Actually, an "ordinary" corporation (a C-corp) subjects your income effectively to double taxation: it as first taxed as corporate income (as the corporation's own income), then secondly, when you take a distribution or are paid dividends, they are taxed as part of your income. For a small business, with one or a limited number of owners, a better choice is either an S-corp or an LLC: both of them are "pass through" entities, which means the profits "pass through" the entity and are only taxed once, as part of your personal income. They also both offer the same protection from liabiltiy as an "ordinary" corporation. In terms of choosing between the two, there is little to choose between: an LLC involves somewhat less paperwork, formalities, and reporting, while an S-corp makes it a little easier to sell interests or portion of the business in the future to other people, by simply selling shares of stock.