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As the employer, you can contribute up to 20% of your self-employment earnings or 25% if your business is incorporated, says John Heywood, a principal at Vanguard Group's retail-investor unit.
WSJ: Conquering Retirement; Savings Plans for the Self-Employed
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Next year you'll be able to deduct from your self-employment earnings 100% of the health insurance premiums you pay, up from a 70% deduction this year and 30% in 1996.
FORBES: Self-Employment
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Caution: While LLCs are popular these days, it is unclear under current law whether owners are liable for the self-employment tax on all their earnings, or on just the salary they take out.
FORBES: Investment Guide: Self-Employment
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Further, each domestic partner must pay self-employment tax on her half of business earnings, a situation from which a special provision protects opposite-sex couples.
FORBES: DOMA's Tax Hassles for Same-Sex Couples
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In contrast, earnings attributed to a sole proprietor, general partner or many LLC members are subject to self-employment taxes.
FORBES: Senate Proposal for Tax Reform Part II: Democrats Seek To End S Corporation Payroll Tax Loophole