From a tax perspective, this is unlikely. When one’s lifestyle consumes most of one’s income, a sole proprietorship is simpler and just as effective. A corporation (SA) or a limited liability company (Sàrl) becomes advantageous from a tax standpoint once the entrepreneur wishes to reinvest a portion of their profits.
Is it worthwhile to incorporate a corporation when high income is entirely spent?
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About the Author: Attorney Cedric PANCHAUD
Cédric Panchaud is an attorney, holds a doctorate in law, is a licensed notary, and is a certified tax expert. He heads PANCHAUD Tax & Legal SA, an independent firm in Geneva specializing in taxation of individuals and corporations, real estate taxation, occupational pension plans, and corporate restructuring. He regularly serves as a speaker at continuing education seminars (ISIS, OREF/EXPERTsuisse).