Taking the whole earnings as a dividend is not advisable, because this means that you would have no salary and therefore no retirement pension at all. Governme

Taking the whole earnings as a dividend is not advisable, because this means that you would have no salary and therefore no retirement pension at all. Governments usually incentivize entrepreneurs to have a reasonable salary, and to not take a lot out of the company as dividends, by providing beneficial profit tax brackets if these conditions are met. This incentivizes the entrepreneur to have a pension, which means less people living in poverty over time as they hit the retirement age. It also means that more money will stay in the company, incentivizing investing in the company via equipment and employees for example.