When you are having your business at embark stage, there are some conditions when a business gets its entity type. Apply for EIN is very vital to do for running your business hassle-free. The LLC is a limited liability company. It basically provides the authority of sole proprietorship or partnership. This type of company is very famous and in use in the US. On the other hand, either the business is a sole proprietorship or the S corporation, the tax will be similar.