> a) it lowers the tax burden for the hiring company, so they are willing to allocate some of that saving into pay Is it really the tax burden or the social se

> a) it lowers the tax burden for the hiring company, so they are willing to allocate some of that saving into pay Is it really the tax burden or the social security burden? > so they are willing to allocate some of that saving into pay Sure, but as a contractor you will also have to take care of social security etc. yourself, which adds to your costs. > b) it allows the contractor to optimize costs in tax-efficient ways. I'd be interested in hearing what that would look like exactly! In Germany you have a bit of leeway but your overall taxes (at the LLC & personal level together) will still be comparable.