Short answer: for most starters a sole proprietorship is the simplest option, and it is tax-efficient thanks to the entrepreneur’s deductions. A partnership (vof) is for working with a partner. A BV limits your personal risk and can pay off with higher profits, but brings more costs and obligations.
The differences at a glance
| Sole proprietorship | Partnership (vof) | BV | |
|---|---|---|---|
| Liability | You, including your private assets | Each partner fully for all the partnership’s debts, even those your partner took on | The BV; the director personally in certain cases (e.g. mismanagement or unreported inability to pay taxes) |
| Tax on profit | Income tax (box 1) | Income tax per partner | Corporate income tax (19% up to €200,000, 25.8% above that; 2026 rates) |
| Entrepreneur’s deductions and SME profit exemption | Yes, if you meet the conditions | Yes, per partner | No |
| Setting up | Register with the KVK | All partners register with the KVK together | Via a civil-law notary, minimum share capital €0.01 |
| Salary | You make drawings from the profit | Profit sharing | As director-shareholder you pay yourself a customary salary: in 2026 in principle at least €58,000, unless you can show a lower salary is appropriate |
When does a BV make sense?
There is no fixed profit threshold. A BV only pays off when your profit is high enough to pay yourself the required customary salary and cover the extra costs (notary, annual accounts, corporate tax return). A BV can also be sensible if your business carries more risk, for example because of large contracts or staff.
That is why many entrepreneurs start as a sole proprietorship and later switch to a BV, sometimes with a holding above it. This is called restructuring.
Tip: run the numbers
Which form is best for you depends on your expected profit, your risks and your plans. We are happy to work through the options with you in a meeting.
Sources
This article gives general information and is not personal advice. Rules and amounts change; to find out what applies to your situation, get in touch with us.