Corp-to-Corp

Tax Terms in US Staffing | C2C | Corp-to-Corp 

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                                Detailed Information

Contract - Corp-to-Corp
Definition of C2C: Any employment where the contact is between 2 corporations (companies) is called C2C (Corp-to-Corp).

In other words, in The C2C (Corp to Corp) the client, a corporation (company), pays the business entity of a US Citizen or Green Card Holder, which is organized as a corporation, for the services rendered).

 

C2C (Corp-to-Corp) employment contracts can happen in 2 cases.

Case – I: If Any U.S. Citizen or Green Card Holder can register (incorporate) a company. Usually, US people register a company to avail of tax benefits or save tax.

Case – II: Second case of C2C when a client company hires a consultant with an H-1B VISA.

Payment Terms of C2C: In the C2C scenario the client company pays the consultant’s company directly and does not deduct any tax amount, as payment of tax is the liability of the corporation rendering services, etc.