generally responsible for all day-to-day activities. In exchange for assuming all this responsibility, you get all the income earned by the business. 118 Download this book for free at: Chapter 5...

generally responsible for all day-to-day activities. In exchange for assuming all this responsibility, you get all the income earned by the business. 118 Download this book for free at: Chapter 5 http://hdl.handle.net/10919/70961 Profits earned are taxed as personal income, so you don’t have to pay any special federal and state income taxes. Disadvantages of Sole Proprietorships For many people, however, the sole proprietorship is not suitable.