What is Corp2Corp?

Corp2Corp, often abbreviated as C2C, is a type of business arrangement commonly used in the staffing and consulting industries, where one corporation provides services to another corporation. In this setup, an individual or consultant works for a client through their own registered corporation (such as an LLC or S-corp) rather than as a direct employee or independent contractor. This model is popular in IT and professional services because it offers tax advantages, limits liability, and streamlines payment processes for both parties. However, it typically requires the consultant to have a legal business entity and handle their own taxes and benefits.