Question

Which entities should have their own taxpayer identification number?

a. Sole Proprietorship
b. LLC
c. Corporation
d. All of the Above

Answer 1

All business entities, including sole proprietorships, LLCs, and corporations, should have their own taxpayer identification number. While sole proprietors and single-member LLCs can use the owner's social security number, they can also obtain an EIN, and LLCs and corporations require their own unique identifiers for tax purposes.

Step-by-step explanation:

Which entities should have their own taxpayer identification number? The entities that should have their own taxpayer identification number include a sole proprietorship, LLC (Limited Liability Company), and a corporation. The correct answer is d. All of the Above. Each of these business structures is recognized as unique by law, and while the sole proprietorship and the single-member LLC are often tied directly to the owner's social security number for tax purposes, they still can obtain an EIN (Employer Identification Number) for various reasons, including hiring employees. LLCs and corporations are separate legal entities from their owners and thus require their own tax identification numbers for federal tax purposes.