CSLB Contractor's Law & Business Practice Exam

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Prepare for the CSLB Contractor's Law and Business Exam. Use flashcards and multiple choice questions, each with hints and explanations. Enhance your exam readiness!

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Who issues the federal Employer Identification Number (EIN)?

The Department of Labor.
The Internal Revenue Service.
The Small Business Administration.
The Federal Trade Commission.

The correct answer is: The Internal Revenue Service.

The federal Employer Identification Number (EIN) is issued by the Internal Revenue Service (IRS). This number is a unique identifier assigned to businesses for tax purposes and is essential when filing tax returns, opening business bank accounts, and applying for business licenses. The IRS manages the federal tax system and oversees the issuance of EINs, ensuring that businesses can properly report their earnings and comply with federal tax regulations. The other organizations mentioned do not have the authority to issue EINs. The Department of Labor focuses on employment and labor laws, the Small Business Administration provides support for small businesses but does not issue EINs, and the Federal Trade Commission is concerned with consumer protection and competition laws rather than tax identification.