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Problem 1: Jeremy operates a sole proprietorship to sell plastic army figurines out of his garage. He is the only person who controls the california-source income generated. Which of the following should he keep in mind when completing his taxes?
a. He has to withhold California state income and franchise.b. Because a sole proprietorship is a separate legal entity from its owner, Jeremy just as to file corporate tax returns for the entity.c. As long as jeremy is paid less than $50,000 for the calendar year, it is his choice about whether or not to withhold for income and franchise tax.d. As long as Jeremy does not get an FTB WAIVER, there us no withholding requirement.
santana rey created business solutions on october 1 2011. the company has been successful and santana plans to expand
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