A sole proprietorship is subject to double taxation in that any earnings are taxed both as income to the business and as income to the owner of the business.

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A sole proprietorship is not subject to double taxation as the business income is not taxed separately from the owner's personal income. The owner reports business income and expenses on their personal tax return and pays taxes on that income accordingly. This is different from a corporation, where the business income is taxed separately from the owner's personal income, which can result in double taxation.

A Sole Proprietorship Is Subject to Double Taxation in That