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Independent contract consultant

I am thinking about becoming a independent contract consultant. I have been working with Lotus Notes since 1993 and have extensive experince with @Formula, Lotuscript, JavaScript, and now Java. The market is excellent for these skills. What should a contractor look out for? Tax IDs, contracting directly with companies, subcontracting through a consulting company. Are there any good sources to research?
Before jumping into contracting, make certain the market is hot. The market in many areas is very tight, rates are falling and with some recently laid off workers also looking at contracting for the first time, the market will get worse before getting better. However, if you are confident in the market, you should next research the life of a contract worker by checking out these three websites, www.ceweekly.com and www.contractprofessional.com and lastly www.topechelon.com/contracting. These sites will deal with tax & legal issues, have solid articles of interest and some will have job postings.

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