According to the 2017 Tax Cuts and Job Act, the number of employees is a factor in deciding whether to form a corporation, partnership, or sole proprietorship.
A sole proprietorship, often known as a sole trader, is an unincorporated business with a single owner who reports business profits to their personal tax return.
As a type of company organisation, sole proprietorships are typically not subject to state regulation. Initially operating as sole proprietorships, businesses later adopt a more, deduction introduced by the Tax Cuts and Jobs Act of 2017. A deduction was established for households with income from pass-through businesses by the Tax Cuts and Jobs Act of 2017.
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