Lots of people do exactly this, as least for some portion of their finances. Buying houses through an llc and renting to oneself is not uncommon. You lose the tax benefits of interest deduction, but if you're paying cash that doesn't matter anyhow. Other large purchases like cars and boats are owned in similar arrangements. When you are financially independent (not working a W2 job), many of your financials are easily categorized as business-related, with all the tax benefits that incurs.
Ask Wesley Snipes how well this works out. He only spent 3 years in federal prison, a crap load of attorney's fees, and had to pay fines and back taxes.
There's a huge difference between using IRS-allowed expenses to reduce your tax bill and claiming (as Snipes' accountants did) that all domestic income is not taxable.
