Is my current legal structure still optimal?
Is my current legal structure optimal?
Thinking about your legal structure is important, because what you choose can have implications for everything from taxes and finance to administration and legal matters, both for your business and your personal life.
Switching to a different legal structure
Several factors may be a good reason to consider changing your legal structure:
- Rapid growth
- Rising revenue
- Increasing profits
- Expanding team
- New investments
- Greater need for financing
- More exposure to liability
- Growing responsibility for business continuity
- Greater responsibility in your personal life
Pros and cons
Changing your legal structure to a private limited company (B.V.) has the following advantages:
- Limits personal liability.
- Helps ensure business continuity.
- Supports your desired image and/or branding.
- Provides better opportunities with lenders and public tenders.
- Lets you build a separate private asset base.
Depending on your financial situation, switching to a B.V. can also have drawbacks. The disadvantages of changing your legal structure to a B.V. include:
- The SME profit exemption and the self-employed deduction do not apply to a B.V.
- The (minimum) salary requirement for the managing director and majority shareholder.
- Administrative obligations.
What to consider
Every change in legal structure brings up different questions and considerations. These may include:
- Is your retirement plan in good shape?
- Have you made the necessary arrangements for your partner and/or children? (e.g. wills and/or prenuptial agreements)
- Do you own real estate within the business, or do you rent a property?
- What is your strategy? In other words: where do you want to take the business?
- What are the consequences for your partners and colleagues?
Feel free to reach out to us. Together, we can figure out what works best for you and your business.
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Considering a move to a B.V.? Here are three important implications!
Overstappen naar een bv?
Dat beïnvloedt deze 3 zaken!
Gaan de zaken goed en overweeg je de overstap van een eenmanszaak of vof naar een besloten vennootschap (bv)? Deze stap kan veel voordelen bieden, maar heeft ook gevolgen op fiscaal, juridisch en administratief vlak. In deze blog lichten we drie belangrijke veranderingen toe.
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