Contracting in DFW

[CWells2345 -at- AOL -dot- COM]

I have what I believe is a unique situation in contracting. For the last 2
years, I've had a contract that kept me on retainer (guaranteed a certain $
amount on the 1st and 15th) and that let me work at home. I provided my own
equipment and paid my own taxes. This was wonderful, but all good things come
to an end.

Now I have a contract where I earn a higher hourly wage, but it has periods
of feast and famine. I still work out of my home, and I'm trying to line up
another contract to take care of the famine periods associated with the
first. I'm following the advice given in the previous contracting thread, but
I have the following question.

I want to continue working independently and ideally out of my home office;
however, if the project seems interesting I'll go back corporate America.
Recruiters tell me they only place W2 contractors and there's no way I can
work at home. They say I need to be incorporated, pay workman's compensation,
and general liability insurance. This can get very expensive!

Can anybody give me information on how they handle these issues?
Do I really need all this stuff or are recruiters just trying to get an
employee?
Am I attempting the impossible in DFW?

Incidentally, I'm not a novice. I have 9 years technical writing experience
with some of the major tools; however, I neglected professional networking
(really wish I hadn't now). What can I say, the 2 year contract made me more
comfortable than I should have been.

Thanks in Advance
CWells
cwells2345 -at- aol -dot- com

 TECHWR-L (Technical Communication) List Information: To send a message
to 2500+ readers, e-mail to TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU -dot-  Send commands
   to LISTSERV -at- LISTSERV -dot- OKSTATE -dot- EDU (e.g. HELP or SIGNOFF TECHWR-L).
  Search the archives at http://www.documentation.com/  or search and
browse the archives at http://listserv.okstate.edu/archives/techwr-l.html