I've done a lot of research on this for other business ventures. There's a way you may be eligible to put away that $30k/yr. It's called a Solo or Self Employed 401(k). The following is from http://www.smsmallbiz.com/The_Solo_401(k).html:
"Enter the solo 401(k) plan. For those who are looking to max out their contributions to a deductible retirement account, it's a major improvement. The reason: With a solo 401(k), annual contributions consist of two parts. And in this case, two is definitely better than one.
First, you can contribute up to 100% of the first $15,500 of your 2007 compensation or self-employment income ($20,500 if you'll be 50 or older at year-end).
And there's more: You can contribute and deduct an additional amount of up to 25% of your compensation income, or 20% of your self-employment income. This second part of your annual contribution is like what you can do with a traditional small-business retirement plan (mentioned above).
To see how the two parts stack up, let's go back to our examples.
Your corporation pays you $80,000 this year. The maximum deductible contribution to your solo 401(k) account would be a whopping $35,500 [$15,500 + (25% of $80,000)]. That's a lot more than the $20,000 you could contribute to a traditional plan (25% of $80,000).
Now say you earn $80,000 from your sole proprietorship. The maximum solo 401(k) contribution would be an impressive $31,500 [$15,500 + (20% of $80,000)]. With a traditional plan, your maximum contribution would have been a mere $16,000 (20% of $80,000).
If you're 50 or older, your maximum solo 401(k) contributions for 2007 would be $40,500 [$20,500 + (25% x $80,000)] and $36,500 [$20,500 + (20% x $80,000)], respectively. "
Fidelity Investments answers many questions about this type of 401(k) at
http://personal.fidelity.com/product...sr?refpr=sb006
They'll take care of all the paperwork making setup a snap. Plus Fidelity provides a host of investment options.
You must designate in writing before the end of your tax year that you're making the elected deferral (that's the $15,500 portion). The Solo 401(k) relatively new and IRS approved (see IRS Publication 560). And all contributions are tax deductible!
And I just realized, here's a reason for incorporating that finally makes sense as you can contribute more if incorporated!