Well thanks to BHW, I've opened a webdesign and SEO company. I have clients who all want logos done as well. I am proficient with Photoshop/Illustrator, but i just don't have the time because I am a full time student trying to go to class and make & rank 2-3 sites a week. If I hire an old friend for freelance work (NOT on my payroll) I know I can write it off as an expense but what do I need to do to cover myself? Can I just give him a 1099 and whether or not he reports it is up to him?