The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: thenewdeal on October 03, 2013, 01:40:44 PM
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Greetings MMM Members-
I've recently started looking for new employment to increase my stache. I've found that I can command a significantly larger rate by going corp-to-corp as opposed to W2 contracting. With most companies I've interviewed with, because I pay for my own individual healthcare, it's advised that corp to corp may be a better option for me. Can anyone provide any links or insight as to the benefits of corp to corp contracting versus W2?
Thanks!
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Well here's a link:
http://www.biztaxtalk.com/node/3
I think that lays out a bunch of the pros/cons, the only think I'll add is that when you're interviewing with companies and they are pushing you towards corp-to-corp, it's not only out of benevolence and looking out for your best interest. I think from the company's perspective, it simplifies/reduces taxes and administration for them considerably, and reduces the risk that the IRS would decide you're not an independent contractor after all and are subject to a slew of tax, benefits, and labor laws that could cause major headaches and costs for them in certain situations.
That isn't to say they're trying to fool you--in a bunch of situations (maybe most) I think corp-to-corp is also better for you. When I did some independent contracting, I did corp-to-corp. Just understand that there are other motivations at work here as well.