[spyke112]

If you incorporate as a "single person company", the taxation is for the most part identical to being employed, you can chose another taxation scheme that's sort of like an LLC, but not really. If you're serious as a freelancer, you need to create a LLC, which gives you the possibility to properly save up capital in the company, and eventually pay out dividends instead of a salary which is taxed at a flat 27% up to a threshold that changes each year (in 2023 it's $16.966,24 if married or $8.483,12 if not), above that it's taxed at a flat 42%. We still have corporate tax of any profits at 22%, which means that you still need to pay out a salary and maximize the effective personal tax rate before paying out a lot of dividends.

The only reason this is even a thing in tech, is because of the massive taxation of salaries above ~$100k. If i recall then whatever personal income in the upper bracket is effectively taxed at ~60%, which sucks. It makes it extremely expensive for the employer to give meaningful raises to top performers, and creates an artificial ceiling on salaries that is really hard to break through, unless you go freelance, but that comes with a lot of uncertainty and extra work. I prefer full control over my income and accept the uncertainty in exchange for that.