Tory wishes to have the simplest form of taxation and to pay taxes on income earned as an employee and from his small business altogether.How should Tory legally organize her business?

Question

Quizplus · Accepted Answer

A sole proprietorship is the simplest and easiest way to organize a small business. As a sole proprietor, Tory can report all of her business income on her personal tax return, so there is no need for a separate tax return for the business. This simplifies the taxation process and ensures that Tory only has to pay taxes once on her combined income. Partnerships, limited partnerships, and corporations all require separate tax returns and can be more complex to manage.

Tory Wishes to Have the Simplest Form of Taxation and to Pay