The difference between death and taxes is death doesn't get worse every time Congress meets. -Will Rogers

The way your business is structured makes a difference in how it is treated under the law for benefit and tax purposes. If a business should be incorporated is the biggest question, especially with the ever-changing federal laws and regulations, which affect incorporated business.

A tax rate of 35% is the maximum that corporations have to pay. The corporate tax begins at 15% on the first $50,000 and increases to 25% between $50,000 and $75,000. There is a 34% rate on income between $75,000 and $10 million.

Comparing personal tax rates with corporate taxes is important when deciding whether to incorporate. Tax levels may make it less attractive to form a business as a regular corporation, rather than a partnership, an S corporation or a LLC.

Incorporating can be complicated for a small business, which often start unincorporated and later incorporate after becoming established and successful. The switch can be tax free or taxable, depending on how it is handled. Business owners should assess and review their company's legal status often just to be sure they are not missing anything. Such reviews are necessary given the frequency of changes in tax rules.

Consult with your attorney and financial advisor.