The facts that a sole proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. True False

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Otto

Business

21 May, 07:05

The facts that a sole proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. True False

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Mckinley Reed · Answer 1

The statement is: True.

Explanation:

Sole proprietorships are businesses where the owner is the only individual in charge of the entity and the operations. This type of entity is easy to create and dismantle because there are not many regulations for them. The sole proprietor does not pay corporate taxes since the business income is included in the personal tax return the owner sends to the Internal Revenue Service (IRS).

Sole proprietorships represented approximately 73% of businesses in the U. S. during 2011, according to the Census Bureau.