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
Structure of business ownership
Angelica has been studying various forms of business ownership for her art gallery. She thinks she will select this type of legal structure because it is the easiest and most common form of business ownership for small business owners.
(1 point)
Responses
Sole proprietorship
The determining factor for obtaining a tax ID number or employer identification number (EIN) would be the structure of business ownership.
The determining factor for obtaining a tax ID number or employer identification number (EIN) is the structure of business ownership.
To get the answer, Denzel should visit his state's government website and look for information on applying for a tax ID number or EIN. Typically, there will be a section specifically for businesses or individuals starting a business. Within that section, there will be details about the different types of business structures (such as sole proprietorships, partnerships, LLCs, corporations) and the requirements for obtaining a tax ID number or EIN based on each structure. Denzel should review the guidelines for the specific structure under which his business operates to determine the steps and requirements for obtaining a tax ID number or EIN.