One tax advantage is that you can deduct your health insurance premiums that you have paid on behalf of one of your owner-employees.  Not only that, you can save on self-employment taxes since income from corporations are not subject to Social Security.  You can also deduct workers’ compensations, Medicare taxes, and life insurance.  And that is not even the beginning.  Depending on your corporation’s income level, your federal income tax rate may be as low as 15%. 

You may be able to deduct any travel and entertainment expenses that are related to the business.  One great tax benefit is that if your business suffers a loss, there are no limits on the amount of losses you can deduct.  Have you ever heard of income shifting?  This is the dividing up of the income between a corporation and its shareholders to minimize overall taxes. 

Also, if you lease personal property, like houses or cars, you may receive some tax savings.  The tax benefits alone are a great reason to incorporate your business.  Talk with your business accountant.  He or she can advise you on all the tax benefits available to you because of your corporation and what other deductions are available to you.