As a 1099 contractor, the employee pays both halves of his FICA/social Security/Medicare tax (7.65% per half). As employee of his own S-corp, C-corp or LLC, the employee pays half and the employer pays half. So you end up paying the same taxes.
I would like to take a moment to euthanize the trope of "wrap myself in a corporate shell and lower my salary to reduce tax". Every tax authority knows this trick. It goes without saying that obvious tricks are obvious.
So yeah, the tax authorities are going to have a problem with you taking a $50,000 salary for a $100,000 job -- if it lowers your tax - and if it doesn't, why do it? (well there are other reasons: And they don't care whether you say "tomayto" or "tomahto" if the tax is the same.)
I'm getting beat up in comments for something I never said: that all distributions from that corporate shell must be tax fraud. First let me point out that if your customer hires you as an employee, it has very high HR expenses with things like a competitive healthcare plan, their half of FICA, unemployment compensation risk, endless paperwork, compliance, yadayada. Just think of all their sexual harassment related costs. They don't hire you 1099 to "make you more money". They hire you 1099 to spend less to hire you. And they don't pay you more if your last name is "LLC".
So the one place your LLC can create cash is by hiring you at a proper W-2 salary, and then being more efficient at those high HR costs. Get a cheapie Obamacare Bronze plan. Unemployment? HA! Spend evenings and weekends doing paperwork. This "created value" becomes surplus cash in the LLC and is distributable.
So the corporate shell allows you to correctly reclassify the difference between "competitive W-2 salary" and "competitive 1099 earnings" as not salary (fair enough, if you think about it) and lets you profit by efficiency.
One more hitch. Any bona-fide corporate entity must retain enough internal cash-on-hand to satisfy likely liabilities. So you can't distribute it all, some money will be tied up. Of course, you can just drunk-stumble through all this corporate stuff and probably get away with it, but that's not a correct answer.