Any help would be greatly appreciated!

NeedAdviceNeedAdvice subscriber Posts: 2
edited August 2016 in Business Planning
Hello,

Currently I work for a company who provides "contractors" to other companies as they need them for Software Development. I am currently at a company who has long-term "contractors" (some have been there for 10 years). For whatever reason, the company does not wish to hire these people full-time.

I recently heard of "corporate to corporate". I haven't had much luck finding information about this online, but from what I have heard, I could potentially create a corporation of just myself and have the company contract me directly. This way I would get the money that would normally go to my contracting company, instead of getting a smaller portion.

Does anyone have any advice or experience in this?

Any help would be greatly appreciated!

Comments

  • Ankita1234Ankita1234 subscriber Posts: 49 Bronze Level Member
    Company first see how much experience you have in these field so that company could invest in you. If you have a lack of experience and you are trying to get big contracts, it affects your image in the industry.
  • Kent DagnallKent Dagnall Atlantaadministrator Posts: 5 Site Admin
    I think you are on the right path. Talk to your tax professional and attorney about forming an S-Corp and invoicing this client directly. I've had experience with these "Recruitment Agencies" that provide dubious benefits. They may be a good way to find work initially, just make sure you read everything before signing it, or you may get caught up in non-compete clauses and other complications if you want to strike out on your own. Of course you wouldn't want to burn any bridges when you're just starting out, so proceed with care NeedAdvice!
  • Declined PaymentsDeclined Payments subscriber Posts: 1
    I did extensive research on creating my own Staffing Company last year. Until I actually went through the actual business plan on paper, I never realized my biggest exposure. I will use a Technology PM as an example, if he/she is at $100/hour, you have to have 2 months of salary ($32,000) available because C2C billing would mean you won't get paid for 60-90 days. Contractor expects to be paid, weekly or bi-weekly - he/she works 30 days, you invoice for the 30 days, then payment terms are net 30 (if you happen to get paid on time) If you get 3-4 people, you need to have a good financial cashflow to do this.
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