I choose my employment status

Updated on Monday 03 October 2022

There are a number of different forms of employment status open to me when I decide to start working independently: sole trader, limited company or portage salarial company.

Choix du statut juridique

I have decided to go freelance. The first stage is to choose the legal form to host my activity. The term “freelance” does not constitute a status as such. It is easy to become confused as there are many possibilities and they do not all have the same impact for taxes, social protection or income. I must take my needs into account to choose the most appropriate status for my situation.

The micro-enterprise regime

In France, the micro-enterprise system is very popular with freelances. This regime allows me to register free of charge and extremely quickly, in under 24 hours, and conduct my freelance business in parallel to another job, for example. Another significant advantage: I pay contributions in proportion to my turnover and am exempt from VAT – on condition that I stay under the ceiling of €33,200 for non-commercial services. However, I have identified a few disadvantages: turnover is limited to €70,000 per calendar year. In addition, my social security coverage is more limited – unless I take out supplementary insurance to cover myself in the event that the work runs out.

Individual Enterprise (EIRL)

The formalities of setting up an individual enterprise (EIRL) seem relatively straightforward and affordable, and can be done online. As far as taxation is concerned, my profits will be subject to income tax, but I can decide to change to corporate tax. In terms of responsibility, this status allows me to allocate part of my assets to my professional activity, thus separating them from my private assets.

Single-member simplified joint stock company (SASU)

The SASU is a derivative of the simplified joint stock company, formed by a single shareholder. As president, I would work as an assimilated employee, therefore affiliated to the general social security system, and my liability would be limited to the amount of my contributions. By default, the profits are subject to corporate tax, but for the first five years, I could choose to pay income tax instead.

Limited Liability Single person company (EURL)

The EURL is a derivative of the SARL (LLC). The administrative formalities are slightly lighter than for the SASU, but still more expensive than an EI. There again, my responsibility is limited to the amount of my contributions, but I can join the social regime of the self-employed. I can freely choose to pay income tax or corporate tax, with no time restriction.

Portage salarial Company

Discovering the portage salarial company system with AD’Missions. This option corresponds more to freelances in search of liberty and security. This status is based on a tripartite relation between a portage salarial company, me, and my customer’s firm. I therefore become a salaried employee of the portage salarial company and enjoy all the advantages and guarantees of that status (social security, unemployment insurance, retirement funds) and the independence of the freelance. I receive a salary every month calculated on my turnover. I may also be able to deduct business expenses and take advantage of tax-free savings schemes, as well as optimised, tailor-made salary engineering.

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