Employee, , self-employed: which status to choose, according to what criteria?
✋First, what is Independent Business?
It is a form of commerce made up of outlets managed by individual traders or independent legal entities
There are two independent forms of trade
👉Isolated independent trade consists of:
🆇 Small retailers managing autonomously and isolated a point of sale
🆇 A large number of retail outlets
👉Organized trade:
1- Associated trade
2- Franchise
✋In preamble
Choose his status after the commercial, economic and financial analyzes of his project
🆇 Be accompanied
🆇 Do not choose a legal status for its simplicity
🆇 The determination of the status is made according to each person, of each personal situation
✋What company you want to create?
🆇You will create a craft, industrial, commercial or liberal enterprise.
🆇You will have to choose a legal status that constitutes the legal framework in which you will operate.
🆇Your social welfare regime will depend on the legal form of your business and your status within the company.
✋What are the main criteria determining your choice?
🆇 The nature of your business
🆇 The will to exercise alone or with partners
🆇 The Contractor's Social Scheme
🆇 The tax system
✋The nature of the activity
🆇 Depending on your activity, you will be an artisan, an industrialist, a trader or a liberal professional.
🆇 Check the legal qualification of your activity by consulting professional bodies, chambers of commerce or chambers of commerce.
🆇 Your activity can be exercised in different legal forms depending on its nature.
🆇 Some activities impose obligations such as licensing or registration: tobacco, driving school, pharmacy, taxi, moving company...
✋The will to exercise alone or with partners
Working alone: Individual business is the simplest and most used form of small business.
✅The individual company: main characteristics
🆇You are the only master on board
🆇Formalities related to start-up are reduced
🆇The name of the company is yours
🆇No share capital
🆇The manager's personal and professional wealth is confused: you are liable for the debts of the company to all of your property and your spouse's property if you are married under the community regime (unless a declaration of exemption from seizure)
🆇The profits of the enterprise are confused with the remuneration of the manager and are included in the calculation of the income tax and contributions and social contributions
Work with partners:
You must deal with the other partners. The number of units held will determine the control and management of the company.
✅The company: main characteristics
🆇Creation of a new legal person (legal entity)
🆇The executive acts on behalf of the company: it is accountable to its partners, decisions are made collectively
🆇Administrative formalities are more cumbersome and costly than for the creation of an individual enterprise
🆇Social capital is needed
🆇The assets of the company are distinguished from the personal wealth of the directors
🆇The profits of the company are distinguished from the remuneration of its managers
The company: the possible statutes of the company and its managers
🆇EURL: sole shareholder, single non-managing partner (SEW*) / non-affiliated manager (EAW**)
🆇SARL: majority managing partner, non remunerated majority non-managing partner, majority management board (SEW) / minority shareholder or equal paid manager,
🆇SAS : Paid President, Paid Officer (EAW)
🆇AMP: Associate Managing Partner (SEM) / Non-Managed Associate (EAW)
🆇SA : Paid CEO, member of the employee board (EAW)
✅PS:
* SEW: self-employed worker
** EAW: employee-assimilated worker
✋Advantages and disadvantages of individual and associate companies
Advantages of Individual companies:
✅1 solely responsible: full powers of the contractor
✅No contribution of capital
✅Formalities and reduced costs
✅Evolutionary status
Disadvantages of Individual companies:
✅Personal and professional assets combined (responsible for debts on personal assets)
✅Profit of the company confused with the remuneration of the contractor.
✅Possibly need to modify his marital property regime in order to protect the family patrimony.
Advantages of Associated companies
✅Liability limited to the amount of the contributions (except for lack of recognized management)
✅Choice of tax system under certain conditions
✅Capital may be created with contributions in kind
Sustainability of the company on the individual
Disadvantages of Associated companies
✅Minimum Share Capital
✅The officer acts on behalf of the company and not in his own name
✅It is accountable to its partners
✅Formalities more expensive (statutes, drafting of minutes of assembly, filing of accounts of the company at the registry ...)
✅Annual Formalism (Assemblies)
Which one is the best?
