What is the tax differential between unincorporated and incorporated businesses?
Unincorporated business income is taxed in the hands of the proprietor and can be taxed as high as 46.41% over $118,285 of taxable income. Whereas an incorporated business is a living, legal entity by itself – it pays its own taxes, files its own tax returns and pays 18.62% up to $400,000 of taxable income.
