Legal Question in Business Law in Virginia

Re: Online Business

In general, if you are a sole proprietor with no employees you do not have to obtain an EIN (although you may). There are exceptions that apply to some sole proprietors and the IRS has a useful questionnaire that will tell you if your business falls within any exception. If you do not need an EIN you would use your social security number on your taxes.

As far as "registering" your business, a sole proprietor does not have to register, although a business license may be needed depending on the business. However by operating as a sole proprietor you open your own personal assets to be subject to the debts of the business. If someone sued your business and recovered a judgment, that judgment could be enforced against your home, bank accounts, stocks, etc. Many such individuals form an LLC to reduce or eliminate the risk of personal liability, and you may wish to speak with an attorney to decide if this is a good option for you.