The BOIR requirement applies to businesses registered as separate legal entities. Sole proprietorships, in most cases, don’t file a BOIR. That’s because the law doesn’t see them as separate entities—the owner and the business are one and the same.
Also, obtaining an Employer Identification Number (EIN) from the IRS, registering a fictitious business name, or acquiring a professional license are all common practices for sole proprietorships. However, these registrations don’t establish the business as a separate legal entity, so they don’t trigger a BOIR filing requirement.
It’s important to note that there can be some exceptions. If a foreign sole proprietorship goes through a formal registration process in the US to conduct business here (similar to how a corporation would register), then a BOIR filing might be necessary.
Always consult with a legal or tax professional to determine your specific situation and ensure BOIR compliance.