I just got my taxes back from my tax man. I had a friend over and she was horrified at how much my self-employment tax is. She told me that her mother is self employed and her cpa set her up on a different deal. This is the best I understand it. You set yourself up as an S corp. You then pay yourself a small monthly salary on which you pay income and SE tax. The rest of your money is paid through dividends or property distribution on which you pay income tax but no SE tax. If I had done this I would owe about $3000 instead of $11000. What say you?