I'm sure this post will be very helpful to many who wish to follow in your footsteps!
Just a curiosity question: In the Netherlands, do you also need to register as an individual entrepreneur separately to manage income from other sources, such as Substack, such as is the case in France?
That’s a great question. I personally set my B.V. up so broad that I could open a new income stream under the same business if I wanted to. I think it all depends on the BV and the incorporation documents, but I would encourage anyone reading this to inquire with a professional.
Thanks. It sounds like the B.V. allows you to engage more than one employee, is that right? If one were seeking to work simply as a sole trader--a consultant, artisan, etc.--would that involve a different type of company or are the regulations for the B.V. sufficiently flexible to cover all the bases? (My last question, I promise!)
I could hire employees, yes. I am an employee too. I do have contractors who do some work for me. I think that’s what you’re asking. I believe most people who want to protect their personal financial assets from the business go the BV route from the conversations I had with my Dutch accountant. He mentioned not to use the ZZP route because the taxes are levied differently and the protection isn’t sufficient if you fail. It’s also the route you take if you are from the US wanting to use the DAFT w/ 30% ruling. Hiring employees is possible but obviously come with risks like anywhere. Apologies for that long winded response, I had to think it through.
Great post Heather! What if you just kept your LLC for the protection and your US LLC paid you as a NL ZZP vendor? Obviously you would give up the 30% ruling, but wouldn’t DAFT be ok with that?
That’s a great question I’d have to ask a professional. Right now it’s working (finally). I kept income going to the US LLC. It pays me for my US expenses which are fairly minimal. Then the Dutch BV pays my majority income. It was tough to get going but now that I’m settled into a rhythm I think it might just work out.
I'm sure this post will be very helpful to many who wish to follow in your footsteps!
Just a curiosity question: In the Netherlands, do you also need to register as an individual entrepreneur separately to manage income from other sources, such as Substack, such as is the case in France?
That’s a great question. I personally set my B.V. up so broad that I could open a new income stream under the same business if I wanted to. I think it all depends on the BV and the incorporation documents, but I would encourage anyone reading this to inquire with a professional.
Thanks. It sounds like the B.V. allows you to engage more than one employee, is that right? If one were seeking to work simply as a sole trader--a consultant, artisan, etc.--would that involve a different type of company or are the regulations for the B.V. sufficiently flexible to cover all the bases? (My last question, I promise!)
I could hire employees, yes. I am an employee too. I do have contractors who do some work for me. I think that’s what you’re asking. I believe most people who want to protect their personal financial assets from the business go the BV route from the conversations I had with my Dutch accountant. He mentioned not to use the ZZP route because the taxes are levied differently and the protection isn’t sufficient if you fail. It’s also the route you take if you are from the US wanting to use the DAFT w/ 30% ruling. Hiring employees is possible but obviously come with risks like anywhere. Apologies for that long winded response, I had to think it through.
Great post Heather! What if you just kept your LLC for the protection and your US LLC paid you as a NL ZZP vendor? Obviously you would give up the 30% ruling, but wouldn’t DAFT be ok with that?
That’s a great question I’d have to ask a professional. Right now it’s working (finally). I kept income going to the US LLC. It pays me for my US expenses which are fairly minimal. Then the Dutch BV pays my majority income. It was tough to get going but now that I’m settled into a rhythm I think it might just work out.
Such a helpful guide! I can see the Dutch are a bit like the Spanish when it comes to emails.