A sole proprietorship regularly earning in excess of $40,000 to $50,000 of taxable income annually is not large enough to warrant incorporation.

Question

Quizplus · Accepted Answer

The decision to incorporate a business is not solely based on the amount of taxable income it generates. Incorporation can offer benefits such as limited liability, potential tax advantages, and easier access to capital, which might be desirable regardless of the business's current income level.

A Sole Proprietorship Regularly Earning in Excess of $40,000 to $50,000