TAX ADVANTAGES
Another important benefit that comes from owning your own business is that it gives you the opportunity to convert many of your personal expenses into tax-deductible business deductions.

With combined income tax and social security taxes approaching fifty percent in some states, this means that every dollar of deductions is worth two dollars in income—the government pays up to half of your deductible expenses. (This also applies to part-time businesses.)

Another benefit is if you run your own business, the IRS allows you to set up a "Keogh" pension plan that shelters a decent percent of your income until retirement.

The SBA offers the following advice:
Because tax laws can be extremely complex, small business owners are strongly encouraged to seek professional assistance. A good accountant or CPA (Certified Public Accountant) will help you navigate through local, state and laws and also explain how to minimize future tax obligations.

Even if you retain professional tax assistance, your tax responsibilities are still solely your obligation. You should understand how the various tax systems impact your business.

Be sure to discuss tax advantages with your accountant or financial advisor. You can find more information about taxes on the SBA's website.