 The LLC doesn't do anything. You'll pay self-employment tax. If I were you, my side hustle right now would be to build a great handyman business so big that it forces you to quit your tiny little job, and then this whole thing has nothing to do with nothing. This whole discussion about a 401K goes away because you're going to be making so stinking much money running your own deal. The generous 10%, truthfully, is $5,000 a year right now with your income.