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Which legal structure is best
for your business...

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depends on your specific situation.

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How many risks do you run?
Are you starting on your own or with others?

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What are your plans for the future
and do you have investors?

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The legal structure determines your
liability, for example.

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But also which taxes you have to pay
and which tax benefits you can use.

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Contrary to popular belief, zzp'er
(self-employed professional without staff)...

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and freelancer are not legal structures.

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They, too, have to choose a legal structure.

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The 3 most common choices are: a
sole proprietorship for a single owner...

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a general partnership for several owners...

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and the private limited, which you can
set up alone or with others.

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The advantages: the sole proprietorship
and general partnership are easy to set up.

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You simply register your business
with KVK.

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Also, if your profits are low, you can
benefit from tax schemes.

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The downside is that you
are personally liable...

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if your company has debts
it cannot pay.

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For a private limited, the plus side...

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is that you are usually
not personally liable.

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This legal structure is often chosen
when there are investors.

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And when you want to
trade internationally, the bv has...

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a more solid image.

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On the downside, registration must
be done through a civil-law notary...

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and taxes are more complicated,
and not always favourable.

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Let's hear what these entrepreneurs have chosen.

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I started a sole proprietorship
and basically that's still what I am.

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My accountant gave me that advice then,
and still does now, really.

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Tax-wise, it's beneficial for us, and of course
my profits remain below a certain level.

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So for me, the sole proprietorship
remains the right choice.

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We started as a general partnership,
because we think of ourselves as a team.

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And after that we made a division,
an 80-20 division...

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and we just put that in writing.

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That's the financial aspect.
-Yes, the financial aspect.

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But the company really
belongs to us both.

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The first 2 years, we were
a general partnership.

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And then we switched to a private limited.

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We acted on advice from our accountant
and the bank...

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to reduce the entrepreneurial risk
and the tax pressure.

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Getting expert advice pays off.

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It wasn't until we started
making big money, that we...

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"Big money".
-You know, I mean more than...

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than a nice extra. When you really
start making a living from it.

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It's good idea to talk to someone about...

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Or when you buy a house.
You have to factor everything in.

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The risks aren't as great...

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because with a general partnership,
you are personally liable for losses.

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And you could let a bv go bust. Of course,
that is not what you want.

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But you could, and you
would not be personally liable.

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We really have everything in order
in our company. We know what we're doing.

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We know how much to set aside,
so we're not personally liable.

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And that we can cope
on our own.

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And now it is time for action.

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Choose the legal structure
that best suits your situation.

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If you choose a bv (private limited),
have an accountant and notary advise you beforehand.

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And you can always change
your legal structure at a later date.

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Want to know more?

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Visit KVK.nl/en/starting