The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business.

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Proprietorships do not pay separate corporate income tax, as the profits and losses are reported on the owner's personal tax return. Additionally, they are relatively easy and inexpensive to form, as they do not require filing with the state or creation of formal governing documents.

The Facts That a Proprietorship, as a Business, Pays No