Which species of termite is known to live in soil?

The species of termite known to live in soil is the Subterranean termite. This group of termites typically constructs underground nests and forages for food both below and above ground. Their behavior of nesting beneath the soil provides them with favorable conditions for moisture and temperature regulation, which is critical for their survival. Subterranean termites are also known for their ability to create mud tubes, which they use to travel between their nests and food sources while protecting themselves from exposure to the elements and predators.

In contrast, Drywood termites do not require contact with the soil and live in the wood they infest, establishing colonies in timber structures without needing external moisture from the ground. Dampwood termites primarily inhabit decaying wood that is moist but are not dependent on soil for their lifecycle. Formosan termites, while they do have some subterranean behavior, are often considered a subtype of Subterranean termites, and their nests may also be located above ground in the walls or in trees. However, the defining characteristic here is that Subterranean termites primarily and specifically thrive in the soil, making them the distinct correct choice for this question.