One thing that the sole proprietorship and the corporate form of organization have in common is that neither must pay income taxes.

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Both sole proprietorships and corporations are required to pay income taxes on their earnings. However, the taxation process differs between the two forms of organization. Sole proprietors report their business income on their personal tax returns and are taxed at the personal income tax rate. Corporations are considered separate tax entities and are subject to corporate income tax on their profits.

One Thing That the Sole Proprietorship and the Corporate Form