Owners of small businesses do not have to pay personal taxes on their salaries and other ownership-related income they withdraw from the business.

Question

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Owners of small businesses are required to pay personal taxes on their salaries and other ownership-related income they withdraw from the business. This is because small businesses are typically structured as pass-through entities where the profits and losses are passed through to the owner's personal tax return. Therefore, the owner is responsible for paying taxes on the income they receive from the business.

Owners of Small Businesses Do Not Have to Pay Personal