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The decision really depends on the size and stability you're aiming for with your business. If it's something one-off or with unpredictable income, freelancing can work. But if you have recurring clients and stable revenue, a company gives you asset protection that freelancing never will - your personal money stays separate from the business if things go wrong.

I tried staying as a freelancer for a few years and thought it was great because I didn't have to worry about high social contributions or accountants. The problem came when I had a big client who started demanding company invoices, then another one, then another. I lost opportunities because I didn't even have a basic structure. When I finally opened a limited company, it cost me around a couple hundred euros in registration and paperwork, but I made that back in two or three invoices I couldn't do before.

What most people don't say is that as a freelancer you end up paying quite a lot in contributions if you're earning well - at certain income levels it's almost the same as a company, but without the benefits. Employment contract, business bank credit, access to incentives - that stuff only exists if you have a company. The paperwork I mentioned above is annoying, I agree, but nowadays there's software and accountants who handle it almost automatically, so that argument doesn't really hold up anymore.

I've had more flexibility as a freelancer and I avoid all the bureaucratic hassle of constantly dealing with paperwork, but if you're thinking of doing this seriously and making decent money, a company gives you more credibility with clients and banks, plus you can deduct expenses that are way more complicated as a freelancer.

sol90 PT 📗 Student 💬 19 answers

What nobody usually mentions is the tax side of things - as a freelancer you pay higher contributions and you're more exposed to audits if your income gets way above average, whereas with a company you get more deductions and protection. But if you're earning little and only sporadically, being a freelancer saves you from fixed costs that would drown you.

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