What are the key differences in taxes between being self-employed and being a business owner?

The key difference in taxes between being self-employed and a business owner is how income is taxed. Self-employed individuals pay self-employment tax, which includes both the employee and employer portions of Social Security and Medicare taxes. Business owners, on the other hand, may be subject to different tax rates and deductions based on the type of business structure they have, such as a corporation or partnership.