Match the entity with the statement that describes the tax treatment of that entity. Drag and drop application. Sole proprietorship Sole proprietorship drop zone empty. Partnership Partnership drop zone empty. C corporation C corporation drop zone empty. Revenues and expenses are reported directly on the owner's tax return and the profit (or loss) is subject to both individual income and self employment taxes. Income is taxed at the entity level rather than flowing through to the owner(s). Entity files a tax return but the profit or loss flows through to owners' individual income tax returns