The sole proprietorship business of an individual taxpayer is treated as a separate entity for tax purposes.

Name: The sole proprietorship business of an individual taxpayer is treated as a separate entity for tax purposes.
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Quizplus · Accepted Answer

A sole proprietorship is not a separate legal entity from the individual who owns and operates it, so it is not treated as a separate entity for tax purposes. Instead, the income and expenses of the business are reported on the owner's personal income tax return.

The Sole Proprietorship Business of an Individual Taxpayer Is Treated