Juan recently started operating a flower shop as a sole proprietorship. In its first year of operations, the shop had taxable income of $60,000. Assuming that Juan had no other employment related earnings, which of the following is correct?

	a.	The flower shop must withhold employment taxes from Juans earnings.
	b.	Juan must pay self-employment tax on the earnings from the business.
	c.	Juan will be exempt from the self-employment taxes for the fist three years of operations.
	d.	Juan will be exempt from the Medicare tax because the business earnings are below the threshold amount.