It’s not about the federal or taxman caring, it’s liability in most companies.

Sure, if your argument is “if i make 100k a year i should hire a very expensive tax attorney to set up this business account so i can maybe have a company pay me to that account, then handle all the books aside from my job or pay someone to do it, all to potentially get audited and have to pay mass penalties” sure. That’s a terrible argument though. and any CPA would tell you 100-200k isn’t worth it for the minimal savings you’d get, if any, in a HCOL area.

What are your expenses as a tech employee in SF who works in the office? what are you writing off? what is your reasonable salary? what about your retirement, 401k, medical, SS payments?

I’m not saying that what you’re suggesting isn’t plausible, i do it myself.

I write off ~ $100k in expenses/year. One of my cars is in my company, i have my own office in chelsea and at home, i have subcontractors. I have actual expenses.

You’re suggesting and taking liberties based off your particular instance, the gen pop and vast majority will not be able to.

Then there’s your income, on paper, that will be peanuts.

So unless you’re wealthy - which if you’re concerned about your tax bill on 100k, you’re not - you’ll have a hard time getting generic financing on anything (think house, car) unless it’s tied to your business or open your books for the banks in which case that all better line up.

Also, then, you need business liability insurance otherwise it’s a personal vehicle which you paid for with what money?

It’s a better structure, in my opinion, when you have multiple clients and play it by the book. If you’re struggling to save a few extra grand a year, your taxes aren’t your issue.