A limited liability company (LLC) has both advantages and disadvantages. We have listed these for you. 

Advantages

• The biggest advantage of a LLC is that as a director, you are in principle not liable for damages and debts of the LLC. With a sole proprietorship, however, you are always fully liable for these, even with your private assets.
• Shares in a LLC are easily transferable. Through a share transfer, you transfer all debts and assets at once. With a sole proprietorship, this is much more complex.
• You can be a director, shareholder and founder of a limited company yourself, but these can also be different people. This way, you can divide the tasks and don't have to do all the work yourself. Pretty convenient!
• If you start making more turnover in a LLC, you will pay a lower tax rate (the corporate income tax). From about €80,000 net profit per year, the LLC is more tax attractive than a sole proprietorship. You can also make use of certain deductions, such as the investment deduction or the innovation box (stimulating innovative research).
• With a LLC, it is possible to employ staff. 
• A LLC appears more professional compared to a one-man business, as it is a legal entity created according to criteria regulated by law.

Disadvantages
A limited liability company can therefore be an attractive choice. However, there are also disadvantages to this legal form.

• The costs of setting up a limited liability company, as well as the annual administrative costs, are generally higher than for a sole proprietorship, for example.
• A LLC faces more rules and obligations, such as preparing annual accounts annually, keeping shareholder registers and holding shareholder meetings.
• The tax rules for LLCs are more complex than for other forms of companies. 
• You cannot claim the self-employed deduction, start-up deduction, SME exemption or Dutch Small Businesses Scheme.