Javier is the sole proprietor of a golf shop. Because he is a sole proprietor, any profit Javier's business earns is:
A)Totally tax-free.
B)Taxed only as Javier's personal income.
C) Taxed twice, once as business income, then again as Elroy's personal income.
D)Taxed only if and when it is distributed to investors.

Question

Quizplus · Accepted Answer

As a sole proprietor, Javier and his business are considered one and the same for tax purposes. Any profits earned by the business are treated as personal income for Javier and are taxed accordingly.

Javier Is the Sole Proprietor of a Golf Shop