BizSugar.com › Management › Paying Too Much Tax? It Might be Time to Incorporate

If you’re a sole proprietor and are reeling at the amount of self-employment and income tax you pay, then it may time to review your business status.

Sole proprietors make up about 70% of all U.S. businesses, and there’s good reason. It’s the easiest business structure to form and operate. But sole proprietors often pay more tax in proportion to their income when compared to other business structures like LLCs and corporations. So even though your business may be growing, you may not be feeling it in your pocket book.