How Might a Sole Proprietorship Have a Possible Tax Advantage

Multiple Choice

How might a sole proprietorship have a possible tax advantage?

A) It does not have to make tax payments until the end of the year.
B) It does not have to pay federal income taxes.
C) It does not have to charge sales tax on its merchandise.
D) It does not pay special state and federal taxes that corporations pay.
E) It is subject to a form of double taxation.