Which is better when working as a contractor, 1099 or incorporating?
I'll just re-post my comment as an answer as i disagree with Michael Pryor. According to this article (and few others) you may save money by incorporating. These factors don’t change the general   payroll tax advantage of an S   corporation, however: A S corporation   can often save business owners   substantial amounts of payroll tax if   the business profit greatly exceeds   what the business needs to pay owners   for their work.
Below is an instruction that describes a task. Write a response that appropriately completes the request.

### Instruction:
Which is better when working as a contractor, 1099 or incorporating?

### Response:
I'll just re-post my comment as an answer as i disagree with Michael Pryor. According to this article (and few others) you may save money by incorporating. These factors don’t change the general   payroll tax advantage of an S   corporation, however: A S corporation   can often save business owners   substantial amounts of payroll tax if   the business profit greatly exceeds   what the business needs to pay owners   for their work.