Working in Switzerland as an independent contractor or as an employee of your own company?

3 May , 2024 - Fiduciaria Lago

Managers wishing to work in Switzerland are faced with a crucial choice: operate as self-employed or as employees of their own company?

Each of these options presents specific advantages and challenges, particularly when considering the tax and legal implications.

In this article, we will explore the two working methods to help you determine which may be the most advantageous in the current Ticino context.

Lavorare come Indipendente nel Canton Ticino

Up to a turnover of CHF 500,000, the self-employed can benefit from a simpler declaration process; however, the fact of residing in Ticino or Italy may have different tax implications.

It should also not be forgotten how pension plans can be less attractive in anticipation of retirement.

Working as an Employee of One's Own Company in Ticino: The Advantages

As an employee, the company may offer pension plans and other tax benefits that may be more advantageous than those available to the self-employed.

Being an employee of one's own company allows one to maintain a clear separation between private and corporate sphere, reducing complexity in situations such as loans or credits.

Managing a company and working as an employee implies a significant administrative burden, including fulfilling legal and tax obligations.

There are costs associated with running a company that should be addressed before embarking on an initiative.

Working in Switzerland as an Employee or Freelancer in Your Own Company: What to Consider When Choosing

When considering whether to operate as an independent contractor or as an employee of your company, consider the following factors:

• Long-term financial and fiscal objectives

Plan according to your growth and retirement goals.

• Budget requirements

Consider your needs for liquidity and access to credit.

In Conclusion

In Canton Ticino, as in the rest of Switzerland, the decision between working as an independent contractor or as an employee of your company depends on many personal and professional factors. It is recommended that you consult a tax consultant or legal expert to examine the specifics of your situation before making a decision.

If you are an entrepreneur in the Canton of Ticino seeking guidance on this important choice, do not hesitate to contact our Fiduciaria for personalised and detailed advice that will help you navigate these options while optimising your tax and legal position.

In Switzerland, a person can be a shareholder, director (if resident on Swiss territory) and employee of their company; three functions that can be exercised simultaneously.

That said, the question of whether to work as an independent contractor or as an employee of one's own company raises some general considerations.

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