Lanzamo
中文

Europe · BV

Netherlands vs a U.S. LLC

For a non-resident, the Dutch BV and the U.S. LLC sit at opposite ends of the trade-off. A BV is a corporate-tax-paying EU company with a globally respected name, a vast treaty network and a clean route into European markets — but it costs more to launch (mandatory notary), pays 19%–25.8% corporate tax on worldwide profit, and applies 15% dividend withholding when it pays you. A U.S. LLC is a cheap, fast, pass-through structure that for a foreign owner with no U.S.-source income can owe zero U.S. federal income tax — but it carries the Form 5472 trap and signals 'America', not 'Europe'. The right answer follows your customers, your payment rails and your tax home.

Netherlands overview How we research
Country
Netherlands
Topic
vs a U.S. LLC
Reviewed
June 2026

By the Lanzamo Editorial Team · Reviewed June 2026 · How we research

Factor Netherlands U.S. LLC
Entity & taxation Private limited (BV); pays 19% / 25.8% Dutch corporate income tax on worldwide profit LLC; pass-through by default — no entity-level federal tax, owners taxed personally
Tax on a non-resident owner Company pays Dutch CIT; dividends to you carry 15% withholding (reduced/eliminated by treaty or participation exemption) Often $0 U.S. federal tax if no U.S.-effectively-connected income — but Form 5472 is mandatory
How you form it Mandatory civil-law notary deed; notary registers with KVK and files UBOs Self-filed Articles of Organization with the state — no notary
Government & setup fee €85.15 KVK fee but €500–1,500 notary deed on top $35–$500 state filing fee (~$100 typical); annual report varies by state
Resident director / agent No resident director; needs a Dutch registered address (~€20–80/mo) No resident manager; needs a registered agent in the state (~$50–$300/yr)
Setup speed ~3–5 days after apostilled docs; 1–3 weeks end-to-end for a non-resident 1–10 business days depending on state; expedite available
Banking remotely Big Dutch banks hard; Wise/Bunq/Revolut onboard remotely Traditional banks usually want a visit; Mercury/Wise onboard remotely
Annual compliance Annual accounts to KVK + VAT returns + Vpb return every year Form 5472 + pro-forma 1120 every year (foreign-owned SMLLC), plus state report
Reputation & market EU-respected BV; treaty network, participation exemption, European access Unmatched access to Stripe, PayPal, Amazon and the U.S. market

Choose Netherlands if…

  • Your customers, suppliers or marketplaces are concentrated in the EU and you want a company they recognise and trust instantly
  • You want an EU-resident company with one of the world's deepest tax-treaty networks and the participation exemption for holding structures
  • You plan to hold IP and can use the 9% innovation box and WBSO R&D incentives
  • You want a real corporate entity that pays its own tax rather than a pass-through, and you can live with 15% dividend withholding (often reduced by treaty)
  • You value a notarised, on-the-public-register company over the lighter-touch U.S. LLC and its Form 5472 obligation

Choose a U.S. LLC if…

  • You need Stripe, PayPal or Amazon's U.S. ecosystem and customers who pay in USD
  • You have no U.S.-effectively-connected income and want a structure that can owe $0 U.S. federal tax
  • You'd rather have pass-through taxation and report profit on your own return than pay entity-level corporate tax
  • You want the cheapest, fastest formation with no notary and no apostille paperwork
  • Your market is primarily North American and you're comfortable with the Form 5472 filing (and its $25,000 penalty trap)

Verdict: Pick the Dutch BV when your business is European-facing and you value an EU-resident, treaty-rich, public-register company — accepting the mandatory notary cost up front, 19%–25.8% corporate tax, and 15% dividend withholding (usually reduced by treaty). Pick the U.S. LLC when you need the American payments ecosystem and can legitimately structure for low or zero U.S. tax, in exchange for the Form 5472 compliance. If most of your revenue and customers are in Europe, the BV's credibility and treaty access usually outweigh its higher setup cost; if you live off Stripe and U.S. customers, the LLC wins on cost and tax profile.

Read the U.S. LLC overview U.S. cost by state

Frequently asked questions

Which is cheaper to start — a Dutch BV or a U.S. LLC?

The U.S. LLC, clearly. A state LLC self-files for around $100 with no notary, while a Dutch BV requires a mandatory notarial deed (€500–1,500) on top of the €85.15 KVK fee, plus apostille of your home documents. The BV's ongoing cost is also higher because Dutch annual accounts, VAT and the corporate tax return effectively require a local accountant.

Which gives a foreign owner the lower tax?

For a pure non-resident with no U.S.-source income, a U.S. LLC can owe $0 U.S. federal income tax as a pass-through, whereas a Dutch BV pays 19%–25.8% corporate tax on profit and then 15% dividend withholding on distributions (often reduced by treaty). But the LLC pushes tax to your personal return and home country and carries Form 5472 — so 'lower' depends heavily on your own residence. Get cross-border advice before assuming.

Which looks more credible to customers?

It depends on your market. A Dutch BV reads as a serious EU company to European buyers, sits on a transparent public register, and benefits from the Netherlands' treaty and holding reputation. A U.S. LLC signals access to the U.S. market and pairs naturally with Stripe and American banking. Choose the flag that matches where you sell.

Can I have both?

Yes, and some founders do — for example a Dutch BV as an EU holding or operating company and a U.S. LLC for the American market, or one owning the other (the participation exemption is a reason the Netherlands is popular as a holding layer). It doubles your compliance across two registries and tax regimes, with possible transfer-pricing questions, so only do it when each entity genuinely earns its keep.

Sources

More on Netherlands

Netherlands — full overview How to register Taxes Open a bank account Cost breakdown

Comparing Netherlands with other countries?

See Netherlands next to 12 other startup-friendly jurisdictions — fee, tax, capital and the resident-director catch — in one table.

Compare all jurisdictions Browse all countries