Eenmanszaak or BV? Choosing your legal form

One of the first decisions you'll make as a new Dutch entrepreneur: should you register as an eenmanszaak (sole proprietorship) or a BV (private limited company)? The answer depends on your liability, your expected profit, and tax efficiency. Let's break it down.

The quick answer#

Start as an eenmanszaak. It's simpler, cheaper, and gives you powerful tax deductions. Switch to a BV only when your annual profit reliably exceeds €90,000–€100,000.

But the full answer depends on your situation. Here's what matters.

Eenmanszaak (sole proprietorship)#

An eenmanszaak is you. There is no separate business entity. You are the business.

Advantages:

• Tax deductions for entrepreneurs — you can deduct the zelfstandigenaftrek (€2,470 in 2025), startersaftrek (€2,123 if you qualify), and the MKB-winstvrijstelling (12.7% of profit). These can save you €5,000–€15,000 per year depending on your profit. A BV gets none of these.
• No formation costs — registering an eenmanszaak costs about €80 (the KVK fee).
• Minimal paperwork — no separate annual accounts or director filings.
• Simpler bookkeeping — your business profit flows straight into your personal tax return.

Disadvantages:

• Personal liability — if someone sues your business or you can't pay a debt, they can go after your personal assets (house, savings, car).
• No separation of business and personal assets — legally, there's no boundary. This matters less if you have no employees or assets, but it's a risk.

BV (private company)#

A BV is a separate legal entity. You own it (as a shareholder), but you're not the business — your company is.

Advantages:

• Limited liability — creditors can only pursue the company's assets, not yours personally.
• Professional image — some clients or investors expect a BV.
• Profit flexibility — you can keep profit in the company or pay it to yourself (as salary, dividend, or loan repayment), optimising tax.

Disadvantages:

• Formation costs — setting up a BV costs €500–€2,000 (notary, registration).
• No entrepreneur deductions — you lose the zelfstandigenaftrek, startersaftrek, and MKB-winstvrijstelling. You pay tax on corporate profit (around 19% on the lower band, 25.8% on the higher band) PLUS income tax on what you draw out.
• Annual reporting — you must file annual accounts with the KVK.
• Payroll complexity — if you pay yourself a salary, you must handle payroll tax (loonbelasting).
• Minimum capital requirement — €0.01 formally, but in practice you need working capital.

When does a BV start to make sense?#

The break-even is roughly when your annual profit reaches €90,000–€100,000. At that point, the corporation tax + income tax of a BV begins to cost less than the personal income tax on an eenmanszaak — even though you lose the entrepreneur deductions.

The exact break-even depends on your situation (how much you draw vs. retain, whether you have employees, your personal circumstances). A tax advisor can calculate it for you — it's worth the fee if profit is high enough.

Eenmanszaak → BV later: switching is easy#

You don't have to choose forever. Many freelancers start as an eenmanszaak, then move to a BV once profit justifies it. The switch is straightforward:

1. Close or convert your eenmanszaak
2. Register the BV
3. Move assets and contracts over

Your accountant or a notary handles most of it. See When is it worth switching to a BV? for the full process and timing.

Special case: VOF (partnership)#

If you're starting with a partner, you have another option: a VOF (vennootschap onder firma, partnership). This is two or more self-employed people working together. Each partner:

• Pays personal income tax on their share of profit
• Gets the same entrepreneur deductions as an eenmanszaak
• Shares joint and several liability with their partner(s)

A VOF is simpler and cheaper than two BVs, but watch the liability. If your partner makes a mistake, you're personally liable too. A partnership agreement (samenwerkingsovereenkomst) is essential. More: Working together in a VOF.

The tax deductions you'd lose with a BV#

To make the eenmanszaak vs BV choice concrete, here's what you'd give up by switching to a BV:

On a profit of €80,000, these deductions could save you €15,000–€20,000 in tax. You'd need profit of €120,000–€150,000 before a BV becomes cheaper.

(These figures are for reference; check the latest rates at belastingdienst.nl.)

Frequently asked questions#

For most new freelancers, the eenmanszaak is the right start. It's simple, it gives you powerful tax breaks, and you can switch later if your business grows. Only move to a BV when the numbers truly justify it — and a good accountant will tell you when that moment arrives. ZZP Belasting helps you stay on top of your profit forecasts, so you'll know well in advance when a switch makes sense.

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