The document provides guidance on different options for setting up as an IT contractor: (1) Working as an agency employee where taxes are deducted but earnings are lower; (2) Using an umbrella company which handles administration but the contractor is an employee; (3) Forming a limited company which provides more tax benefits but involves more administration and costs approximately €400 to set up. Setting up a limited company involves registering the company, appointing directors, notifying registered office details, issuing shares, and registering for taxes. Contractors must consider VAT registration if sales exceed €27,500.