Originally Posted by Business-Bytes

If you are a freelancer or "self contractor" i.e. independent contractor, this is considered self-employed income and subject to self-employment (SE) taxes, therefore you would need to be setup as a business. Maybe think of it this simplified way: income comes from either being a self-employed business owner or from W-2 income as an employee. Self-employed, you pay your own SE taxes for your business income. Employee that gets a W-2, your employer withholds and pays taxes for you from your paycheck. Some helpful information from the IRS on starting a business. The other Julie gave you some good information on what types of business entities there are. I've always been a sole proprietor and file a Schedule C as part of my 1040 tax return. You can use your social security number, but I also agree that you should get an EIN (FTIN). More info here on how to apply, etc. HTH a bit,

That link was exactly what I was looking for. Great info, esp. since it's from the IRS directly. Thanks!