Which of the following is correct about taxation of sole proprletorships?

Multiple Choice

The business itself pays the taxes on the business Income based on the corporate tax rate.

The business Itself pays the taxes on the business Income based on the princlpal's personal tax rate

The principal pays the taxes on the business Income based on the corporate tax rate.

There is no taxation on business Income earned by a sole proprletorship.

The principal pays the taxes on the business Income based on his or her personal tax rate.