Sole trader or BV? Work out what you keep after tax
The differences
Sole trader or BV: what is the difference?
The choice comes down to three things: how much tax you pay, who is liable when things go wrong, and how much work the administration takes.
01
Liability
As a sole trader you are liable with your private assets for your business’s debts. A BV is a legal entity: in principle only the BV’s assets can be claimed, except in case of mismanagement or when you give a personal guarantee.
02
Tax as a sole trader
You pay income tax in box 1, from 35.75% to 49.50% in 2026. The entrepreneur deduction and the SME profit exemption of 12.7% of your profit come off first.
03
Tax as a BV
The BV pays 19% corporate income tax up to €200,000 profit and 25.8% above it. You pay box 1 on your salary and 24.5% in box 2 on dividend up to €68,843, 31% above it.
04
Customary salary
If you work for your BV as a director and major shareholder, you must pay yourself a salary. In 2026 that is at least €58,000, or more if that is customary for your work.
05
Entrepreneur deduction
If you work at least 1,225 hours a year on your business, you get a €1,200 self-employed deduction. As a starter you get a €2,123 starter deduction on top.
06
Setting up and administration
A sole trader registers with the KVK themselves. A BV is set up by a notary, for at least €500 to €1,500, and every year it files annual accounts with the KVK.
Frequently asked questions about sole trader or BV
From which profit is a BV better?
That depends on your situation. With the 2026 rates, the minimum customary salary and all profit paid out, one owner working 1,225 hours keeps more with a BV from about €95,000 to about €407,000 profit per year. Above that, corporate income tax and box 2 together cost more than box 1 again. If you leave profit in the BV, you pay only corporate income tax on that part for now.
What is the customary salary?
The salary you must receive from your BV as a director and major shareholder. In 2026 it is at least €58,000, or the salary that is customary for comparable work if that is higher.
Am I never personally liable with a BV?
Not always. In principle only the BV’s assets can be claimed. In case of mismanagement you are personally liable as a director, and for a loan the lender often asks for a personal guarantee.
What does it cost to set up a BV?
A BV is set up through a notary. According to the KVK that costs at least €500 to €1,500. After that there are yearly costs, such as the annual accounts and the corporate income tax return.
Can I move from sole trader to BV later?
Yes. Many entrepreneurs start as a sole trader and convert to a BV when the profit grows. The KVK explains how to go about it.
Can I open an account at GoDutch with my BV or sole trader business?
Yes. Sole traders are welcome at GoDutch too. A BV must first be registered with the KVK through a notary. After that you fill in the application in 3 minutes and are operational within 1 day.
What does the decision tool leave out?
A fiscal partner, other income, box 3, pension, investment deductions, the small business scheme and losses from earlier years. The costs of the notary and the annual accounts are not in the amounts either.
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