You list 3 benefits: no self employ tax, cheaper healthcare, 401K, vs. 5 drawbacks: higher daycare costs, commute, wardrobe/lunch expenses, lack of flexibility, and loss of time with kids. Three of the drawbacks could be serious hits to your quality of life, as very few people are genuinely okay with longer commutes, less scheduling flexibility, and less time with family. Seems to me like you might already know the answer to your own question for the time being...