Thanks for the great advice! I am in Ventura/Oxnard area and prices are way too overpriced here. Heck at least San Diego was a nice area! Oxnard is a shithole and only reason I live here and rent a room is to save money on the project.
I sent my boss the link on 401k plans and will work with him to set it up for employee/consultants. As for the home office deduction, I can use that per advice from my CPA in San Diego and since I keep a residence for time being still in San Diego I get a good break on taxes up to 1 year using per diem rates.