This is an excellent question, but the comparison is really between W2 and corp-to-corp. W2 vs. Corp-to-corp is a strategy all the OG's use to save on taxes. For instance, on W2, say you have a job that pays you $75 per hr, here your employer is likely paying your benefits, however you're getting hit on the taxes heavy because you've moved into that next tax bracket. With corp-to-corp, the consulting firm you're working with writes a check to your company (the full check with no taxes taken out) each pay/expense period (two weeks or once per month). At the end of the year however, you have to pay yourself a salary (maybe 25 grand) and that's what you're paying taxes on. Keep in mind I'm speaking from the stance of having an S-corp setup (let's you avoid double taxation). Also keep in mind that whereas you're asking for $75 per hr on W2, you're asking for $100-110 per Corp-to-corp.