The main differences between net income reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

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Proprietorships are taxed as individual income while corporations are taxed separately as an entity. Additionally, in a proprietorship, the owner takes all profits as personal income, while in a corporation, owners may receive salaries or dividends, which are separate from the net income reported by the company.

The Main Differences Between Net Income Reported by a Proprietorship