Company Types·Jul 2, 2026·5 min read

Kft. vs Bt. vs Sole Proprietorship: Which Fits You?

Choosing the right legal structure is one of the first — and most important — decisions you'll make. Here's a straightforward comparison.

Sole Proprietorship (Egyéni vállalkozás)

The fastest and cheapest way to start. You can typically register online in a day. The tradeoff is full personal liability — your personal assets are on the line if the business runs into debt.

Kft. (Limited Liability Company)

The most common structure for businesses that want liability protection. Requires a minimum share capital and formal founding documents, usually drafted with a lawyer or notary. Accounting requirements are more involved than a sole proprietorship.

Bt. (Limited Partnership)

A partnership structure with at least one general partner (unlimited liability) and one limited partner (liability capped at their contribution). Less common than a Kft., but useful for certain multi-founder setups.

Rule of thumb: if you're a solo freelancer or consultant with low risk exposure, a sole proprietorship is often simplest. If you're taking on contracts, hiring, or want liability protection, a Kft. is usually the better long-term choice.

Can I change structure later?

Yes — many founders start as sole proprietors and later convert to or establish a Kft. as the business grows. This transition can be planned in advance with the right guidance.

Still not sure?

Book a free consultation and tell us about your situation — we'll give you a clear, practical recommendation based on your specific goals.