Solo 401k unavailable if have any business with employees?

[Todd Willhoite]

I have a business with no employees for which I want to establish a solo 401k.  I have another unrelated business with one full time employee.  My wife has a business with four full time employees.  Under the Controlled Group Rules I guess that I am unable to establish a solo 401k in the business with no employees because I am deemed to own 100% of my business with an employee and my wife's business.  Is there anyway the business with no employees can establish a 401k?

I see the benefit of a 401k to me in avoiding UDFI tax, not really for the tax deductions. I have an IRA that I could role over to fund the 401k.

If I can't form a solo 401k, are there any affordable 401k plans for small businesses?