A potential tax savings as provided by the qualified Business Income or QBI deduction needs to be recognised by the independent contractors. According to the 2017 tax cuts and Jobs act, the contractors are provided with potential tax savings organized in any of the following ways:  Partnerships   S corporations  Sole Proprietorship   Limited Liability Companies or LLCs According to the QBI the contractors are allowed to decrease their qualified business income by up to 20%. However one needs to bear in mind that the QBI does not reduce the Self employment taxes as it is applicable to only the income taxes.