children and taxes

I normally don’t like to recommend sole proprietorships to my clients as working business solutions. I hate the additional liability that they create, and from a tax perspective they don’t make a lot of sense, either. You’re looking at paying a 15.3% self-employment tax on all your income, which can be cut in half just be switching to a corporation. But every so often a situation comes up where using a sole proprietorship can work to your advantage.