Definition: An entity is a person or group of people who are subject to the tax laws. In other words, an entity is a taxpayer. Entities include individual people and businesses.
Business entities include corporations, S-corporations, limited liability companies, nonprofit organizations, estates, trusts, and partnerships. Individual people who are taxpayers should have a Social Security Number or Individual Taxpayer Identification Number (ITIN). Groups of people who are taxpayers should have an Employer Identification Number (EIN).
