I would not go with option 1 until: 1. You have more experience (why would someone pick you as a contractor?) 2. Get better at negotiation. Your concerns are

I would not go with option 1 until: 1. You have more experience (why would someone pick you as a contractor?) 2. Get better at negotiation. Your concerns are valid, but that you didn't have the answers is a signal you're not wise enough to go into the contracting world.