To obtain limited liability, a sole proprietor incorporates his business.Under the check-the-box Regulations, the entity can elect to be treated as a partnership.

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Under the check-the-box Regulations, a single-member entity that incorporates can elect to be treated as a disregarded entity or a corporation for tax purposes, but not as a partnership. A partnership requires two or more members.

To Obtain Limited Liability, a Sole Proprietor Incorporates His Business