A married couple, Kirra and Jarrah make and sell wooden salad bowls, spoons, and tumblers.They built their business from scratch and take real pride in the quality of their work.In addition, to running this business, they both teach at their local school.

Question 1

Based upon the facts, what kind of business form is Kirra and Jarrah running?

a.sole proprietorship

b.limited partnership

c.limited liability partnership

d.general partnership

Kirra earns $58,000.00 teaching.What income does she report on her personal income taxes?

a.only her income from teaching

b.her income from teaching and her share of their business earnings

c.her income from teaching and all of the money their business earnings

d.she does not have to report any income

Kirra and Jarrah are not permitted to set up a corporation given that they are a married.

a. True

b. False