When should a "Sole Proprietor" require a Tax ID Number? This is a commonly asked question by many small business owners. The IRS, specifically addresses this issue by stating that "a sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns is the only business person who does not need an employer identification number."
In this situation, the Sole Proprietor should use his or her social security number as the taxpayer identification number. |