What is the difference between a sole proprietor and a partnership when it comes to taxes?

A sole proprietorship is a business structure in which an individual owns and operates the business. The income and expenses of the business are reported on the individual's personal tax return, and the business is not taxed separately. In contrast, a partnership is a business structure in which two or more individuals own and operate the business. The partnership files its own tax return, but it does not pay taxes on its income. Instead, each partner reports their share of the partnership's income and expenses on their personal tax returns. It's important to note that the tax rules for sole proprietorships and partnerships can vary depending on factors such as the size of the business and the industry in which it operates. It's a good idea to consult with a tax professional to determine the best structure for your business and ensure compliance with tax laws.