What You Need to Know About C2C Staffing: How It Works and When to Use It

If you’ve ever hired tech talent on a project basis, chances are you’ve come across C2C staffing. Understanding how C2C staffing works is key to navigating today’s flexible hiring landscape.

In this blog, I’ll walk you through the essentials of C2C staffing, explain when it’s the best option, and clarify some of the confusion surrounding it. Whether you’re a recruiter, staffing firm, or business owner, this guide is here to simplify a sometimes complicated topic.

What Is C2C Staffing?

C2C, short for Corp-to-Corp, is a hiring model where a company (typically a staffing firm or agency) hires another company (usually an individual operating through a registered business entity) to provide services.

In plain terms, instead of hiring a worker as a W-2 employee or a 1099 independent contractor, you engage with their corporation—such as an LLC or S-Corp—to deliver work under a contractual agreement.

The professional doing the actual work is still a person, but legally, you’re contracting with their business entity.

How Does C2C Staffing Work?

Here’s a simple breakdown of how C2C staffing works:

1. The End Client Has a Requirement: A company needs a contractor for a specific tech project or role.
2. The Staffing Agency Gets Involved: The staffing agency sources candidates who are set up as registered businesses.
3. The Contractor Has a Company: The contractor (or candidate) is incorporated as a business entity (like an LLC).
4. A Contract Is Signed Between Two Companies: The staffing agency and the contractor’s company sign a B2B contract. The contractor performs the job, but it’s their business that gets paid.
5. The Contractor Is Responsible for Their Own Taxes and Benefits: Since they’re not on payroll, they’re in charge of their taxes, insurance, and retirement planning.

This model is particularly popular in tech staffing, especially when working with highly skilled professionals who prefer to work independently through their own businesses.

Why Do Businesses Use C2C Staffing?

There are several good reasons why companies and staffing firms turn to C2C staffing:

1. Reduced Employer Responsibilities

When you hire on a C2C basis, you’re not responsible for payroll taxes, benefits, or compliance with certain labor laws that apply to W-2 employees. That means less administrative burden for your team.

2. Access to Specialized Talent

Many highly skilled IT professionals prefer working under their own corporation for tax reasons or autonomy. With C2C staffing, you gain access to this pool of independent experts who might not consider a full-time role.

3. Speed and Flexibility

C2C contracts can often be deployed faster than traditional employment agreements. Need a cloud engineer or DevOps consultant next week? This model allows for quick onboarding and minimal red tape.

4. Lower Long-Term Costs

You may pay a higher hourly rate, but in the long run, C2C can be more cost-effective than hiring a full-time employee with benefits, bonuses, and long-term commitments.

When Should You Use C2C Staffing?

It’s important to know when C2C is the right fit. Here are some situations where it really shines:

1. Short-Term or Project-Based Work

If you’re working on a 3–6 month project that needs specific expertise, C2C staffing gives you that talent without the long-term overhead.

2. Specialized or Niche Roles

Tech roles like AI/ML engineers, cloud architects, or cybersecurity consultants often come with a hefty price tag and limited availability. Many of these professionals prefer working independently via C2C arrangements.

3. Need for Fast Deployment

When you need someone yesterday, C2C allows staffing firms to deliver pre-vetted professionals who can start quickly, often within 48 hours.

4. Budget Control

Hiring through C2C lets you control costs with clear hourly or project-based rates, no surprise bonuses, or benefit packages to account for.

What to Be Aware of Before Using C2C

Even though C2C staffing comes with advantages, it’s important to be aware of a few considerations:

1. Legal & Compliance Responsibility

While you’re not hiring the contractor directly, you are still entering into a contract with their company. It’s crucial to ensure that all paperwork—MSAs, NDAs, and insurance coverage—is in place.

Working with a trusted staffing partner (like those specializing in compliance and visa management) can make this easier.

2. Work Authorization Issues

If the contractor is on a visa (like an H-1B), C2C can get complicated. You’ll need to ensure their business entity is eligible to work and that all immigration rules are followed.

3. Onboarding and Offboarding

Because they’re not employees, C2C workers may need different onboarding steps. You’ll also need to handle offboarding professionally at the end of the engagement to maintain a good relationship.

W-2 vs. 1099 vs. C2C: What’s the Difference?

Here’s a quick snapshot to help you understand how C2C staffing compares to other models:

Model	Relationship	Tax Responsibility	Benefits Provided
W-2	Employee	Employer	Yes (health, 401k, etc.)
1099	Independent contractor	Contractor	No
C2C	Company-to-Company	Contractor’s Company	No

C2C gives both the client and contractor more autonomy, but it comes with a need for clarity and good documentation.

Who Should Consider C2C Staffing?

C2C staffing isn’t just for big tech firms. It works for:

• Staffing Agencies: Especially those filling high-demand tech roles.
• Startups with Lean Teams: Who want to avoid the complexity of hiring full-time staff too early.
• Recruitment Process Outsourcing (RPO) Providers: Looking to expand their contractor base.
• Hiring Managers in Enterprise IT: Who need rapid deployment of specialized skills.

Quick Checklist for Using C2C Staffing Effectively

Before you hire on a C2C basis, ask yourself:

• Are we clear about the scope of work?
• Has the contractor submitted business registration and insurance documentation?
• Is the contract (SOW/MSA) detailed and legally sound?
• Is the contractor authorized to work in the U.S. under their entity?
• Do we have a trusted staffing partner to help with vetting and compliance?

If you’ve answered yes to most of the above, then you’re ready to dive into the world of C2C staffing.

Final Thoughts

C2C staffing can feel a bit confusing at first, especially if you’re new to it. But once you understand how it works, you’ll realize it’s a smart, flexible way to bring in high-quality tech talent without the commitment or compliance load of a traditional hire.

Whether you’re a staffing agency looking to scale or a business that needs fast access to skilled professionals, C2C gives you the tools to stay agile and competitive in a fast-moving market.

Just make sure you’re partnering with someone who knows the ins and outs of compliance, visa issues, and contractor engagement, because that’s where the real difference is made.