BV or Sole Proprietorship: The Big Decision
As an entrepreneur, you'll face an important choice sooner or later: start as a sole proprietor (IB-entrepreneur) or establish a BV and become a DGA (director-major shareholder)?
Sole Proprietorship
Advantages:
- Easy to start - no notary required
- Lower costs - no mandatory annual accounts
- Self-employed deduction of €2,470 (2025)
- Less administrative burden
Disadvantages:
- Personal liability - your private assets are at risk
- Higher tax burden at higher profits
- No salary, but business income
BV (DGA)
Advantages:
- Limited liability - your BV is a separate legal entity
- Lower tax burden on profits above €75,000
- More professional appearance
- Better pension building possible
Disadvantages:
- Establishment costs €1,000-€2,000
- Annual accounts mandatory
- More administrative burden
- No self-employed deduction
When to Choose a BV?
A BV is often interesting from a profit of €75,000 per year. Below that, the costs often don't outweigh the benefits. Also consider a BV if you want to protect yourself personally from liability.