Thanks for the Intuit suggestion – flu, Allan. The payment processing options sounds like what I am looking for. The cost also appear to be less than someone like Insperity (though they do more than payroll/tax compliance).

spdrun – I am not sure what the definition of true independent contractor is. Here is our scenario, as a group of friends we often work on the same projects with each of us with a separate independent contractor (mostly set up as sole proprietorship) contract.

Since we are planning to change our business entity to llc, we are looking at options to form a single business, where each of us are an employee.

If our plans are crazy wrong, please chime in with alternate solutions!

PS: My responses might be slow, as I have to periodically check if there are any new posts in this thread.