Bear in mind that while as an independent contractor, you have to pay more of your own taxes, you also get to write off any business expenses, which can more than even things out. I agree with cpcarolyn, though, that requiring a business license is to benefit the company's case that you are not a regular employee and not anything that benefits you. If you would be working in their office, with their equipment, presumably at set hours, it seems to me that you would not meet the criteria of independent contractor, and the company should know that. Just my two cents!