How HR2HR Works

From your first call to your first placement — here's the full picture.

The Problem We Solve

Most HR professionals and recruiters who consider starting their own consulting business are experts in HR — not in business law or multi-state tax code. That's not a knock; it's a different skill set.

The problem shows up when someone has a client ready to sign and a consultant ready to start, but the business behind them isn't ready to support the placement. Formation takes time. Insurance takes time. Setting up compliant payroll takes time.

HR2HR removes that bottleneck entirely — so you can focus on what you're already good at.

The Four-Step Model

1

You Bring the Business

Your clients, your consultant network, your relationships — the part of this that actually requires HR expertise. You don't need to have an existing entity or any legal structure in place. You just need the connections and the knowledge of the market.

2

We Build the Backend

We handle the infrastructure that most aspiring independent consultants get stuck on. This includes:

  • Company formation — the legal entity needed to operate
  • Business insurance — E&O, general liability, and workers' comp where applicable
  • Payroll setup — compliant with federal and state requirements
  • Tax registration — federal EIN and state registrations across jurisdictions
3

You Place Your People

Once the infrastructure is in place, you place your consultants with your clients. You manage the relationship, handle expectations, and grow the engagement. We manage payroll processing, ongoing tax compliance, and any state-by-state labor law requirements — so the backend keeps running smoothly whether you're placing consultants in one state or ten.

4

We Share the Profit

For every consultant placed, the difference between the client bill rate and the consultant pay rate is the gross profit on that placement. That profit is split between you and HR2HR — transparently and consistently. The more you place, the more you earn. There's no cap.

What We Handle On an Ongoing Basis

This isn't one-time setup. We manage these things continuously for every partner.

🏢

Company Formation

We set up the legal entity needed to operate — you don't need an LLC before getting started, and you don't need to pay legal fees to get one formed.

🛡️

Business Insurance

Coverage where it counts — protecting you, your business, and your consultants. We ensure the right policies are in place before placements begin.

💰

Payroll Processing

Every consultant you place gets paid accurately and on time, through a compliant payroll system. You don't manage payroll; we do.

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Federal & State Tax Compliance

We handle tax obligations across every state where you have active placements — filings, registrations, and ongoing compliance updates as laws change.

⚖️

Labor Law Compliance

Employment rules vary by state and update regularly. We monitor changes and build them into how payroll and contracts are handled — automatically.

Is This the Right Path for You?

This model tends to make the most sense if:

✅

You have an existing network of clients and/or consultants but haven't formalized a business around it

✅

You want to test whether independent consulting is right for you before investing in your own entity and infrastructure

✅

You're placing (or want to place) consultants across multiple states and don't want to manage compliance in each one

✅

You'd rather spend your time on relationships and placements than on administrative overhead

Book a Free Consultation

Ready to See What This Looks Like for Your Business?

A free consultation takes 15 minutes and gives you a clear picture of how HR2HR can support your specific situation.