Although sole proprietors do not pay any special taxes,as the owner of the business you are also an employee of the business which requires you to:
A)Pay income tax only one time each year.
B)Pay self-employment taxes.
C)Pay for the right to get an employee identification number.
D)File an income tax return for the business.

Question

Quizplus · Accepted Answer

As a sole proprietor, you are not exempt from self-employment taxes which are made up of Social Security and Medicare taxes. These taxes must be paid by the business owner themselves as they are not withheld from any paycheck. Additionally, as the owner of the business, you must file an income tax return for the business on your personal tax return.

Although Sole Proprietors Do Not Pay Any Special Taxes,as the Owner