Which of the following statements is true of a sole proprietorship? A. A sole proprietorship has to pay business income taxes. B. A sole proprietorship joins two or more individuals as co−owners. C. The sole proprietor is personally liable for the liabilities of the business. D. A sole proprietorship is taxed separately from the owner.

Which of the following statements is true of a sole proprietorship? A. A sole proprietorship has to pay business income taxes. B. A sole proprietorship joins two or more individuals as co−owners. C. The sole proprietor is personally liable for the liabilities of the business. D. A sole proprietorship is taxed separately from the owner.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 16DQ

See similar textbooks

Similar questions

Income and loss from which of the following entities is passed through and taxed on the individual's personal tax returns? S corporation Partnership Sole proprietor All of the above
How do business owners determine their taxable income from their business ventures? How does this translate to not-for-profit entities?
The earnings and losses from a sole proprietorship are reported on O the sole proprietorship's state income tax return O the sole proprietorship's federal income tax return O the sole proprietorship business license form O the individual sole proprietor's personal income tax return
What is the legal relationship of a sole proprietorship to its owner? A. The owner and the sole proprietorship are considered to be the same legal entity. B. A sole proprietorship can survive the death of its owner. C. The owner can shelter profits of a sole proprietorship from taxation. D. Then owner is not liable for debts incurred by the sole proprietorship.
A business entity that has no ;ax liability because the entity's income is passed through to the owners, who pay taxes on it is O a. 0 b. O c. 0 d. a pass-through entity. a sole proprietorship an entrepreneur. an independent contractor.
Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business. Which of the following is NOT income tax exempt?* A. BOI-registered enterprise enjoying tax holiday B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit C. Forex income in the Philippines of an Offshore Banking Unit D. Regional area headquarter of a multinational company E. None of the Above A resident corporation is one that is: A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines. B. Organized under the laws of the Philippines that…
Which of the following types of income is subject to the self-employment tax? a.Dividends from stock b.Interest income c.Gain on sale of real estate d.Income from a sole proprietor's law practice e.None of these choices are correct.
1. Using either the “hobby loss” (hobby vs. “trade or business”) or the “day trader” (vs. investor) issue, explain how to identify taxpayers who properly should be claiming “sole proprietor” status and reporting the results of their activities on Schedule C.
Which of the following is true for a Limited Liability Company (LLC)? business income is taxed at the corporate rate the owners have unlimted liability the company is limited in its liability business incomes is taxed at the individuals personal rate none of the above
For federal income tax purposes, what term refers to the business entity not being a separate entity from the owners? This type of entity is not taxed but the owner(s) must record the earnings from the business on his/her individual income tax return. Group of answer choices pass-through entity non-profit entity election entity mutual entity
Which Which of the following statements is correct about a sole trader? a. Pays corporation tax on business profits b. Must register his/her business as a separate legal entity C. Must provide a profit share to employees d. Is liable personally for the consequences of any legal action against the busines
The income tax consequences of a business transaction depend on which entity engages in the transaction because: Multiple Choice The amount of income from the transaction depends on which type of entity engaged in the transaction. The transaction may be taxable or nontaxable depending on which type of entity engaged in the transaction. The rate at which the income from the transaction is taxed depends on which type of entity engaged in the transaction. The character of the income from the transaction depends on which type of entity engaged in the transaction.