You pay taxes at the higher ordinary income rate, you pay social security tax as an employee and employer (ouch) you get really no tax benefits and no long term financial benefits.I have a few BP blogs that may give you some ideas.  

You are taxed at the high ordinary tax rate, have to pay into social security as the employee and employer and you really get no real tax benefits.  

The facility I work at has been hiring 20-30 employees a month and cannot fill our need with ideal candidates.  

If so, chances are they will not let you roll it into a SDIRA.Also, if it is from an ex-employer and you are self employed with no other employees (except your spouse with certain conditions), you can look into a solo 401k.

That includes making sure that he is truly an IC and not an employee.  

I have a full-time employee working on finding deals like this.

page=1https://www.biggerpockets.com/forums/48/topics/429980-officially-financially-free-at-32----exciting-dayhttps://www.biggerpockets.com/forums/223/topics/445367-full-time-employee-multiple-brrrr-side-hustle-2875-to-goalAs to your NYC rental, if it appraises for $650k, and you took a 75% loan, you'd have $162k of your own money tied up in it, but about $150k of that is your appreciation since you owned it.

Here are the correct eligibility requirements:- You must have legitimate self-employment activity or small business with earned income- You can not have any full time employees working for you (this does not include business owner(s) and his/her spouseIRS defenition of full time is someone working for you over 1000 hours per year.I wrote an article specifically to address the misconception about eligibility for a Solo 401k plan on BiggerPockets blog, here it is:https://www.biggerpockets.com/blogs/2810/45144-the...Let me know if that makes sense and if you need any further clarification.

What if the job requires him to pay an employee?

Fortunately, I had enough money to cover the second down payment in my TSP account (similar to a 401K for federal employees).