USA Minimizing tax burden via corporation?

[brettadams]

I have been working for the same guy for nearly 7 years, I have been a W2 employee for majority of the time however, yesterday he game me the option of staying a W2 employee or switching to an Independent contractor (1099). He outlined the benefits for both. Normally I wouldn't even swap from W2 employee, however I am a volunteer firefighter and trying to go career, as well as I am trying to build my own business, and this would allow me to open up my schedule and work for this guy whenever I want.

My question falls to the area of what can I do to minimize my tax burden. I have read a little about it and have read that I can setup a corporation in order to place that income into and all of my business income into, and it will limit tax liability on both.

Am I mistaken? Are there better ways?

Thanks,
Brett