What are the advantages/disadvantages of working W2, 1099, Corp-to-Corp?
W-2 means that you are working as somebody’s employee. While it applies to someone who is a full-time employee of a company, it is more commonly used to refer to consultants who operate as migrant employees, going from temporary job to temporary job. 1099 and corp-to-corp are two varieties of independent contracting. In both cases, the person has his own business, but in the first case he owns the business (its assets are his assets, its liabilities are his liabilities), while in the second case the business is a separate legal entity (and he is liable only for what he paid to acquire its stock). A corporation can be formed as either a C-corp or an S-corp, but the distinction only affects how it is treated for income tax purposes. The principal disadvantage of working W-2 (i.e., as a migrant employee) is that you don’t have a permanent job. You are likely to be treated like an employee (e.g., you are likely to work full-time, onsite, for one client at a time), but you have a job that l
