Which type of business structure does not require a Federal Employer Identification Number?

A sole proprietorship does not require a Federal Employer Identification Number (EIN) unless it has employees or is subject to certain tax obligations. This type of business structure is typically owned and operated by a single individual, which allows the owner to report income and expenses directly on their personal tax return using their Social Security number.

In contrast, multiple-member LLCs, S-Corporations, and C-Corporations are distinct legal entities, and they all necessitate an EIN for tax identification purposes. LLCs with more than one owner and corporations are considered separate entities from their owners, which requires them to have their own EIN for federal tax reporting and compliance requirements. This distinction is significant, as the need for an EIN generally signals a move away from individual tax reporting towards a more complex business structure requiring formal registration with the IRS.