The profits of a sole proprietorship are taxed as the personal income of the owner.

Name: The profits of a sole proprietorship are taxed as the personal income of the owner.
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Quizplus · Accepted Answer

This is because a sole proprietorship is not a separate legal entity from the owner, so the business income is considered the owner's personal income for tax purposes. The owner reports the profit or loss on their individual tax return and pays taxes on it accordingly.

The Profits of a Sole Proprietorship Are Taxed as the Personal