Complete Guide: Choosing Your Legal Status

The simplest status to start. Ideal for testing an activity.

Characteristics:

• Creation in 15 minutes online • Ultra-simplified accounting • Charges calculated on revenue (not profit) • No VAT below thresholds

Revenue ceilings (2025): • Services: €77,700/year • Sales: €188,700/year

Social charges: • Services: 21.1% of revenue • Sales: 12.3% of revenue

Taxation: • Standard income tax (progressive scale) • Final discharge option: 1.7% to 2.2% of revenue

Advantages:

✅ Maximum simplicity ✅ No mandatory accountant ✅ Proportional charges (no revenue = no charges) ✅ CFE exempted 1st year ✅ Can combine with employment

Disadvantages:

❌ Limiting revenue ceilings ❌ No expense deduction ❌ Limited social protection ❌ Less credibility with large accounts ❌ Unlimited liability on personal assets

Ideal for: • Side activity • Testing an idea • Revenue < €50K/year • Few professional expenses

A real company, alone. Personal asset protection.

Characteristics:

• Separate legal entity • Free share capital (€1 minimum) • Liability limited to contributions • Manager = sole shareholder

Social charges (self-employed manager): • About 45% of net compensation • Contributions even without compensation (minimum ~€1,100/year)

Taxation: • Income tax by default (profit taxed in your name) • Corporate tax option possible (often advantageous)

With corporate tax option: • 15% corporate tax up to €42,500 profit • 25% corporate tax above • Dividends possible (30% flat tax)

Advantages:

✅ Limited liability ✅ Deduction of all expenses ✅ Enhanced credibility ✅ Tax optimization possible (corporate tax + dividends) ✅ Easier transmission

Disadvantages:

❌ More complex creation (~€500 in fees) ❌ Mandatory accounting ❌ Minimum contributions even without revenue ❌ Annual formalities (AGM, filing accounts)

Ideal for: • Revenue > €50K/year • Significant professional expenses • Need for credibility • Growth project

The preferred status for tech freelancers and premium consultants.

Characteristics:

• Separate legal entity • Free share capital (€1 minimum) • Liability limited to contributions • President = sole shareholder • Great statutory freedom

Social charges (president as assimilated employee): • About 80% of net compensation (employer + employee charges) • No contributions if no compensation

Taxation: • Corporate tax by default • 15% corporate tax up to €42,500 • 25% corporate tax above • Dividends: 30% flat tax

Advantages:

✅ Better social protection (general scheme) ✅ No contributions without compensation ✅ Pay slips (banking credibility) ✅ Salary + dividends optimization ✅ Premium image

Disadvantages:

❌ High social charges on salary ❌ Complex creation (~€700 in fees) ❌ Mandatory accounting and formalities ❌ Higher management cost

Optimization strategy: • Minimum salary to validate quarters • Rest in dividends (30% flat tax) • Savings vs EURL if low compensation

Ideal for: • Revenue > €70K/year • Need for premium image • Social protection priority • Future fundraising project

Freelancing without creating a structure. Best of both worlds?

How it works:

1. You find your assignments 2. The umbrella company invoices the client 3. They pay you a salary 4. You're an employee of the umbrella company

Costs: • Management fees: 5-10% of revenue excl. VAT • Social charges: ~50% of the rest • Net: about 45-50% of invoiced revenue excl. VAT

Advantages:

✅ Zero structure creation ✅ Employee status (unemployment, retirement, health insurance) ✅ Zero accounting ✅ Zero administrative management ✅ Immediate start

Disadvantages:

❌ High cost (you keep ~50% of invoiced) ❌ Dependence on umbrella company ❌ Minimum daily rate often required (~€300) ❌ Less flexibility ❌ No entrepreneur image

Comparative calculation (€100K revenue):

| Status | Approximate net | |--------|-----------------| | Micro-enterprise | ~€75K | | EURL with corporate tax | ~€55-60K | | SASU (salary) | ~€50-55K | | Umbrella company | ~€45-50K |

Ideal for: • Testing before creating a company • One-off assignments • Employee status priority • Allergy to administration

Summary to facilitate your choice.

Status comparison:

| Criterion | Micro | EURL | SASU | Umbrella | |-----------|-------|------|------|----------| | Creation | 15 min | 2-4 weeks | 2-4 weeks | 1 day | | Creation cost | €0 | ~€500 | ~€700 | €0 | | Accounting | No | Yes | Yes | No | | Revenue ceiling | Yes | No | No | No | | Expense deduction | No | Yes | Yes | No | | Asset protection | No | Yes | Yes | N/A | | Unemployment | No | No | Yes* | Yes | | Net on €100K revenue | ~€75K | ~€58K | ~€52K | ~€48K |

*SASU unemployment: only if parallel employment contract or prior negotiated termination.

Social scheme:

| Status | Scheme | Coverage | |--------|--------|----------| | Micro | Self-employed (SSI) | Basic | | EURL | Self-employed (SSI) | Basic | | SASU | Assimilated employee | Complete | | Umbrella | Employee | Complete |

Taxation:

| Status | Default | Option | |--------|---------|--------| | Micro | Income tax | Final discharge | | EURL | Income tax | Corporate tax | | SASU | Corporate tax | Income tax (first 5 years) | | Umbrella | Income tax (salary) | N/A |

Follow this path to find your ideal status.

Question 1: What is your projected revenue?

→ < €30K/year: Micro-enterprise → €30-70K/year: Go to question 2 → > €70K/year: Go to question 3

Question 2: Do you have significant expenses?

→ No (< 20% of revenue): Micro-enterprise → Yes (> 20% of revenue): EURL with corporate tax

Question 3: What is your priority?

→ Maximize net: EURL with corporate tax → Social protection: SASU or Umbrella → Zero management: Umbrella company

Question 4: Do you need banking credibility?

→ Yes (property purchase): SASU (pay slips) → No: According to previous criteria

Question 5: Are you planning to raise funds?

→ Yes: SASU (adapted structure) → No: According to previous criteria

Common evolutions:

1. Start: Micro-enterprise (test) 2. Growth: Switch to EURL/SASU (revenue > ceiling or optimization) 3. Maturity: SASU + holding company (wealth optimization)

Tip: Consult an accountant to validate your choice. The first consultation is often free.