It depends on the country. I'm not familiar with contractors in the USA but in many countries contractors take home (with a few corporate tricks) is significant

It depends on the country. I'm not familiar with contractors in the USA but in many countries contractors take home (with a few corporate tricks) is significantly higher than employees, especially, as you mentioned, if you can pay yourself with dividends, avoiding most of social insurance. It's perfectly legal though, not a matter of oversight. Countries like the UK are now closing these and other loops with IR35 but you can still do that in many places. You also have the option of not taking money out of the company and use your company to invest your own money, paying up taxes only on the money you need to support your lifestyle. When you're done living where you're living you can also opt for a stop in Dubai or Portugal with NHR, to withdraw the profits as foreign dividends tax free.