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How Independent Are You?

You think you're freelancing. Your client thinks you're freelancing. But does the IRS?

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This story appears in the February 2002 issue of Entrepreneur. Subscribe »

Q: I am planning on doing consulting work for some associates who've started a retail business. I will be handling their advertising and promotions as an agency. They're willing to set me up as an independent contractor and give me a 1099 at the end of the year. Should I go with that option, or should I file for a business license and invoice them? If I go the 1099 route, how do I go about charging fees? I'd like to bill customers on a per-project basis.

Name withheld

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