I have begun to compile a list of reasons why business owners should hire 1099 freelancers as opposed to W-2 employees, and I have called it "Advantages of Hiring a Freelancer":

- No need to provide healthcare benefits
- No need to pay tax contributions
- Spend less on gas; spend more on other areas of economy
- Less time lost commuting in traffic; more time to work
- No need for middle management
- Communicate instantly via IM, Email, Text Message, etc.
- Communications can be saved for later reference
- Pay only when work is needed (eg. flat-rate or temporary hourly vs. salary employee)
- No need to worry about firing, paying unemployment, or COBRA after the work is complete
- I can work nights and weekends if I want and you don't pay overtime
- More productive, happy, and possibly long-term working relationship
- Leverage; I reserve the right to sub-contract other highly-specialized and talented freelancers to help get the job done quickly if necessary
- Save on office space
- Save on equipment costs

This is just what came off the top of my head, but I'm sure there are more.

See if you can help me add to it.