Cpa Kaival PatelDirector, Profuture Tax Academy · Helping Small Business, CPA & Bookkeepers to Grow

Stop Incorporating Just to save Taxes!

Name: Stop Incorporating Just to save Taxes!
Uploaded: 2026-02-01T14:19:54+00:00
Duration: 25 s
Channel: Cpa Kaival Patel
Description: In this concise YouTube advisory, the speaker warns against forming a corporation solely to reduce tax liability for a low‑income side hustle. He breaks…

1 Feb 2026 · 0 min

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In this concise YouTube advisory, the speaker warns against forming a corporation solely to reduce tax liability for a low‑income side hustle. He breaks down the typical expenses—approximately $500 in legal incorporation fees and about $1,000 each year for corporate tax filing—totaling over $1,500 annually. For a $10,000 side‑hustle income, the tax savings are essentially negligible, making incorporation financially disadvantageous. He concludes that unless the side‑hustle generates roughly $30,000 or more per year, it is wiser to remain a sole proprietorship.

Stop incorporating your side hustle just to save you taxes. It's costing you much more than that. I see this every day. You make $10,000 and then you spend more than $1,500 just to maintain this incorporation. Here is the math: legal fees to incorporate, $500 plus corporate tax return, $1,000 per year. Tax saving on that $10,000, almost zero. Unless you are making $30,000 plus, stay sole proprietorship.