1099
In a nutshell:
When you work as an independent contractor for a company, then you get a form 1099 from your client for the amount they paid for your services. That means you dont get a W2 form at the end of the year like a salried person does any more. The company does not withhold your taxes, does not pay you any benefits, etc. What you get is waht is in the contract between you and the client (whether hourly rate or lumpsum amount, etc.)
You pay all your taxes to IRS and state boards directly, and you use the 1099 in your tax return.
There are lots of web sites which discuss the pros and cons on 1099, W2 , corp-corp, etc. Normally, I just use google to search for 1099, independent consultant, etc. keywords and gets tons of stuff
Happy surfing
