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Here's what I did when I was a consultant:

1. Set up an S corp. All contracts and such were done through my
corp, not me.

2. Hired myself and drew a small salary, but with "full everything".
I had to do social security taxes, withholding, unemployment
insurance - the works. But I only paid myself $22K so even with
this, it was still cheaper than paying self-employment tax on
the $120K or so I was making. $22K was the minimum I could get
away with based on advice from my CPA. (Actually, I set the
withholding rate such that I just paid my salary to the IRS...)

3. Drew out the rest of the income at "normal" tax rates.

4. Put as much expenses as possible in the corp, and wrote off

I did things this way for four years. This did the following:

1. Avoided most self-employment tax, which is (was?) 15.7% on top of
regular income tax.

2. Made it easier to take deductions and such.

My general advice is that a corp is good, although expensive to get
going. If you do it, set up everything separate (although this is
good anyway, even without a corp you'll need to carefully keep
expenses done on contracts organized so you can claim them as tax
deductions). As for setting up, I didn't use a lawyer and used the
Nolo Press incorporation kit, but I did have a CPA. I'd only
recommend it if you are making at least $50K or so, but it's worth
it to talk to knowledgable tax people about all this.

One thing I *do* know is that, for the checks you've already received,
you can't do them through a corp unless you can talk your husband's
company into cutting the Form 1099 they'll send in the corp's name,
not in your husband's. Otherwise, the 1099 will be in your husband's
name and social security number and you'll have to file a Schedule
C on it.

As always, standard disclaimers apply, talk to a Real Tax Person,

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