In order to obtain limited liability, a sole proprietor incorporates his business. Under the check-the-box Regulations, the entity can elect to be treated as a partnership.

Question

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A sole proprietorship that incorporates becomes a corporation, not a partnership. Under the check-the-box regulations, it can elect to be treated as a corporation or a disregarded entity, but not as a partnership.

In Order to Obtain Limited Liability, a Sole Proprietor Incorporates