You won't be eligible for fringe benefits, you'll pay double the normal Social Security tax, and you'll have less job security. But you'll be able to deduct business expenses on your tax return more easily because you'll technically be self-employed, so a home office, for example, is more likely to qualify as deductible. You may have a greater ability to save for retirement. And if being in business for yourself appeals to you, this is a way to get going. There are risks.
Advisers suggest lining up additional clients ahead of time or dealing with several at once.
Be sure that any agreement is firm, and be clear on compensation and other terms. The Internal Revenue Service is wary of people who call themselves independent contractors. One reason is that the Treasury gets a quicker and firmer grasp on tax from employees, since tax is withheld from paychecks but not from payments to the self-employed. As a self-employed person, you will have to wade through the requirements for making quarterly estimated payments of tax. Your client, meanwhile, will benefit by avoiding the legal and financial ties that bind employee and employer.