US IT Staffing

Corp-to-Corp (C2C) contracts are common in the US IT and staffing industry, where a consultant provides services through their own corporation (typically an LLC or S-Corp) rather than as a W-2 employee or 1099 contractor.

🧾 What is a Corp-to-Corp (C2C) Arrangement?

• A C2C contract is an agreement between two registered businesses (e.g., your LLC and a staffing agency or end client)

• The consultant is not an employee, but provides services via their corporation

• Most common in tech, engineering, and consulting roles

✅ Top C2C Contract Requirements in 2025

Here are the must-have legal, tax, and compliance requirements for entering into a C2C contract in the U.S.:

1. Valid Business Entity (LLC or Corporation)

• You must be incorporated in a U.S. state (LLC, S-Corp, or C-Corp)

• Provide:

  • EIN (Employer Identification Number)

  • Articles of Incorporation/Formation

  • Operating Agreement (LLC) or Bylaws (Corp)

2. Active Business Bank Account

• Required for:

  • Receiving payments

  • Paying taxes

  • Keeping personal and business finances separate

3. Valid Work Authorization

• Common types include:

  • Green Card

  • H-1B (through employer corp) — must be the sponsoring company

  • H-1B Transfer (if corp is set up to sponsor)

  • GC EAD, L2 EAD, H4 EAD, or TN visa

• F-1 visa holders on OPT/CPT usually cannot do C2C directly unless the employer is E-Verified and compliant

4. General Liability & Professional Insurance

• Some clients mandate coverage such as:

  • General Liability ($1M+)

  • Professional Liability (E&O)

  • Workers’ Comp (especially in NJ, CA, NY)

5. Written Contract with Terms & Scope

• Must define:

  • Project scope

  • Work hours & location (remote/hybrid/onsite)

  • Deliverables

  • Invoicing & payment cycle (e.g., NET 30, NET 15)

  • Termination clause

  • Non-solicitation / non-compete

6. W-9 Form Submission

• Your business needs to submit IRS Form W-9 to the client or agency to receive payment

• Include:

  • Legal business name

  • EIN

  • Business type (LLC/S-Corp)

7. Year-End 1099-NEC Compliance

• Your corporation will receive Form 1099-NEC if you earn >$600 from a client (unless exempt)

• You must report income and pay self-employment or corporate taxes

8. Invoicing and Bookkeeping

• Keep clear records of:

  • Hours worked

  • Invoices sent and received

  • Expenses (travel, tools, etc.)

• Recommended tools: QuickBooks, Zoho Books, FreshBooks

9. State Registration Requirements

• Some states (like California, New Jersey) require foreign LLCs to register as a foreign entity if doing business regularly

• Annual filings or franchise taxes may apply

10. Background & E-Verify Checks (If Required)

• Especially for government or Fortune 500 contracts, the client may require:

  • Background screening

  • E-Verify compliance

  • Drug testing

⚠️ C2C Restrictions in 2025

• Some end clients (e.g., Google, Amazon) only accept W-2 or approved vendor partners

• OPT/CPT students cannot operate under their own LLC unless they own a STEM degree, E-Verified company, and USCIS approval

• 1099 may be simpler for short gigs, but C2C offers better liability and tax benefits for long-term roles

📌 Pro Tips for a Successful C2C Contract

✅ Set up an LLC or S-Corp with state + federal compliance
✅ Open a separate business bank account
✅ Create standardized contract templates
✅ Use a CPA to handle quarterly tax filings
✅ Build a clean digital presence (LinkedIn, website, etc.)
✅ Maintain records for 3–7 years (invoices, contracts, taxes)

📋 C2C Documents Checklist (2025)

💬 Final Words

C2C contracts offer flexibility and tax advantages—but they come with legal responsibilities and documentation needs. Whether you’re a solo consultant or running a small firm, being compliant and professional is key to long-term success.

International students on an F-1 visa in the U.S. who have completed their initial 12-month OPT may be eligible for an additional 24-month STEM OPT extension if they meet certain criteria.

✅ What is the STEM OPT Extension?

The STEM OPT Extension allows F-1 students with a qualifying STEM degree to extend their work authorization by 24 months, giving them a total of 36 months of practical training in the U.S.

🎓 Who is Eligible for the STEM OPT Extension?

To qualify, you must:

📌 Key Benefits

• 👩‍🔬 Up to 24 additional months of work authorization

• 👨‍💻 Can change employers, but new employer must also meet STEM OPT criteria

• 🧾 Eligible for Cap-Gap Extension if applying for H-1B

📑 How to Apply for STEM OPT Extension

📆 When to Apply

• Earliest: 90 days before your current OPT ends

• Latest: Before your current OPT expires

• You must not have accrued more than 90 days of unemployment on Post-OPT

📝 Application Steps

1. Prepare Form I-983

• Download Form I-983

• Fill it with your employer and get it signed

• Submit it to your DSO (Designated School Official)

2. Get Updated I-20

• Your DSO will review the I-983 and issue a new STEM OPT recommendation on your I-20

• This must be signed and dated within 60 days of your STEM OPT application submission

3. Submit Form I-765 to USCIS

Include:

• Completed Form I-765

• Filing Fee (~$470; confirm on USCIS site)

• Copy of STEM degree transcript or diploma

• Copy of I-20 with STEM OPT recommendation

• Copy of current EAD card

• Passport ID page, visa page, and most recent I-94

• 2 passport photos (U.S.-style)

Submit by:

• Online: USCIS MyAccount

• By Mail: Address depends on your location (check USCIS I-765 page)

📌 After Submission

• USCIS will issue a Receipt Notice (I-797C) within a few weeks

• If filed before your OPT expires, you can continue working for 180 days while your STEM OPT is pending

🗓️ STEM OPT Reporting Requirements

Once approved, you must:

⚠️ Common STEM OPT Mistakes to Avoid

• ❌ Filing after OPT expires

• ❌ Employer not enrolled in E-Verify

• ❌ Submitting incomplete or unsigned I-983

• ❌ Working before EAD is issued (if OPT has expired)

• ❌ Exceeding unemployment limits (150 days total over OPT + STEM OPT)

✅ Final Tips for Success

• Start early—file at least 60–90 days before OPT expires

• Stay in contact with your DSO

• Double-check that your employer is E-Verify registered

• Keep all documentation updated and easily accessible

• Create a USCIS online account to track your case

🌍 Location: Remote (Preference: Candidates based in Hyderabad or Bangalore)

 We are looking for US IT Recruiter.

Location: Trichy, Tamil Nadu.

Experience: 2+ yrs.

Salary: Industry Standard

Benefits:

Health Benefit: Medical Insurance (For Family which includes Covid -19)

Recurring highest incentives

Onsite opportunities

Overseas Trips for top performers

Annual & Half yearly appraisal for performers

Rewards & Recognition - Weekly & Monthly, Quarterly

Job Description:

Minimum 2+years of experience in US IT Recruitment

Experience working with OPT, CPT, H1B s, TN s, GC s, USC s & EAD s

Ability to interact, develop tier-1 Vendor network and get the H1B/OPT/CPT candidates placed in minimal turnaround time.

Experienced with End to End cycle of sales from submitting Profiles

Please Reach me at sathees@lorventech.com / +91 -97156 - 27307