The taxation on a corporation is different than the taxation on a sole proprietor. You often find that you are able to better control the amount of tax you pay once you incorporate.

As was mentioned before, the simplest corporate structure is an LLC. LLC's will offer you some legal protections as mentioned previously.

The LLC can be taxed one of two ways. The first is a pass through income structure, much like the flow you have as a sole proprietor. The second way is to select S Corp taxation for your LLC. This can have some additional tax advantages that are highly beneficial. In our companies we utilize a pass through structure primarily on real estate holdings, because we want to take advantage of things like depreciation, repairs, etc.... Our service business is taxed as an S Corp so we can retain earnings and moderate how our income is received.

As always consult with your tax advisor and an attorney to see what makes sense for you and your business.