I see two benefits of pass-through taxation. The first benefit is that during the early years of your writing career, your business expenses will exceed your income. You're buying courses, going to conferences, and hiring editors. All the while, you have little or no income from your writing because you don't have a published book. In those early years, you can count your business expenses against the income from your day job and potentially your spouse's day job if you are married filing jointly. During your initial lean years, you get some nice tax deductions.  The second benefit is that you only have to pay taxes on the income once. Entities like C corps that don't provide pass-through taxation have to pay taxes on the income twice. The United States has some of the highest corporate tax rates in the world and that is on top of your personal taxes. It's likely the biggest tax burden you can have.