Question: Which of the following statements accurately describes a key difference in the tax implications between a sole proprietorship and a limited liability company $($LLC$)?$ A$)$ Sole proprietors are subject to self$-$employment taxes on all profits, while LLC owners can choose to be taxed as a corporation or pass$-$through entity. B$)$ Both sole proprietors and LLC owners are taxed at the corporate tax rate on their business profits. C$)$ LLC owners are exempt from all business taxes, while sole proprietors must pay a flat tax rate regardless of profits. D$)$ Sole proprietors can deduct all business expenses from their personal income tax, while LLC owners can only deduct a portion of their business expenses.