@Stacey I appreciate the explanation for the -1. There are many ways to "freelance" which does not always mean a 1099 independent contractor. I did "freelance" IT for almost 10 years and many of the jobs I took were W-2 "employee" positions. There are lots of wonderful tax reasons for an IC to negotiate a W-2 relationship with a prospective business client. So I would argue that my answer is not incorrect, but perhaps incomplete. I should have done some research on other IC tax relationships, many of which are probably covered under international trade agreements.

@jmort253 That's a very thorough answer to the other question. However, my concern is that because there is such a tremendous industry standard (evidenced by the written contracts) of assigning ownership to the person hiring the contractor, a judge can easily rule in the client's favor regardless of the technical interpretation of the law. I have seen it happen. It's a sticky situation and I would not encourage the asker to make it any stickier by assuming ownership and making money off of the property. At the very least, he should consult an attorney first.

You have to be really careful about this. In many cases, when you are hired to develop an IP, the person hiring you owns the IP, not the developer. This is the case in almost every job I have worked at (in the USA) and has such a long history of legal precedent that any court will likely rule that the client owns the IP if there is no contract stating otherwise. However, the client can not do anything with source code and byte code that they do not have, and you can certainly withhold both until you receive payment. But you risk a huge legal mess if you try to use it or sell it yourself.

#3 is probably one of the best ideas I've read, here. Giving the client a second opinion from a third party is an excellent strategy. Unless the third party you get to provide that opinion actually figures out how to do it >.<

@EdwardBrey I've frequently seen such clauses in contracts, such as software EULAs, that acknowledge that certain portions of the contract may not be valid in certain jurisdictions. As far as knowing when it's a DIY contract, my biased DIYer opinion is that almost everything is a DIY project as long as you have the time to do it. Simple verbal contracts are enforceable in most jurisdictions. Written contracts are meant to protect you and your client, so keep that in mind and it should be sufficient and is most likely enforceable. Knowing specific jurisdictional requirements means homework.

Just an FYI I've added a new answer to that older question. Hope it helps :)

@NeilRobertson What you need, then, is a way to bill for the time you spend distracted and over-developing. You can over-sell in the beginning of a project so that your "unbillable hours" are factored into your price. You can also divide the project and separate the "over-delivery" into a second project - an "upgrade" you can sell the client later. And I heartily recommend isolating a few tasks to scheduled periods - "staying current" and marketing (social media etc) for sure. And do your absolute best to limit how much free advice you give; free advice should only be a marketing tactic.

I should also second Scott's comment - this is way longer than I intended at the start!

@moonstar2001 So far the best you have is Santa's comment on your original question. From the research I did, it seems that bulk of the paperwork is handled by the employer, so sign and submit what they tell you to sign or submit. If you can talk Santa into elaborating his or her (internet gender is so confusing >.< ) comment into an answer...

FYI, verbal contracts are legally binding in most jurisdictions. It'll be a battle describing the terms of that contract to a judge, but it's still a binding and enforceable contract.

I did some homework :) Having the US<->India example makes it easier to be specific