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Denzel is checking his state’s government website regarding applying for a tax ID number for his business. What would be the determining factor for obtaining a tax ID number or employer identification number (EIN)?

(1 point)
Responses

Professional representation
Professional representation

Legal capacity
Legal capacity

Structure of business ownership
Structure of business ownership

Contractual obligation
Contractual obligation

1 answer

The determining factor for obtaining a tax ID number or employer identification number (EIN) is:

Structure of business ownership

This is because the type of business entity (such as sole proprietorship, partnership, corporation, etc.) will influence whether an EIN is needed and how it is applied for.