Final answer:
The statement regarding LLP taxation is false; LLPs function as pass-through entities with income passed to the partners who then pay personal income tax on it. The claim about proprietary colonies is also false since Proprietors had various responsibilities. For a sole owner and employee of a corporation, multiple federal taxes would apply.
Step-by-step explanation:
The statement that an LLP pays taxes as a corporation, and its income is not passed through to the limited partners is false. An LLP, or Limited Liability Partnership, is known for its tax treatment as a pass-through entity. This means that the income of the business is not taxed at the entity level. Instead, the profits are passed through to the partners who then report their share of the income on their individual tax returns. As a result, the LLP itself does not pay federal income taxes, avoiding the problem of double taxation that corporations sometimes face.
Moreover, the concept of a proprietary colony is from a different context, which relates to the historical governance of colonies where Proprietors did have responsibilities beyond just collecting profits. Hence, the statement concerning proprietors in proprietary colonies having no responsibilities except to collect profits is also false.
Lastly, if an individual is the sole owner and employee of a corporation, he will have to pay various types of federal taxes, including income tax, self-employment tax, payroll taxes (if applicable), and potentially others based on the specific circumstances of the business.