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Happy Ganesh Chaturthi everyone!!
Hope this gets over...
Anyone willing to chat and refer to EY?
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W2 is when you become the employee of the firm. They handle employer related taxes. May provide benefits. If client pays 100, they may take 20 and give you 80. They may deduct additional 6-8 to pay employer related taxes. You can negotiate all these things with them.
C2C is Corp to Corp. You can also start your own llc or Corp and get into an agreement with Client. In this case you get all 100 from client but you manage everything.
Or your w2 employer goes into an agreement with another vendor who in turn will place you on client engagement.
As someone who did contract work whilst on an H1b... Don't do it. There are usually too many dalals I.e. consultants between you and the client.
Pro
Are you in US right now? W2 is tax form (like Form 16 in India). C2C must be cost to company, that means how much your employer is going to spend on you per annum that includes salary and benefits (anything that’s monetary)
Most desi companies either give you an yearly package or percentage of what they charge to the client that you work for. E.g. Package could be like $150k per annum; Percentage could be 80-20, means they pay you $80 per hour assuming they charge $100 to client.
Either way you need to watch for lot of other things like who pays for immigration expenses, do you have paid time off, will they contribute to 401k, will they pay for health insurance etc. Most desi companies try to exploit.
Rising Star
W2 is employee to the contracting firm. Corp to Corp is that you float your llc or S-Corp and contract with them to get the work done. Both arrangements are done with the contracting firm that in the end has an end client. In both cases you will get a fraction of the billing rate and say 20% will go to the parent contracting firm. I see Corp to Corp beneficial as you can register your firm, expense a few of your expenses for tax credit.
They are poison and u will kill ur carrier, just ignore them. If you want to move out of D, just look at for good companies that can build ur profile and brand