Should you pay thousands more for a BV structure or stick with the simplicity of a sole proprietorship? Most food truck owners start simple, but that choice could cost you serious money once profits hit €50,000. The math changes dramatically based on your actual earnings.
Sole proprietorship: simple and cheap to start
A sole proprietorship is the simplest legal structure for your food truck. You own everything directly and keep all profits, but you also shoulder every risk personally.
💡 Example costs sole proprietorship:
Annual fixed costs for a food truck sole proprietorship:
- Chamber of Commerce registration: €50 (one-time)
- Bookkeeper: €1,200-2,400 per year
- Insurance: €800-1,500 per year
- VAT return: do it yourself (free) or €300-600 via bookkeeper
Total: approximately €2,000-4,500 per year
As a sole proprietor you'll pay income tax on your profit. Rates climb from 37.07% to 49.5% depending on your earnings. You'll also pay AOW premium and can opt into other social insurance programs.
⚠️ Watch out:
As a sole proprietor you're personally liable for everything. If your food truck runs into trouble, creditors can come after your house and personal savings.
BV: higher costs but better protection
A BV (Limited Liability Company) costs significantly more to establish and maintain, but delivers crucial benefits like limited liability and potentially massive tax savings.
💡 Example BV costs:
Annual costs for a food truck BV:
- Setup (one-time): €1,000-2,000
- Notary annual accounts: €500-1,000
- Bookkeeper: €2,000-4,000 per year
- Insurance: €800-1,500 per year
- Chamber of Commerce: €50 per year
Total: approximately €3,500-6,500 per year (after setup)
A BV pays corporate income tax on profits at 25.8% (flat rate since 2022 for most companies). But as managing director-majority shareholder, you'll pay wage tax on your required salary too.
The breakeven point for your food truck
A BV becomes financially smart once your food truck generates solid profits that you can retain in the company. You'll pay 25.8% corporate tax instead of up to 49.5% personal income tax - a pattern we see repeatedly in restaurant financials once operators cross certain revenue thresholds.
- Profit under €50,000: Sole proprietorship usually wins
- Profit €50,000-100,000: BV can save money if you don't distribute everything
- Profit above €100,000: BV almost always beats sole proprietorship
💡 Calculation example:
Food truck with €80,000 annual profit:
- Sole proprietorship: €80,000 × 40% (average) = €32,000 tax
- BV: €80,000 × 25.8% = €20,640 corporate income tax
- Difference: €11,360 per year (if you keep the profit in the company)
This easily covers the extra BV costs.
Administrative burden differences
A BV brings substantially more paperwork. You'll need proper annual accounts that meet legal standards and professional review by an accountant or admin office.
- Sole proprietorship: Basic bookkeeping, simple income tax return
- BV: Double-entry bookkeeping, formal annual accounts, corporate tax return, plus wage tax for yourself
⚠️ Watch out:
As a BV managing director-majority shareholder, you must pay yourself at least €48,000 annually in 2024. That's mandatory wage tax regardless of your company's performance.
Making the switch later
Most food truck owners start as sole proprietors and convert to a BV as revenues climb. This transition makes financial sense but involves real costs.
- Transferring business assets into the BV
- Potential tax on goodwill value
- Notary fees for the conversion
- Updating your accounting systems
Tools like KitchenNmbrs help you track profitability accurately with either structure, so you can make data-driven decisions about timing your switch.
How do you choose the right legal structure? (step by step)
Calculate your expected annual profit
Make a realistic estimate of what your food truck will earn per year after deducting all costs. Use your food cost, fixed expenses and expected revenue to calculate this.
Compare the tax burden per legal structure
Calculate how much tax you pay as a sole proprietor (income tax) versus as a BV (corporate income tax + possible dividend tax). Pay attention to the difference between distributing profit and retaining it.
Add up all annual costs
Compare not just taxes, but also administrative costs, insurance and mandatory expenses. A BV costs more to run, but can be more advantageous at higher profits.
✨ Pro tip
Calculate your actual food truck profits over 8-12 months before committing to a BV structure. You need consistent €65,000+ annual profits to justify the minimum salary requirement and extra administrative burden.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Can I switch from sole proprietorship to BV after starting?
Absolutely, and many food truck owners do exactly that as profits grow. The conversion involves transferring assets and paying notary fees, but it's straightforward. Most make the switch around €60,000-80,000 in annual profits.
What's my personal liability with each structure?
As a sole proprietor, you're personally liable for everything - creditors can seize your house if things go wrong. With a BV, you're only liable up to your investment (minimum €0.01), unless you've signed personal guarantees.
Do I need professional help with BV accounting?
Not legally required for small BVs, but most owners use a bookkeeper or admin office for the annual accounts. The legal requirements are complex enough that DIY usually isn't worth the risk.
How does VAT work with each structure?
VAT registration is completely separate from your legal structure. Both sole proprietors and BVs can register for VAT and reclaim business expenses. Your choice of structure doesn't affect this at all.
What happens to losses in each structure?
As a sole proprietor, you can offset losses against other personal income immediately. With a BV, losses stay in the company and can only offset future BV profits - they don't help your personal tax situation.
How does the €48,000 minimum salary requirement work?
If you're a managing director with majority ownership in your BV, you must pay yourself at least €48,000 in 2024. This creates guaranteed wage tax costs even if your BV barely breaks even. Factor this into your breakeven calculations.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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