Choosing the right legal entity in the Netherlands is a key decision for any business. A sole proprietorship offers simplicity and is ideal for freelancers and small businesses. However, the owner assumes full liability. On the other hand, a private limited company (BV) provides limited liability protection, which is suitable for growing businesses looking for a more robust legal structure.
A legal entity also affects the way you file taxes. A Dutch BV, for instance, is subject to corporate tax rates, while a sole proprietorship is taxed based on personal income. It's important to seek professional guidance to understand these implications fully. HouseofCompanies can assist in evaluating which legal structure is most beneficial based on your business’s goals and the tax burdens involved.
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