Which field has the lowest incorporated self-employment rate among the listed?

• A. Installation, maintenance, and repair
• B. Sales and related fields
• C. Management, business, and financial services
• D. Construction and resource extraction

Answer: (D)

Think about why people choose to form a business as a corporation or LLC when they’re self-employed. In construction and resource extraction, work is often highly project-based and performed by independent contractors or small, unincorporated firms. The overhead of creating and maintaining a corporate structure—legal filings, payroll compliance, separate tax accounts—can be a heavier burden for these kinds of gigs, and many workers rely on direct contracts, insurance, and liability arrangements rather than formal corporate status. As a result, a smaller share of self-employed workers in this field operate as incorporated entities.

In the other listed fields, professional and service-oriented work commonly involves establishing a formal business to handle client contracts, liability, and tax planning. Incorporation (or forming an LLC) is a practical way to limit personal liability, gain credibility, and optimize taxes, so a larger portion of self-employed workers in those areas choose to incorporate.

So, when comparing these fields, construction and resource extraction show the lowest rate of incorporated self-employment among self-employed workers.