[header] How to compare tax rates between business structures [title] Understand the pass-through business idea. [step] Some businesses are considered to be pass-through structures, which means the business's income passes through the business structure directly to the individual owners. If your business is a pass-through business, it will not be taxed at a corporate rate. 
Instead, your business's income will be taxed at your individual income tax rate. [substeps] Pass through businesses always include sole proprietorships and s corporations.