Explain what part of this is illegal.
@TacoMac agree so he can help. I need the lol.
Set up a S corporation for self. have your clients or customers now pay the corporation instead of you. begin withdrawing a salary ( earned income) from the corporation . not a full salary 50-60 percent then pay yourself the other 50-40 in dividends ( unearned income ). self-employment tax applies only to earned income.
you are then eligible to deduct half of your self-employment taxes from your federal taxable income.