BV or Sole Proprietorship in 2026: What's the Best Choice?

Are you torn between a BV and a sole proprietorship?

It's not just about taxes or costs. The real question is:

👉 How do you structure your business to match your risk, profit and ambitions?

Many entrepreneurs make this decision based on gut feeling. Smarter entrepreneurs think ahead.

What Is the Core Difference?

• Sole proprietorship → you are the business
• BV → the business is a separate legal entity

👉 This means: as a sole trader, you are fully personally liable.

Want to know when that risk really matters? Read: when you are personally liable as a director

When Does a Sole Proprietorship Make Sense?

This is often the right choice if you:

• are just starting out
• have low financial risks
• invest little
• want to stay flexible

👉 Ideal for freelancers and starting entrepreneurs.

But watch out: 👉 as soon as you start collaborating, everything changes read what you need to arrange with a business partner

When Does a BV Become Interesting?

A BV is not an "upgrade" — it's a strategic choice.

Relevant when you:

• structurally generate profit (± €80k+)
• face risks (claims, staff, contracts)
• want to grow or invest
• want to operate more professionally

👉 This is where you shift from executor to entrepreneur.

Tax: Often Overrated

Many entrepreneurs focus entirely on this.

But:

👉 tax is rarely the decisive factor

Why?

Because:

• risk has a bigger impact
• structure becomes more important as you grow

Real-World Example

An entrepreneur runs a thriving sole proprietorship.

Revenue grows. Contracts get bigger.

He thinks: "I don't need a BV yet."

Until a claim arrives.

👉 Result: full personal liability

Common Mistakes

❌ Waiting too long

Risk grows faster than you think

❌ Switching too early

Unnecessary costs and complexity

❌ Only looking at taxes

Wrong focus

Checklist: What Fits You?

Sole proprietorship if you:

• start small
• face little risk

BV if you:

• are growing
• face risk
• are considering investors 👉 read what you need to arrange then

Frequently Asked Question

When is a BV better than a sole proprietorship? When your profit rises, risk increases or you want to grow with investors, a BV is often the better choice.

Conclusion

The choice between a BV and a sole proprietorship is not an administrative decision.

It is a strategic choice.

👉 And it must match where you want to go — not just where you are today.