I would imagine most software "contractors" that work for a major company are not 1099 - that carries a bunch of risks. Most "Contractors" are W2 employees of a

I would imagine most software "contractors" that work for a major company are not 1099 - that carries a bunch of risks. Most "Contractors" are W2 employees of a labor for hire company. That still seems perfectly legal. "Hiring entity" would be Big Staffing Company, your customer would be Big Internet Company.