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.

  • Naive_Bookkeeper550OPB
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    1 year ago

    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