Javier is the sole proprietor of a golf shop.Because he is a sole proprietor,any profit Javier's business earns is:
A)Totally tax-free.
B)Taxed only as Javier's personal income.
C)Taxed twice,once as business income,then again as Javier's personal income.
D)Taxed only if and when it is distributed to investors.

Question

Quizplus · Accepted Answer

As a sole proprietor, Javier and his business are not considered separate entities for tax purposes. Therefore, any profit earned by the business is taxed only as personal income for Javier.

Javier Is the Sole Proprietor of a Golf Shop