This is a non REI related question. I currently have a full time job with benefits and I am looking for ways to limit the amount of taxes I pay. Can I legitimately and legally form a company to contract with my current employer to use 40hrs a week of my time, bill them thru the company instead of having them take out payroll taxes, and be able to maintain all of my benefits such as health ins, vacation, retirement, etc? Could I then write off things like office space, vehicle payments(even if not leased or in the companies name), auto ins, gas, repairs, mileage, office supplies, business phone, cell phone, etc. Can the new company also write off life insurance policy payments that are in my name? Is it possible to pay zero tax including social security?
I am looking for general information so that when I approach my accountant I have a decent idea of what I can do and what I can’t.
If you do as you propose, eventually you will not have to pay any taxes or provide your own support. The Federal prison system will provide all that you need.
So which part is not legal? Certainly I can start a company and contract to do work. And in doing so what would be wrong with writing off my vehicle, mileage, office, etc?
Either you are a vendor or an employee. If you are vendor, they don’t withhold taxes and don’t pay benefits. If you are an employee, you get benefits and taxes are withheld. Even if you incorporate or get paid through an entity, you will still be subject to employment taxes and you will have to pay both the employee and employer parts, but you have more generous deductions.
Could I then write off things like office space, vehicle payments(even if not leased or in the companies name), auto ins, gas, repairs, mileage, office supplies, business phone, cell phone, etc
yes (well, vehicle interest can be a deductible business exp. and you can take business (not personal) mileage OR actual expeses, but not both. personal use of a vehicle is never deductible.)
Can the new company also write off life insurance policy payments that are in my name?
generally, no, unless the company is the beneficiary.
Is it possible to pay zero tax including social security?