For tax purposes, a sole proprietorship is a pass-through entity. Business income passes through to the business
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Question:
For tax purposes, a sole proprietorship is a pass-through entity. Business income "passes through" to the business owner, who reports it on their income tax return, reducing the paperwork required for annual tax filing.
Can you please describe what a sole proprietor is responsible for paying other than his/her income taxes?
Also, what are the benefits of being a sole proprietor?
Thank you.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: