The 2026 comparison
| Sole proprietorship | BV | |
|---|---|---|
| DAFT capital | €4,500 on the balance sheet | €4,500 as share capital/premium |
| Setup | KVK €85.15, same day | Notary €400–€700 + KVK |
| Tax on profit | Box 1 progressive; self-employed deduction €1,200 + starter deduction €2,123 + SME exemption 12.7% | Corporate tax 19% to €200,000, 25.8% above; salary + dividend for the owner |
| Liability | Personal | Limited to the company |
| US treatment | Flows onto your US return directly | Foreign corporation; election choices available — see US reporting duties |
The rule of thumb
Up to roughly €60,000–€80,000 annual profit, the sole proprietorship’s deductions keep the total burden pleasantly low. Above that band, the BV takes over: profit parks at 19% corporate tax, you pay yourself the customary director salary, and dividends follow at the moment you choose. The tipping-point mechanics in detail: the tax picture for American founders.
Switching later is a feature
Many DAFT founders start as a sole proprietor in week one — fastest registration, immediate deductions — and convert to a BV the year profit takes off. The conversion runs tax-neutrally with proper guidance, and your DAFT status simply continues: the permit attaches to you and your business activity, and the equity requirement travels along. Growth structure from day one instead: DAFT with a BV and holding.
More on your company
- Incorporating your BV on the treaty
- BV and holding: the structure that grows with you
- Keeping your US LLC alongside the Dutch BV
- Opening the Dutch business bank account remotely
- What kind of business qualifies under DAFT
- Taxes for US citizens in the Netherlands under DAFT
- The Dutch expat ruling: part of your salary tax-free
All twenty-one guides sit together on the DAFT hub, grouped the way the route itself runs.