How does C2C (corp to corp) work ?

Question

Can anyone explain how C2C contracts work ? For someone who owns a domestic profit corp but doesn't have a ssn.

Answer 1

A C2C contract is a an arrangement where a corporation that has a job hires another corporation to hire, insure, and take care of the tax and legal responsibilities of hiring an employee to fill this job.  For example, ABC Corp. wants to hire a programmer for 6 months but doesn’t want to deal with all the HR issues.  So ABC Corp. contracts out the position to XYZ Corp.  XYZ corp. finds and hires someone that can fill the requirements.  After an interview, if ABC Corp agrees to take on this individual then XYZ Corp. handles all the tax, insurance, and legal paperwork with the programmer.

If XYZ Corp. is a legal US corporation then they will have a federal id number.  If the programmer they hire does not have a SSN and they want them to work in the US then XYZ Corp. will need to obtain a work visa and sponsor this individual which can be a very expensive and time consuming process.  Make sure you get a good lawyer that can advise and help you.