Umbrella payrolling versus own BV company can be a crossroad you arrive at. What is the best choice? The best choice depends on your aim in your tax life.
Umbrella payrolling versus own BV company
The situation can arise that you like to change jobs, but you have legal aspects to take into account that make you require a legal entity such as a BV company.
What legal aspects could that be? For instance you are on a knowledge migrant, or a migrant or on a temporary work visa in the Netherlands. This is rather crucial to you. Or you have the so called 30% ruling you like to continue for the remaining period of time. For both you need a legal vehicle.
Umbrella payroling company prevails – Visa
If you would like to work for your own income, that is without an employer dictating you what to do, the visa issue can be a true issue. You can set up a BV company, but that BV company is not easily an Immigration service (IND) accepted employer. A complex process and many forms are to be submitted. We as tax advisors are very much excited about forms to be completed of course, but the IND forms to be completed is the next level. We are not that much excited about forms.
In such a situation we recommend you find an umbrella payrolling company that is an IND referend company that can put you on their payroll and continue your visa.
Umbrella payrolling company versus own BV company – cost wise
Setting of the fee an umbrella payrolling company charges you for their services against the accounting costs of maintaining a BV company are more or less equal. There we see not much difference. Depends of course on which umbrella payrolling company you compare with which accounting company.
BV company prevails – being in charge
The BV company prevails in the comparison with the umbrella payrolling company with respect to being in charge. The umbrella payrolling company can cope with one maybe two ‘clients’, but that is it. If you actually have the intention to become a true entrepreneur, you do not have one client only. One client is no client. So you search for more clients. You have large clients, small clients, projects, one offs etc.
If you are in charge of your own BV company you can encounter whatever opportunity arrives at your door. The BV brings you in this respect freedom.
We are very much excited about you setting up your own BV company. Mainly because we do not provide the service of umbrella payrolling. We support you in developing yourself in becoming that entrepreneur, we can be very enthusiastically in setting more absurd goals in turnover then you can think of yourself. And often absurd is not absurd at all, but an achievement in the next year.
Naturally we will be keen to set up and or run the accounting and tax filing obligations for your BV company. Feel free to contact us to receive a quote of our services.
Sorry for the dashes in the middle of the word tax-is-exciting. Apparently Google has a dirty mind and sees only a three letter word that we refer to when we practice to reproduce ourselves. Anything related to that word is spam, hence this devout solution.