Hi All, My father is opening his third business and has asked me to take on the accounting for it (yes, I’m qualified) as he won’t be as hands on in business #3 as he is in #1 and #2.
Since this will be a second source of income for me that I don’t need he asked me to research if there is a way to pay me tax exempt. Ie, if I open a 501-3c or something similar and get paid through that can I set the money aside for my child’s college fund (I’m not interested in setting up a 529 account)
I’m wondering if there’s a separate entity I can establish so I’m not an employee but rather a contractor to be smart with my obligations.
Your dad does not have higher tax liability if you go as a contractor. he just deducts your pay as an expense. The government will get less of the money, overall, if you work as a contractor.
Your drive to the office will not be a deductible expense. I see you mentioned that elsewhere. The drive to you first work location of the day, and home after, is considered personal.