The owner of a sole proprietorship pays federal income taxes at the corporate income tax rate, based on the net earnings of the sole proprietorship.

Name: The owner of a sole proprietorship pays federal income taxes at the corporate income tax rate, based on the net earnings of the sole proprietorship.
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The owner of a sole proprietorship does not pay taxes at the corporate income tax rate, but rather at the individual income tax rate on the net earnings of the sole proprietorship.

The Owner of a Sole Proprietorship Pays Federal Income Taxes