If we are a C-corp startup about to hire an individual contract developer, who would like to enter into the agreement and get paid as a S-corp, rather than a person, are there any risks or downsides to hiring an S-corp vs. an individual?

Asked on November 5, 2015 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, from your perspective, as the client/customer, there is no difference between paying him as an individual, as an S-corp., or as an LLC. If he has an LLC or S-corp, he'd need to provide you a valid EIN or tax ID number (and individual would use his social security number), but as long as he does, it's his choice.


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