Re:your time is the real cost (Score 1)

Without a doubt, terpia is correct about the hidden cost in time. Whatever money you may think you're going to save the lawyer and accountant you will need to keep in contact with, and _keep_ in contact with as laws and regulations change, will eat into any financial difference. You're also suddenly the first person cut in any economic bad time since external staff is simple overhead to reduce. I'd stick with the W-2 position unless you're exceptionally skilled in some area simply for the added job protection, reference to the current market conditions. Certainly if this is your first position out of school you'll want all the protection you can get.