“Hiring C2C consultants is easy…” Said no recruiter ever (at least not after their first compliance audit).
If you’ve ever tried to onboard a Corp to Corp (C2C) consultant and felt like you were signing a peace treaty rather than a contract, this post is for you.
Whether you’re new to C2C or just want to avoid a tax-season facepalm, here are 7 common mistakes to dodge—with tip #5 being one that could hit your budget hard.
Mistake 1: 📄 Misclassifying the Consultant
Oops! You thought C2C = Independent Contractor = No Worries? Wrong. If the consultant is operating under a business entity, great! If not, you might be on shaky legal ground.
✅ Tip: Always ensure they’re incorporated (LLC, S-Corp, etc.) and not just claiming to be C2C.
Mistake 2: 🧾 Skipping the Business Legitimacy Check
Would you hire someone who says they’re a “CEO” but their company has no website, no EIN, and their business address is a Taco Bell? Didn’t think so.
✅ Ask for their EIN, business license, and verify their entity via state databases.
Mistake 3: 🚫 No Written Agreement
Verbal agreements are cool—for pizza orders. Not so much for C2C contracts.
✅ Always get a proper MSA (Master Service Agreement) and SOW (Statement of Work) in place. Spell out payment terms, scope, and end date clearly.
Mistake 4: 🕵️♂️ Skimping on Background Checks
Just because they’re not your employee doesn’t mean you skip background verification. Some clients (especially in finance or healthcare) require it.
✅ Background check, drug test (if required), and reference calls still matter—yes, even for C2C.
Mistake 5: 💸 Ignoring Tax Implications
THIS ONE HURTS. If you misclassify or work with someone without verifying their business status, you might be on the hook for employment taxes and penalties.
✅ Keep records of certificates of incorporation, insurance, and all contracts for at least 3–7 years.
Mistake 6: 🛑 Failing to Define Project Boundaries
C2C consultants are not full-time employees. You can’t expect them to be in daily standups, company Slack channels, or joining holiday parties. (Unless there’s cake.)
✅ Respect the B2B nature of the relationship. Set deliverables, not clock-in times.
Mistake 7: ✅ No Internal C2C Hiring Process
Winging it every time? That’s risky. Having no standard process = inconsistent vetting = legal nightmares.
✅ Create a C2C checklist for your team:
- Verify company details
- Collect documentation
- Align on deliverables
- Confirm insurance, NDAs, etc.
Final Thoughts: Hire Smart, Not Sorry
C2C hiring doesn’t have to be scary—or expensive. With a few checks and clear boundaries, you can find awesome talent without the HR horror stories.
Don’t just protect your company—protect your peace of mind.
Need a plug-and-play C2C onboarding checklist? Shoot me a message—I’ll send you the doc that saved my last client from a $10K compliance mess. 👀