Author Topic: Tips for Corp to Corp Consulting  (Read 1655 times)

thenewdeal

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Tips for Corp to Corp Consulting
« on: October 03, 2013, 01:40:44 PM »
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!

ShavinItForLater

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Re: Tips for Corp to Corp Consulting
« Reply #1 on: October 03, 2013, 08:03:16 PM »
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.