Law in the Marketplace: taxation

In the New Hampshire Business Review, John Cunningham discusses the tax effects on sole proprietorships versus single-member LLCs:

Thousands of New Hampshire individuals who own single-owner businesses conduct their businesses as sole proprietorships; that is, they don’t use LLCs or other state-law entities to conduct them. All of these individuals owe it to themselves to consider whether, for legal or tax reasons, they should conduct them instead as single-member LLCs.

For concreteness, I’ll talk about these factors insofar as relevant to a hypothetical New Hampshire business owner named Mary Jones.