Start for yourself

Many people think about starting their own business, a sole proprietorship. But what should you pay attention to when you start your own business? This article provides an explanation from a tax perspective.

To undertake

If you want to start your own business, you have to think carefully about how you want to shape it. Which space will you work from, will you rent a space or will you work from home? How do you get customers? Do you already have many contacts or are you going to advertise yourself a lot? And what about financing. Do you already have the necessary liquidity or will you have to go to the bank for financing? And also remember that matters have to be arranged from an insurance perspective. In particular, consider covering liability risks and insuring your work materials. Most likely a business plan will have to be written, so take your time. And don’t forecast too optimistically, a company always needs a few years as a start-up phase.

Risk

sole proprietorship ) , realize that you always run a risk. This risk mainly concerns liability or the unexpected bankruptcy of the company. If you are held liable in the company or the company goes bankrupt, this can affect your private assets, even though you (partly) cover this by taking out insurance. It is not without reason that many entrepreneurs have their private assets transferred to their spouse’s name to safeguard them. To (partially) eliminate this risk, many entrepreneurs choose to set up a BV . Keep in mind that setting up a BV is a more expensive affair than starting a sole proprietorship. In addition, from a tax perspective, a BV is only interesting if it has a profit of more than 150,000, which makes it more interesting from a tax perspective to start a sole proprietorship.

What should you do?

If you want to start a sole proprietorship, you cannot avoid the paperwork involved. For example, you will have to register with the Tax Authorities through a start-up company declaration. Here you register as an income tax entrepreneur and (if you provide VAT-taxable services) VAT entrepreneur. If you hire staff, you will also receive a payroll tax number from the Tax Authorities. Remember that you will have to keep an administration. The tax authorities will levy income tax on the result and administration is indispensable. You will therefore have to engage an administration or accounting firm to have the balance sheet and profit and loss account drawn up. They will also file your income tax return and, if you wish, also your sales tax and payroll tax returns. You must also register with the Chamber of Commerce. You will then receive a number from the Chamber of Commerce. You will have to state your VAT number and Chamber of Commerce number on your invoices. Because you cannot avoid invoicing either. And also make sure you have a bank account for the company, as well as the necessary insurance. The actions to be taken in detail:

  • Complete the start-up declaration form
  • Register with the Chamber of Commerce
  • Contact an administration or accounting firm
  • Contact your insurance broker
  • Arrange a bank account for the company

You see, there is quite a bit involved in starting a business. If you do not want to be surprised, hiring a tax advisor is not an unnecessary luxury.

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