I have to pay them as well as pay my share of employer taxes, provide some level of benefits and pay them a wage that they can live off of.  

Or are they still in your employ, but you are no longer filling the functional role of GC? 

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRAL LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

@Danny C.The following IRS website covers the various self-employed entity types. https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

In this process I was trying to zero in on locations/cities where ROI on multifamily rental properties is good and stable with potential uptrends in rent rates and value appreciationI have shortlisted few cities and would like to analyze the below criteria to decide on ROIUpcoming neighborhood preferably at least a B location with less Vacancy rateNext 5 year economic plan for the location should have good developmental projects (schools, employment, transportation,  major private industry player has plans to invest in the area etc)What are the resources that I could use to get info on the above?

I've been doing small business (somewhat successfully) over the past 6 or so years and currently employ in excess of 60 people when considering full-time, part-time, virtual assistance and contractors (not to be confused with GC's).

I am self employed as an early childhood educator and my goal is to generate income from real estate that surpasses my current income so I can go full time in real estate.

I also think it's a great location for renting, given it's access to I24 and employers in the area.

The problem is: if I do this I'll be paying Uncle Sam a lot more in self-employment tax (I'm self-employed).

Headaches from what I can tell she doesn't employ a professional property manager just a business manager not sure how hands on she is.