Question

What are the tax advantages of a sole proprietorship?

Answer 1

The tax advantage of the sole proprietorship form of business is that in a sole proprietorship business, the owner has to pay tax only once; there is no tax that needs to be paid as an entity.

The taxes are calculated as the personal income tax of the owner of the sole proprietor.

Also read:

• Sole Proprietorship
• Difference Between LLP and Partnership
• Difference Between Sole Proprietorship and Partnership
• Difference Between Partnership Firm and Company
• Difference Between Dissolution of Partnership and Dissolution of Firm

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