When an individual wishes to form a sole proprietorship,he or she does so by
A)filing a petition with the IRS.
B)purchasing stock in the proprietorship.
C)filing corporate paperwork with the state.
D)contributing cash or other assets.

Question

Quizplus · Accepted Answer

When forming a sole proprietorship, the individual contributes cash or other assets to the business, as the business is not a separate legal entity from the owner. No corporate paperwork or filings with the state are necessary for a sole proprietorship, and there is no stock to be purchased. Filing a petition with the IRS is not required for the formation of a sole proprietorship.

When an Individual Wishes to Form a Sole Proprietorship,he or She