Starting as a self-employed person in 2026: sole proprietorship or a BV straight away?.

Details

• Type: practical starter guide + comparison
• Who it is for: anyone who wants to become self-employed in Belgium
• Topic: choosing between a sole proprietorship and a BV
• Please note: tax rates, thresholds and rules for 2026 are time-sensitive. Have a concrete choice simulated for your situation.

Why is this choice important?

The business structure determines more than just how you set up your activity. It also affects:

• your personal liability;
• the tax on your profits;
• how you pay money to yourself;
• the complexity and cost of your accounting;
• your ability to grow later, bring in business partners or transfer your business.

The best rule of thumb is: start with the structure that fits where you are today. You can always switch later when your activity, profits or risks change.

Sole proprietorship: a simple and flexible start

With a sole proprietorship, there is no separate legal entity: you and your business are legally closely connected.

Advantages

• You can set up the activity quickly through a business counter.
• You do not need articles of association or a notary.
• Start-up costs and ongoing administration are usually limited.
• You can generally use simplified accounting if you meet the conditions.
• The profit goes directly to you; there is no separate company from which you need to withdraw money.
• This structure is a good fit for an activity you want to test first, a side business or a service activity requiring limited investment.

Points to consider

You are personally and unlimitedly liable for your business's debts and obligations. As a result, your private assets may also be at risk, except where statutory or contractual protection applies. Therefore, consider professional liability, contracts and insurance in advance.

The profit from a sole proprietorship is generally taxed through personal income tax. With higher profits, the combination of personal income tax and social contributions can weigh heavily. There is no fixed profit threshold at which a BV automatically becomes more advantageous: your personal needs, investments, family situation and plans all play a role.

BV: more structure and room to grow

A BV is a separate legal entity with its own assets, accounts and tax return. You are a shareholder and/or director, but the business is legally separate from your private assets.

Advantages

• In principle, your private assets are separate from the BV's assets.
• The structure is better suited to larger investments, stock, staff or higher liability risks.
• You can leave profits in the company for later investment.
• You can use different forms of remuneration, such as a director's salary and — if the conditions are met — dividends.
• Shares make it easier to bring in business partners or transfer the company later.

Limited liability is not absolute protection. Directors may still be held personally liable in certain situations, for example in cases of errors, fraud or failure to comply with legal obligations.

Points to consider

• Setting up the company requires more preparation, including articles of association and a financial plan.
• You work with a notary and face higher start-up costs.
• Double-entry bookkeeping and annual financial statements involve more administration.
• In practice, guidance from an accountant or accounting professional is usually necessary.
• Money in the BV is not automatically private money. A distribution must follow the correct remuneration or dividend route and may have tax consequences.

The key differences

When should you consider switching to a BV?

Switching may make sense when one or more of these signals appear:

• your profits remain structurally high and you do not need all of them privately;
• you want to make significant investments or hire staff;
• your activity involves a risk you no longer want to bear personally;
• you want to work with business partners or attract investors;
• you want to make it easier to transfer the business later;
• your current tax and administrative situation calls for a different remuneration structure.

Switching is not just an administrative formality. Have the timing, the value of your activity, any assets and the tax consequences calculated in advance. Starting as a sole proprietorship and switching in a controlled way later is often a logical approach, but it is not an automatic recommendation.

A practical step-by-step plan for starters

1. Make a realistic estimate of turnover, costs, profits and cash flow.
2. Map out your liability risks, investments and any staffing plans.
3. Determine how much income you need privately and how much you want to reinvest.
4. Compare a sole proprietorship and a BV based on your figures, not on a general profit threshold.
5. Ask a business counter and an accountant or accounting professional for advice before setting up the business.
6. Schedule an evaluation: for example, after the first financial year or as soon as your profits, risks or plans clearly change.

2026: check the current rules

The source discusses, among other things, changes for 2026 that may affect the taxation of profits and distributions from a company. Rates, waiting periods and effective dates may change or depend on transitional rules. Therefore, do not use general percentages as a definitive simulation and check the current regulations before setting up a BV or planning a switch.

Source

VDV Accountants — Starting as a self-employed person in 2026: sole proprietorship or a BV straight away?

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