[johnkpush]

We prefer hiring consultants who bill us as a business rather than as an individual. It's risky and more costly hiring and paying an individual consultant:

* If an individual consultant gets injured, we'd have to pay the individual's worker's comp/unemployment benefits.

* When it's B2B, we don't have to worry about 'tax nexus'. If we're based in NY and hire an individual in California, we now have to register and pay some tax in state of California. Hiring a business erases that responsibility.

* The consultants who have a business are usually more serious and mature. Invoices are cleaner and the experience is more professional all around. Sounds cliche but it's true.

Edit: formatting

[robmcm]

I find that a lot in the UK, it's a lot better to get set up as a limited company than a sole trader. Some companies and even industries won't touch you as an individual. I guess it's related to the personal liability etc