I currently work as a graphic artist where I sell digital artist resources such as 3d models and textures and human character skins. I sell all of my products online. They are digital products and no tangible goods are exchanged. I am taxed as self employed which is a huge amount of taxes for me. I am looking for a way to alleviate this huge tax burden and was told that an S corporation was the way to go. I am the only partner in this "business".What are my best options in this situation in order to avoid paying such a huge amount of self employment taxes? Is there some option that is better than an S corporation? Also I am in California if that makes a difference though my business is all conducted online through a third party brokerage.
Can I form an S corporation for an internet only digital goods business?