Which of the following is NOT a benefit of being a sole proprietorship

QUESTION

Which of the following is NOT a benefit of being a sole proprietorship?

A) starting up the business with ease
B) making all your own decisions
C) keeping all the profits
D) paying no income taxes
E) ending the business with ease

ANSWER

Answer: D
Explanation: D) Sole proprietorships are taxed, but the taxes are relatively simple. Profits are taxed just once, at the owner’s personal income rate.