Everyone, from small business owners to independent contractors, knows there some extremely specific advantages to incorporating. Not only do you receive some protection in case of liability, since the business is held liable, instead of you – the individual owner – (although this depends largely on the circumstances, of course), but incorporating also sets you up to be eligible for plenty of tax breaks.
Since different types of corporations are taxed at varying rates, they are also eligible for many tax breaks that individuals are not. Without a doubt, sifting through the incorporation paperwork may help you quite a bit when filing your yearly federal and state tax returns. But overall, there are five main ways that you can save money on your taxes, simply by incorporating your business. So, you need to be aware of the following advantages when making any big decisions: