Answer:
To avoid the self-employment tax
Explanation:
The purpose of the self-employment tax is to provide Social Security and Medicare coverage and benefits for individuals who work for themselves. Self-employment income is the net income from a trade, business, or profession operated by a sole proprietor or partnership even if the business is full-time or part-time. They are exempted because they are employed by others.
Some groups who are exempt from self-employment tax includes:
1. Non resident aliens
2. Aliens who work for international organizations and foreign governments 3. Members of certain religious sects who meet requirements and waive all social security benefits etc.
