I am a free-lance make-up artist in the Washington DC and surrounding areas. I worked for a company and I was told by them after the fact that I could not invoice and I had to submit their timesheet as an employee and have payroll taxes deducted. They said they had been audited by the IRS and they were told by the IRS that they are held responsible for persons they hire when those persons are not an INC or LLC. When I file my taxes I use 1099's for documentation so I don't understand how they are responsible for my taxes. The problem for me is that as a make-up artist there are certain write offs that I need to make in order to function as a free lancer and I won't be able to do that if I am receiving a W-2 as if I am an employee. I need to know what my rights are and if I need to become an LLC to continue doing business as I have been?