This sparks a moral or ethical question to me. I may grumble about paying taxes but I enjoy the fruits of what my state and Fed government does with the funds. Schools, roads, EMS, military, etc etc. While setting up an LLC to avoid paying taxes might be done legally, to me it's still wrong. Loopholes and hoops and of course risk. I try and do the right thing, I sleep better. When you dodge your fair share of taxes, the rest of us get to pick up the tab. You're not hurting the gubmint, you're sticking it to your fellow man. But morals and ethics are on a very differnt page from legalities. Plenty of legally yet morally bankrupt folks. I can tell you, you won't win many friends here bragging about it.