Carl, thank you for your answer and information. I agree that the "gift" scenario (#1) I mentioned may cause other "issues" and was just exploring it based on other things I read, but don't feel comfortable pursuing.
Thank you for the link. It did somewhat help to clarify some of the info in the IRS Publication 926, but I'm still not sure how to classify myself (ie self employed or household employee) and I'll keep searching for more info.
