The type of legal structure that makes self-employment tax a relevant concern is a sole proprietorship. It involves one single owner.
What is a sole proprietorship?
The term 'sole proprietorship' refers to a type of business where there is one single owner.
In a sole proprietorship, the personal owner must pay income taxes depending on the amount of money he/she earned.
The sole proprietorship businesses are very common and this type of business increased in the last years.
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