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#jobs-discuss
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2019-06-07
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arnaud_bos13:06:49

Why would companies happily hire freelance contractors but not "hire me" through my company employer? I fail to see the difference between hiring a freelance contractor and paying for a consultant... Can anyone shed some light?

domkm14:06:30

The company I am currently working with has a procurement policy that requires corp-to-corp to go through a 3-5 month process. This is probably unusual but, in some cases, it's not feasible companies them to hire individual consultants due to process requirements or time requirements.

domkm14:06:09

But, aside from this case, I haven't experienced this issue. Typically I've seen a preference for corp-to-corp instead of 1099 because it's less paperwork for the client.

arnaud_bos14:06:11

So more or less related to flexibility ?

arnaud_bos14:06:36

Hum, ok. I don't have much experience but it happened 3 or 4 times in the last year that I could get further on an opportunity basically because they didn't want to do "corp-to-corp" and would rather have an individual.

gklijs14:06:05

I noticed the same. I thought it was because freelancers might do it cheaper.

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domkm14:06:51

I should also note that my experience is almost entirely with US companies and doesn't necessarily apply in other jurisdictions

arnaud_bos14:06:22

I don't know where they get their freelancers from, but the ones I know around here aren't cheaper at all. Maybe they should ask for the price before ^^

gklijs14:06:07

Mine is for Europe, or the Netherlands in particular.

arnaud_bos14:06:16

France here 👋

Conor13:06:05

I imagine the answers you get will vary by where you're talking about

Conor13:06:16

Here in the UK most contractors work through a limited company

orestis13:06:58

Consultants are more expensive because the company has to add a profit margin?

orestis13:06:09

Perhaps not the case universally though.

Ivan13:06:42

I don't even know what "hire through a company" really means

Ivan13:06:03

I guess it has to do with each country's laws, what the binding contract is and what the obligations of the company towards the worker/individual are

arnaud_bos14:06:34

It means that I work for a company which does consulting and another company, which we'd call a client, would pay my company to get me (or someone else for that matter) to work for them. Basic consulting I guess, but I may be using the wrong words. In the end it's probably a mix of your three answers I suppose. I've had a few contact, usually through LinkedIn, asking if I were available for Clojure contract work, but I'm not a freelance and it's where the discussion ends.

Ivan15:06:27

So, in both cases you'll be a contractor. Correct me if I'm wrong, in most places freelance means sole trader, ie a single person company. I don't see much difference whether the contract will be between the client and the sole trader company, or the client and the consulting company. From a legal perspective it's a contract between two companies. Business-wise, it feels like the consulting company may ask for higher rates.

kardan15:06:06

I guess a consulting company would have more potential to switch consultants if it’s not a good fit or if there is sickness or the like

kardan15:06:29

E.g. you pay not not have some headache

Ivan15:06:59

and probably the people will have broader skills

alexlynham15:06:32

in the UK if you’re a sole trader (as yourself) you have different rights, obligations and tax responsibilities

alexlynham15:06:51

if you make a company and work through that as the only employee the rules are different

arnaud_bos15:06:41

On the top of my head I remember at least one time it was a company based in the UK, another time in France, the others I don't remember. It didn't occur to me that a contract with a consulting company would be more constraining than with a single person. In terms of "rights", etc, I would have thought the contrary. But it varies by country of course.