Creating business entities may serve to reduce tax liability under certain circumstances.
The Tax Cuts and Jobs Act of 2017 (Trump Tax Reform), IRC 199A allows a 20% deduction for Qualified Business Income. Under this provision, creating an entity such as a Limited Liability Corporation (partnership or S corporation) may be advantageous in minimizing your tax liability. In some cases, creating a C corporation to take advantage of the 21% corporate tax rate would serve to reduce liability.
Such business entities create additional reporting and filing requirements which may offset any benefit.
I can help you consider and select the proper entity and prepare the necessary tax returns which are often complicated due to depreciation of assets, inventory, elections and other issues.