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?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 8 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.