Sole trader or a BV to run your business?

Things to consider

• →Deferral has real value. Profit compounding inside the BV instead of being paid out can beat paying it out and investing privately (box 3 taxes growth yearly), especially over many years. The main comparison assumes zero return everywhere, so this isn't in it: see the deferral calculator above for a rough sense of scale.
• →The living cost field is a check, not an input to the verdict. It's subtracted the same way from both routes, so it doesn't change who wins, only how the total splits into spent and saved. It only matters if a route can't cover it (flagged above): then that route is held back by affordability, not tax.
• →Modelling assumption. Flat growth, flat salary. Personal savings aren't modelled further: see our Box 3 or BV Holding tool.
• →Already a controlling director-shareholder (DGA)? This tool is for the entry choice; once you have a BV, use our Salary or Dividend tool to optimise.
• →Liability. Unlimited for a sole trader. A BV shields personal assets, bar director liability and personal guarantees.
• →Business succession relief (BOR) applies to both. An operating business, so succession relief isn't a differentiator here, unlike a passive holding.
• →One-off incorporation cost isn't included. Notary, KVK registration, advice: typically a few thousand euros, once. Only the running cost is in the comparison; add this back yourself if you want it reflected, especially at a short horizon.
• →The starter's deduction (startersaftrek) may disappear from 2027. Announced, not yet final.
• →Old-age reserve (oudedagsreserve, FOR). No new build-up since 2023 either way; full abolition of what remains is under discussion.
• →Pension is no longer a BV advantage. In-house pension (pensioen in eigen beheer) ended in 2017. Both need an external arrangement now.
• →Publicity. A BV files public annual accounts at the KVK; a sole trader publishes nothing.
• →Financing. Lenders sometimes assess sole-proprietor profit differently from a salary-plus-dividend history.
• →The entered salary is assumed payable throughout. In practice the required amount depends on comparable employment and the BV's finances, and may force a loss or a loan from the BV in a bad year (not modelled beyond the depletion flag).
• →Ending the business. Stopping a sole trader taxes unrealised goodwill/assets in box 1 ("stakingswinst"), with a one-off €3,630 relief. Not modelled: depends on assets this tool doesn't track.
• →Excessive borrowing from your BV. Loans over roughly €500,000 are treated as a deemed dividend.
• →Converting later is realistic. A sole trader can move into a BV largely tax-free (tax-neutral incorporation, "geruisloze inbreng"). Not an irreversible choice.
• →Zvw assumes the DGA isn't covered by employee insurance schemes (werknemersverzekeringen). True for most controlling DGAs (the low 4.85% self-assessed rate applies, not the BV's 6.10% employer levy), but it depends on the actual control structure. Dividends aren't subject to Zvw.
• →The labour tax credit (arbeidskorting) is included. Applies to winst or salary, not dividend. A DGA on a modest salary keeps more of it than a sole proprietor whose full profit counts: a real structural point for the BV.
• →The general tax credit (algemene heffingskorting) is included. Based on each route's combined box 1 + box 2 income (box 3 excluded, since personal investment returns aren't modelled): an approximation of the real combined-income test (verzamelinkomen), close enough for this range.
• →The deduction rate adjustment (tariefsaanpassing aftrekposten) is included. Above €78,426, deductions are only worth 37.56%, not your marginal rate: clawed back at 11.94%.
• →Loss relief (verliesverrekening) isn't modelled. A loss year triggers a warning rather than carrying the loss forward or back. Treat results after a flagged loss year with caution.
• →The dividend tests only calculated capital. Not the legal balance-sheet and distribution tests a BV must pass before actually paying a dividend, nor any statutory reserves.
• →Rates used (2026). Box 1: 35.75% / 37.56% / 49.50% at €38,883 / €78,426. Self-employed deduction (zelfstandigenaftrek) €1,200, starter's deduction (startersaftrek) €2,123 (max 3x). SME profit exemption (mkb-winstvrijstelling) 12.7%. Labour tax credit (arbeidskorting) up to €5,685. General tax credit (algemene heffingskorting) up to €3,115, afbouw 6.398% from €29,736 combined income, nihil from €78,426. Vpb 19%/25.8%. Box 2 24.5%/31%. Salary floor €58,000. Zvw 4.85%, capped at €79,409.