I just can't believe how different the 1099 rules are viewed by some, many trades do issue 1099's for workers, I would not want to pay their their comp insurance payments, or leave my business in a constant audit position 1099 away!
The difference is justified as the rules vary from state to state.
In Indiana, since I don't need to be licensed, I could legally do work and get paid with my income being reported via 1099.
In Michigan, since I need a license to do electrical work and the rules say I must be paid by a licensed contractor as a 1040 employee, I could not do any 1099 work under my license.
IF a person is a licensed contractor AND a licensed journeyman or master, he may legally be paid 1099 income so long as the billing is done in the legal name of the contractor. For example, Joe's Electric, a one man show, can get paid 1099 compensation. Joe Shmoe, the one man in the one man show, could NOT get paid the same way. Instead, he would have to get an employee check with all the goodies taken out from Joe's Electric made out to Joe Shmoe.
The rules for auto mechanics are very similar. I owned a licensed repair facility and was a licensed master mechanic (automotive and marine electrical systems specialist) here for a decade or so. I could bill as my business and get a 1099, but it was illegal for me to bill just as a master and get a 1099 as the master had to be a 1040 employee of the company.
I remember the first time I wrote myself out a paycheck and signed both sides and cashed it. It was ironic and rewarding at the same time. Ironic in the fact that I did all the work and finally got the dough, but to be legal I had to play musical bank accounts which detracted from my take as I did not have a way to charge myself for the extra paper work and math I had to do and make that work contribute to a positive cash flow in order to get my own money from myself.
But, if I didn't do it that way the state would have closed my business down and pulled my license. Since the licensing structure is even more strict for EC's, with permits and all, I would hazard to think that the state would be just as vengeful for EC's as they are for auto mechanics.