Question

The owner of a sole proprietorship declares any profits earned by the company on his personal income tax at the end of the year. true of false?

Answer 1

I think your answer might be true

Answer 2

Answer:

True

Explanation:

Sole proprietorship and its owner are not treated a separate legal entities for the purpose of taxation. in fact a sole proprietorship and its owner are are both taxed under the same tax.

The owner of a sole proprietor reports the income from the sole proprietorship in his tax form when filling the tax assessment form.

A sole proprietor is personally liable for all the debt of the Sole proprietorship including the tax liability, hence the income from the sole proprietorship  is included in his tax return.