Corp-to-Corp

Corp-to-Corp, or C2C, is a type of employment classification in which an independent contractor or freelancer sets up a separate legal entity, such as a Limited Liability Company (LLC), to work with a client. In this scenario, the client hires the contractor’s LLC rather than the contractor themselves. The LLC is then responsible for paying its taxes and providing its benefits, such as healthcare and retirement plans.

For example, a QA lead may earn a salary of $120k but may have a contract rate of $70hr (gross amount $145,600)

Corp-to-Corp contracts are typically offered to more experienced contractors and freelancers who have a solid reputation in their field. They provide greater opportunities for earning more money since the contractor can set billing rates and may have multiple clients at once. Typically C2C pays the highest rate of the options. However, this type of classification also comes with greater responsibilities since the contractor has to manage their taxes and benefits.