Haha promise there’s no tax scheme. He was recently audited by the state and there were no findings and his accountants for business #1 and #2 have told him he doesn’t need them bc his books are so clean. He’s just trying to save his kid some money
To your point about being held liable, the more research I do the more I’m with you here and think I need an LLC to separate this from my personal finances.
This is the path I’m thinking makes the most sense for our situation. But I also don’t want to be personally responsible for double the tax if I go 1099 vs being W2. I won’t have much in the way of deductions as a 1099. Some mileage as I don’t intend to work out of my home
I’ve started going down the path of creating my own S Corp and he can just pay me as he would his attorney but I think my tax liability would be even higher.
We’re not talking huge dollars here (maybe $10-$20k a year) but my primary source of income is in the 24% income tax bracket so really just trying to limit exposure there
This is really the answer I needed above all else. Thank you so much!!
I think I can bump up my retirement contributions in my day job (we have a mega backdoor ROTH available) to offset the liability of going this way on my end and my dad will just have the higher liability on the company side unfortunately