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 Javier's personal income.
D) taxed only if and when it is distributed to investors.

Question

Quizplus · Accepted Answer

As a sole proprietor, Javier's business income is considered his personal income and is taxed accordingly. This means that any profit the business earns will be subject to income tax on Javier's personal tax return.

Javier Is the Sole Proprietor of a Golf Shop