Question

For tax purposes, sole proprietorships pay sole proprietors guaranteed payments as compensation for their services.

A. True

B. False

Answer 1

true ,

For tax purposes, sole proprietorships pay sole proprietors guaranteed payments as compensation for their services

sole proprietorship:

The sole proprietorship is the simplest business form under which one can operate a business. Thesole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

In contrast to a conventional representative, as a sole proprietor you don't have anybody denying pay assessments of your paycheck. This implies you must gauge the amount you'll owe in assessments toward the finish of every year. You will at that point make quarterly installments dependent on your estimations to the Internal Revenue Service (IRS) and, whenever required, to your state also.