running a 1099 consulting company means you receive annual tax forms from various contracts listing the amount of money they paid you that year. your clients are required to send you a 1099 when you earn $600 or more in a year. as a 1099 consultant, you and your staff typically have written contracts with clients and freedom to work for other clients. you usually don’t get benefits when you work as a 1099 consultant but may merge with other freelance consultants to purchase discounted medical coverage. as an independent contractor, it’s up to you to define the methods you utilize to complete your projects and contract obligations. you decide when to work, what tools you’ll use and where to perform your duties. the only restraints you have in running your business are the final obligations you make to your clients and what agreements you make in your contracts with them.