If your business is still filing a Schedule C as a Sole Proprietorship to report your taxable income on your individual tax return, it may be time to consider electing to be taxed as an S Corporation.  Like a Sole Proprietorship, the allure of the S-Corporation is the avoidance of double-taxation that a regular corporation (C-Corp) cannot avoid.  The income from the S Corporation is also reported on your personal tax return, just like a Sole Proprietorship.  Even better than a Sole Proprietorship, S Corp profits are NOT subject to that heavy 15.3% Social Security and Medicare funding Self-Employment Tax.  Further, Schedule C for Sole Proprietorships is the most highly audited tax return by the IRS.