Incorporating gives you a lot of options: pay eg. only 25% of your gross income as salary, the rest at the end of the year either as a bonus or as dividends. If

Incorporating gives you a lot of options: pay eg. only 25% of your gross income as salary, the rest at the end of the year either as a bonus or as dividends. If there is a social security cap, it may even be beneficial to pay yourself out 25% first and second month and then 250% the third, depending on actual rates (social security contribution cap and progressive income rates). So in general, an LLC allows you a lot more flexibility to adapt to tax rules. However, social security caps used to be much lower for self-employment or single-person entreprenuerships in some countries, which resulted in local companies asking de-facto employees to set up self-employment single-person businesses, and pretend to have a b2b relationship, with no employee protections and smaller taxes.