All profit earned by a sole proprietorship belongs to the owner and affects his/her tax liability.

Name: All profit earned by a sole proprietorship belongs to the owner and affects his/her tax liability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As a sole proprietorship is not a separate legal entity, all profits earned by the business are considered personal income for the owner and must be reported on their personal tax return. This affects the owner's tax liability.

All Profit Earned by a Sole Proprietorship Belongs to the Owner