The Business license is a smoke screen the company thinks will help it getting around the independent contractor vis employee. The IRS has a hole list of what makes an independent contractor vis an employee and not anywhere on the list does it mention a business license. It talks about who determins what is to done and when and for how much. It is correct that as an employee the employer will pay have your SS and Medicare and as an independent contractor you pay the hole thing. But also remember that as an independent contractory there will be no Workmans Comp, no Sate disability and no unemployment. But bottom line is if you need the job you have no choice. Good luck.