Corp to Corp vs W2: What’s the Difference and Which One is Right for You?
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Knowing employment classifications is very important for both contractors and employers in the U.S. staffing and consulting industry. There are two main employment models which are commonly used, and these are Corp to Corp (C2C) and W2 employment. But then, what are the differences between them? Being classified as either W2 vs Corp to Corp can make a huge difference in your tax liability, benefit options, and level of flexibility in career transfers. This guide sets out the differences between W2 and Corp to Corp arrangements providing job seekers and employers with the tools they need to select the most appropriate for their projects, legal restrictions, and financial needs. 1. What Is Corp to Corp (C2C)? A Contractor’s doing of a Corp to Corp (or C2C) model means that the Contractor operates through a business entity, such as an LLC or S Corp, and contracts with some other company or client. Working as a corporation, the worker gets to control and move freely, but also assume...