Eenmanszaak or BV: when should you switch?

Almost every business in the Netherlands starts as an eenmanszaak. It's cheap, simple, and comes with attractive starter deductions (startersaftrek and the zelfstandigenaftrek) that keep your tax bill low in the early years. The question isn't whether to start there — it's when to leave.

The usual trigger is profit. As an eenmanszaak you pay income tax (inkomstenbelasting) on your profit, and once profit climbs, the top rates start to bite. A BV splits things differently: the company pays corporate tax (vennootschapsbelasting) on its profit, and you pay tax on the salary and dividends you take out. Below a certain profit level the eenmanszaak usually wins; above it, the BV often does. The exact crossover moves with the rules each year, so it's worth running your real numbers rather than trusting a rule of thumb.

But tax is only half the decision. A BV gives you limited liability — the company, not you personally, carries the risk. If you're signing bigger contracts, taking on staff, or working in a sector where something could go wrong, that protection can matter more than the tax maths. A BV also reads as more established to some clients and lenders.

The costs are real too: a notary to set it up, more administration, a mandatory 'customary salary' you must pay yourself as director (the gebruikelijk loon), and stricter bookkeeping. None of it is hard with the right support, but it isn't free.

The honest answer: if your profit is comfortably into the higher range and you want liability protection, a BV is probably overdue. If you're still finding your feet, the eenmanszaak's simplicity and deductions are hard to beat. The worst move is switching on a hunch — run the numbers for your situation first. That's exactly what an Executive Diagnostic is for.