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Question

John's contracting business is structured as a sole proprietorship. What are the tax implications for a sole proprietorship?

0000

Profit and loss are shared equally between partners

Taxes are paid by the corporation

the owner does not have personal liability for tax payments

Taxes on the income earned is the responsibility of the business owner

Answer

The owner of a sole proprietorship is personally liable for taxes on the income earned.

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A sole proprietorship is a business owned and operated by one individual. The owner is personally liable for all debts and obligations of the business, and profits...