Some clients, usually larger ones, can be risk adverse to working directly with an independent contractor. Its not hard for an independent contractor to be "in

Some clients, usually larger ones, can be risk adverse to working directly with an independent contractor. Its not hard for an independent contractor to be "independent" per these tax rules. However, many clients don't want to take the risk that the contractor is doing their end right. Whether this is real or perceived risk on the part of the client is not clear to me. The bottom line is if you are an independent contractor, you should do all your work through an LLC or S/C-Corp and manage your tax filings well. Some clients may still not accept dealing with your LLC directly and hand you a list of "approved contractors" to bill through. The only way you may get in trouble past this is if all you work is for one client and the IRS feels your really acting as an employee.