Dburd61, Really I would talk with your CPA, Lawyer, and even several other good business friends that has done it in the past. Research it before you make your decision. Everyone's experience is different than someone else's. We incorporated this past month. I ran through the pro's and con's over the past 6 months and finally made my decision. As far as paying the double taxation through the corporation that is true, but with a good CPA and financial planning you can exhaust the extra tax easily. Please make sure you have a CPA that will work with you to help grow your business not someone who you see twice a year and that does your taxes with you. They need to be someone that gets you fired up and helps your business grow with financial smarts. Make him or her part of your business structure.