I come from Slovenia. We also have a progressive taxation rate with no cap. If I didn't run my income/expenses through a business entity, I would be paying 56%

I come from Slovenia. We also have a progressive taxation rate with no cap. If I didn't run my income/expenses through a business entity, I would be paying 56% in taxes, mandatory pension, and state-mandated healthcare. I wonder why all the software engineers I know form sole proprietorships and get paid through those ...