Sole proprietorship, freelancer or general partnership?

You finally want to take the plunge and you are ready to start your own business, but as soon as you dive into the admin it gets too complicated. That is what we are here for. We help you along step by step, including by giving you the most important information about entrepreneurship and tax matters. We are here for all small businesses, but which business structure best suits your ideas, and which is the most advantageous? Will you go for a sole proprietorship (eenmanszaak), work as a freelancer (self-employed professional), or are you thinking of a general partnership (VOF)? We line them up for you.

“Full control, full responsibility.”

The sole proprietorship

A sole proprietorship is the simplest and most common legal structure for new entrepreneurs. As the name suggests, the business is run by one person. That does not mean you cannot hire staff – quite the opposite. You just remain the sole owner at all times and responsible for running the business.

Advantages

• Easy to set up: Setting up a sole proprietorship is relatively easy and inexpensive.
• Full control: As the sole owner, you have full control over how the business is run and over its decisions. Great for the true control freaks.

Disadvantages

• Unlimited liability: You are personally liable for all the debts of the business. This means creditors can also claim your private assets; in other words, there is no clear separation between business and personal.
• Limited growth opportunities: Getting financing and growing can be harder, because you depend on your own resources.