Answer:
The number of employees is irrelevant. The sole proprietor reports income to the IRS as part of his or her personal tax return under his or her SSN, using a schedule of income and expenses for the business. A tax return is not filed under an employer identification number (EIN). The only thing that a sole proprietor uses an EIN for is reporting and depositing the taxes withheld from employee wages.
First published on BankersOnline.com 10/25/10
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