You should contact a an approprite lawyer in your state to ask these questions.  While we may have ideas, or even experience - it would only apply to our specific situations - and whereever you are may have dfferent regulations.  Taking advice from the wrong area might leave you in hot water - even if you are trying to do the right thing.

As for the "indepedant contractor" route for field techs.  I know that years ago many of us accepted work that way - but then things (laws I believe) changed and it was less likely to occur.  Part of the issue was making companies more responsible for their employees (contractors are not covered by Workers Comp and various other regulations).  Another part of it was aimed at helping the techs directly - with eligibility for unemployment benefits, etc.

Good Luck

Sure. If you get yourself an LLC. Hope you saved your receipts, that's bank!

There are many tax and liability implications between going the sole proprietor vs. LLC route.  I'd recommend contacting your local chamber of commerce; in my area, they routinely hold "starting your small business" classes.  They can also refer you to an attorney who can help you get started.  The laws will vary widely between states and municipalities.

I didn't realize CRM firms still hired techs as independent contractors -- I remember this being somewhat common about 10 to 15 years ago.  I was under the impression that was a quasi-legal practice used by firms to avoid paying workman's comp, FICA, Medicare, unemployment, etc.  It shifted the onus onto the tech, who in all likelihood didn't pay the additional taxes or get the additional insurance.

On the other hand, I know several people who incorporated and run their own archaeological sub contracting services out of their home offices -- faunal, lithics, e-bot, etc.  They often work for much bigger companies as they can do analysis/write up for significantly less than in house because of the reduced overhead associated with being an independent contractor.

Suggestion, look into this book: http://www.amazon.com/Small-Operator-Start-Business-Trouble/dp/0917510305/ref=sr_1_2?s=books&ie=UTF8&qid=1282007911&sr=1-2

Thank you everyone for all the wonderful information.  I very much appreciate it.

M,

Next time youre at R***n talk to Nan about this, she'll have the employer answer to this very legal question; they know because there was a huge tax stink about this a few years ago when companies were trying to fire everyone, then hire them back as independent contractors. The gov basically said, if I'm not mistaken, that if the employee is using company space and or equipment then they are an employee....

Thanks FireArch,  I'll be sure to ask her next time I'm at the office.