All the profits of a sole proprietorship are taxed as current income of the owner even if they are not withdrawn from the business.

Question

Quizplus · Accepted Answer

As a sole proprietorship, the business and the owner are considered the same entity for tax purposes. This means that all profits are considered personal income for the owner and are subject to income taxes, regardless of whether they are withdrawn from the business or not.

All the Profits of a Sole Proprietorship Are Taxed as Current