That’s a difficult question to answer because it depends on the individual’s tax situation. Corporations file a corporate tax return and pay the corporate tax rate, but corporate owners pay tax on dividends they receive. For sole proprietors, income from all sources is combined to get a net taxable income. The federal tax rates vary depending on the person’s tax filing status.  Other factors, like whether the business has a loss or profit, and available tax credits and dividends in each business type also come into play when figuring a business owner’s personal tax liability. This question is best answered by having a licensed tax professional review your sole proprietorship income on a regular basis.