Start a business just so I can have a Solo 401(k)?

[Paul B.]

I searched through the existing discussions as best I could to make sure I wasn't asking a common question...and I just didn't see it. I believe have learned the ins and outs of a Solo 401k. The reason I want to have one is that a typical self-directed IRA is subject to taxes because I intend to use it for passive investments in debt-financed multifamily deals. So a Solo 401k is the way to go for me. But, I have also learned that not just anyone can have one. In fact, I wondered why everyone doesn't do it instead of an SD IRA because there seem to be many advantages. Turns out I need to have some self-employment income, although there does not appear to be strict criteria on what that constitutes. It seems a good rule of thumb is that I am declaring some sort of income on my taxes. Just creating an LLC and calling it a business is not enough.

I work a W-2 job which I do not intend to leave, and it takes up a lot of my time and energy, which is why I am only passively investing in real estate at this time.

So, has anyone taken steps to become self-employed just for the sake of having a Solo 401k, because it has so many advantages over an SD IRA?