Answer:
generally receives favorable tax treatment relative to a corporation.
Explanation:
Legally, a sole proprietor and the business are on and the same. The income of the business is the income of the owner. For tax purposes, the business income 'passes through' as the owner income; hence the owner can file it as his or her personal income. As such, the business is not expected to submit a separate corporate income tax.
A corporation has to file corporate income tax as an independent entity. The owners or shareholders have to submit their personal income tax from the proceeds of the business. As such, there an element of double taxation in a corporation's taxation. Double taxation possibility is not there in a sole proprietorship.
