The fact that a proprietorship,as a business,pays no corporate income tax and that it is easily and inexpensively formed are often cited as key advantages to that form of business.

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A proprietorship is not a separate legal entity from its owner. Therefore, its income is considered to be the income of the owner and is taxed as personal income rather than corporate income. Additionally, proprietorships can be formed with minimal paperwork and costs compared to other business structures.

The Fact That a Proprietorship,as a Business,pays No Corporate Income