I'm often asked by a head-hunter whether I want to be categorized as either a 'W-2', '1099' or 'Corp-to-Corp'.

1) What are the benefits of each; and
2) What's the cost of registering as a 1099 and Corp-to-Corp?

For short-term assignments (6 months) that frequently require me to relocate and temporarily live in motels/extended-stay hotels (high living overhead) in addition to paying my mortgage; would it be prudent to a '1099' or remain with 'W-2' status?

Normally I get a higher paycheck (about +$5/hr) as a 1099 vs W-2.

Ric.

What they mean is this:
1. If you get a W2 that means you are employed by someone. Your employer withholds Federal and State tax and pays half of your social security.

2. If you get a 1099-MISC that means you have your own business and are an independent contractor doing work for other businesses. You pay your own taxes a social security.

3. I assume Corp. to Corp means that you form a limited liability company and check the box for the corporate form. Then, whoever pays you is paying your corporation. You file both a corporate return and a personal return.

Which is best depends on the facts and circumstances of your business.

An employee gets W2 and an independent contractor gets 1099-misc. On W2 the employer must withhold Social Security and Medicare taxes.

On 1099-misc, you will pay 15.3% SE tax instead of 7.65% withheld from W2 income. Thus you pay about 7.5% more. The advantage of getting 1099-misc is that you can directly deduct your business related expenses on schedule C or C-EZ. On W2, you can take business related exepenses only as itemized deduction How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor.