He should just apply for an EIN--it's easy enough to do. Best argument in favor is that he won't have to give his SS number to clients. Operating without an EIN makes me wonder if his business banking is combined with his personal, which is a big No No!
Thanks for this additional information. I used to have many SD 100's but now just one. The take home is to also know which base the SD uses and they do differ. Like all the muni's, another PIA!
Even if the child works for 1 or 2 other people it's highly unlikely the child is an independent contractor.
In several of the Employment Tax Audits that I have been involved, the auditor did extensive on line search in the state and other databases
looking for confirmation that the individual in question was actually in business .
W-2 for the child or else he'll pay SE tax. And, he's not an independent contractor if his only work is for his parent's business using the exclusion from FICA for a child of the owner.
If you are a sole proprietor you are no longer allowed to use your SSN once you have employees. It isn't illegal to merge your personal banking and business if you are a sole proprietor. If no taxes are withheld and it's for their child - should it be a 1099?