Asked by Jessica Lazur on May 28, 2024
Verified
A sole proprietor must file
A) an income tax return for the entity and for him- or herself individually.
B) an individual income tax return only.
C) an income tax return for the entity only.
D) a profit and loss statement only.
Income Tax Return
A document filed with tax authorities detailing income earned, tax deductions taken, and taxes owed for the year.
Entity
Any organization, institution, or being that has a distinct existence, legally recognized as capable of rights and duties.
Profit
The financial gain achieved when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain the activity.
- Understand the tax implications for different business organizations.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
A sole proprietorship does not file a separate income tax return for the business. Instead, the owner reports business income and expenses on their individual income tax return.
Learning Objectives
- Understand the tax implications for different business organizations.