I'm pretty sure you just described an S Corp, which isn't subject to corporate taxes (they "pass through" to the owners personal returns). Many small businesses

I'm pretty sure you just described an S Corp, which isn't subject to corporate taxes (they "pass through" to the owners personal returns). Many small businesses already do this. But as with anything, there are pros and cons to S Corp vs C Corp vs LLC. Here's the first hit on google: http://www.forbes.com/sites/robertwood/2012/05/03/c-or-s-corporation-choice-is-critical-for-small-business/ http://www.forbes.com/sites/robertwood/2012/05/03/c-or-s-cor...