Which legal form suits me?
Short answer
If you start on your own, a sole proprietorship (eenmanszaak) is usually the simplest and most tax-efficient option. If you do business with others, you often choose a general partnership (VOF) or professional partnership (maatschap). A BV is attractive with consistently high profit or if you want to limit your liability. For social purposes, there is the foundation or association.
Updated on · Reviewed by the tax advisers at Boekhoudvriend
Your legal form determines how you pay tax, whether you are personally liable and how much admin you have. You can always switch later, for example from a sole proprietorship to a BV.
The legal forms at a glance
- Sole proprietorship: running a business on your own, income tax with entrepreneur's deductions, you are personally liable
- VOF: running a business together, each partner pays income tax and is jointly and severally liable
- Maatschap: similar to a VOF, mainly for professions such as doctors and lawyers
- BV: a separate legal entity with corporate income tax, limited liability and a DGA salary
- Foundation (stichting) or association (vereniging): for social or non-profit purposes
When a BV?
As a rule of thumb, a BV becomes attractive for tax purposes if your profit is consistently above €100,000, but the tipping point depends on your situation. Risks and plans, such as hiring staff or taking on investors, also play a role.
Sources
- KvK: starting a business (in Dutch)
- Belastingdienst: when are you an entrepreneur for income tax? (in Dutch)
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.