It is very hard to have a full-time permanent contractor not be considered an employee under the IRS. You have to be very strict about your dealings with the co

It is very hard to have a full-time permanent contractor not be considered an employee under the IRS. You have to be very strict about your dealings with the contractor and your interaction with them on a day to day basis. Most people get away with 1099ing their contractors. You will not be blackballed. When you're asked why you're unemployed just say "I filed an SS-8 and they fired me." Any good employer wont care.