C2C stands for "Corp-to-Corp" or "Corporation-to-Corporation" and is a type of working arrangement in which a worker is an independent contractor who provides services to a client company through their own corporation. In this type of arrangement, the worker is responsible for paying their own taxes, benefits, and other expenses, and they are not eligible for any benefits from the client company. To work under a C2C position, the employee must have a business S-corp or an LLC. C2C workers are responsible for finding their own clients and managing their own finances, including paying their own taxes and benefits. C2C working arrangement is preferred by companies that recruit people for short-term contracts.
Here are some key differences between C2C and other types of employment arrangements:
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W2: W2 is a type of employment where the employer withholds taxes from the employees paycheck and provides benefits such as health insurance, paid time off, and retirement plans. In contrast, C2C workers are considered self-employed and are responsible for paying their own taxes and benefits.
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1099: 1099 is a type of employment where the worker is an independent contractor who provides services to a client company. However, unlike C2C, 1099 workers do not need to have a business S-corp or an LLC.
C2C employment can be an excellent way for workers to be their own boss, set their own deadlines, and work with multiple employers if they want to work with others also. However, C2C workers do not receive benefits such as health insurance or retirement plans from the client company.