The amount of tax increase for small business really depends on the business form. Small businesses that are pass through, such as sole proprietorship, partnerships, and s-corporations will see higher taxes due to the increase in individual tax rates.

Beginning in tax year 2013 (generally for tax returns filed in 2014), a new tax rate of 39.6 percent has been added for individuals whose income exceeds $400,000 ($450,000 for married taxpayers filing a joint return). The other marginal rates -- 10, 15, 25, 28, 33 and 35 percent — remain the same as in prior years. The guidance contains the taxable income thresholds for each of the marginal rates.

Self-Employment taxes increased by 2% when the payroll holiday sunset. There is also a 0.9% medicare tax for incomes over $250,000 for joint filers ($200,000 for single filers).

These increases in individual rates should be compared against the flatter corporate taxes and favorable dividend rates. Some small businesses may benefit my reorganizing as a C-Corporation.