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Income Tax Planning
Chapter 16: Business Entity Selection and Taxation/SOLE PROPRIETORSHIPS
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 16: Business Entity Selection and Taxation

SOLE PROPRIETORSHIPS

01.Core Concepts

Disadvantages Advantages Limited sources of capital Easy to form Unlimited liability Simple to operate No guarantee of continuity beyond the lifetime of the proprietor Easy to sell business assets Business income is subject to self- employment tax Few administrative burdens Income passed through to the owner on Schedule C of Form 1040