Retroactive contribution to private limited-liability company of sole tradership operations

September is the right time for business owners to weigh up whether they should for the time being continue operating as a sole tradership or adopt private limited-liability company status.

If you have been carrying on a successful sole tradership, it may make sense for you with retroactive effect from the first of January 2017 onwards to change your business’ status to that of a private limited-liability company. This requires you to submit – by registered post, we would stress – your letter of intent to the relevant effect to the Tax and Customs Administration before the month of September is out.

One of the advantages of operating under a private company format is that as the owner of the business you cannot in principle be held accountable in a private capacity for any tax debts and other liabilities your business may incur.

We would advise you promptly to get in touch with your financial adviser and discuss whether the conversion from sole tradership to corporate status would make sense for you, so as to leave you enough time to take the necessary steps.

Dutch version: Inbreng eenmanszaak in BV met terugwerkende kracht