From The Center for Financial, Legal, & Tax Planning, Inc:
It isn’t exactly a secret that taxpayers and business owners consistently look to pay as little money as possible to the federal government. Whether they use tax deductions, tax credits, or any other means of reducing their tax burden. When it comes to business owners, one way to do this is to evaluate the taxation structure of your corporate entity. There are several different options to choose from, such as sole proprietors (where income is reported on an individual’s Schedule C) or partnerships (where income is reported on a business’ Form 1065. Other individuals, however, may find it to be more beneficial to elect as either an S corporation or a C corporation status with the Internal Revenue Service to effectively minimize tax burdens.