Do you have a business project and more specifically a small business? We will have to choose the legal status. Some statuses are more suitable for small businesses. Let's take a look to help you make the right choice.
ISIS or micro-enterprise for single people?
The choice of legal status is not always simple and different parameters have to be taken into account. Yet it is an essential step when creating a business.
People who wish to create a business alone, perhaps with the aim of testing their project, can choose the sole proprietorship (EI). This legal status is particularly suited to craft, commercial, liberal or industrial activities. Among the advantages, this status does not require any contribution, creation is simplified, liability is limited to professional assets and accounting obligations are restricted.
Note that if you are a craftsman or trader, you will be taxed on income in the category of industrial and commercial profits (BIC). And if you exercise a liberal profession, you will be taxed on income in the category of non-commercial profits (BNC).
Single people have another option to easily create a small business in a few clicks on the Internet: the status of micro-enterprise. This scheme allows you to benefit from a lump-sum reduction on your turnover depending on the activity carried out. It also requires the payment of contributions and social contributions each month or each quarter. Micro-entrepreneurs are also taxed on income.
There are two turnover thresholds for micro-enterprise status:
- €188 when the main activity is the sale of objects and foodstuffs to take away or the provision of accommodation
- €77 when the main activity is service provision
SARL or SAS for people who join
The creation of a company is mandatory from the moment you want to integrate partners. It is also recommended when you want to borrow money to start and the activity involves personal and professional risks.
For small businesses, a first choice of legal status is that of a limited liability company (SARL). Consisting of at least two partners, it has the advantage of being able to be created with little capital and of having a liability limited to the amount of the partners' contribution. LLCs are subject to corporation tax, but it is still possible to opt for income tax, under certain conditions.
Another choice of status for small businesses is the simplified joint stock company (SAS). this statute is recognized for its flexibility, with in particular partners who determine in total freedom in the statutes the share capital and the rules of organization of the company. Liability is also limited to contributions. Taxation is done on the profits or on the income, under certain conditions.
The SASU for an evolving company
If you want to test your activity alone, but think that there is a good chance that your small business will evolve quickly - with the need to integrate partners - your company can take the legal status of a single-person simplified joint-stock company (SASU ). The SASU benefits from simplified constitution and operating rules. It is exempt from certain obligations, such as that of approving the corporate accounts or drawing up a management report each year (under certain conditions).
The SASU can also easily evolve into SAS status.
