Work Off Site

If possible, do your work anywhere but at the client's premises. This shows that you are not subject to the client's control.

Of course, there are some types of work that you will have to do at the hiring firm's premises. For example, if you are hired to lay carpet or paint an office, you will have to work at the client's workplace. The IRS won't count this against you, as long as the work you do requires it.

Don't Accept Employee Status

Some clients will hire you only as an employee, not as an independent contractor. This is a particularly common problem in the high technology industry. Because the government closely scrutinizes the hiring practices of high tech companies, and because of special IRS rules pertaining to high tech workers, high tech companies are often wary of using independent contractors.

You may be tempted to let one hiring firm classify you as an employee, particularly if other firms are willing to hire you as an independent contractor. But this is a bad idea -- it will attract the attention of the IRS, which could well decide to classify you as an employee for all of your jobs.

To learn more about preserving your independent contractor status, as well as other rules for independent contractors, get Working for Yourself: Law & Taxes for Independent Contractors, Freelancers & Consultants, by attorney Stephen Fishman (Nolo).