W2 or corp 2 corp ?

[gluck]

I consulting for company that gave me an option of going either corp2corp or W2. The term is 6 months and the difference between the two is $5/hr. Is $5/hr worth the hastle ?

 

[gluck]

Anyone ?

 

[Mermaidman]

If you're going to consult for a while (beyond the six months), it's worth while to incorporate. I've run across potential contracts that required incorporated consultants. Also, $5/hr over six months can add up to a lot depending on your hours!

Besides, don't you want to be a CEO or President of Gluck, Inc?

 

[mugs]

That really depends on what the $5 difference is between. $95 and $100? No.

 

[EagleKeeper]

Take a 1099 if possible. If you are forced to do a corp-2-corp, you may be required also to provide some insurance ($150/year est) plus the inital costs of incorporating.

Allows you to write off the deductions all over the place.

The only other difference (unless they provide you with some benifits) is that they are covering the employer side of the SS 7.5%.