Business creation: which legal status to choose?

2023-06-13 17:50:05

In addition to giving a legal framework to a company, the status determines the degree of taxation, social protection and risks of the future manager. What criteria should be taken into account to choose the legal form of a company? The answers of Catherine Drévillon, founder of the SEDA formalities firm. Is the choice of legal status the most delicate step in a business creation project? CATHERINE DRÉVILLON. It should not be underestimated because it impacts many parameters, including personal ones, related to the family situation, matrimonial regimes… It is advisable not to do any DIY and entrust the drafting of its statutes to a accountant or lawyer. In general, it is not the activity that determines the choice of legal structure, but the mode of organization of the relations between partners and the social system of the manager, depending on the case assimilated-employee or self-employed worker. Is it better to go for a sole proprietorship or a company? It is preferable to exclude the status of sole proprietorship, especially since it is possible to create a company with a single partner. Even if this legal form is simple, it does not make it possible to separate its assets from that of its activity. In the event of difficulties, the entrepreneur must honor the debts of his company from his personal resources. In addition, in a sole proprietorship, the entire result is subject to income tax, regardless of the remuneration actually deducted by the entrepreneur. In a company, the result is taxed at the level of the latter, after deduction of the remuneration paid to the manager. Is self-employed status a good alternative? Renamed micro-entrepreneur, it is suitable for people who embark on an independent, occasional or regular activity, and want to test their project before going further. With two advantages: great simplicity in the administrative procedures for registration, which are carried out online, and a flat rate of contributions deducted from the turnover collected by the company. Main drawback: the maximum turnover threshold not to be exceeded. In 2016, it was €32,900 for service activities and €82,200 for sales. Out of different forms of companies, which are preferable? Three forms stand out: limited liability company (SARL), public limited company (SA) and simplified joint stock company (SAS). Unlike the status of SA, rather reserved for large-scale projects, that of SAS offers advantages. The manager benefits from social security coverage similar to that of employees, with the exception of unemployment insurance. The SAS also offers great latitude in the drafting of the statutes, which constitute the operating rules between partners. It makes it possible to organize the distribution of dividends, so as to facilitate the entry of non-active partners into the company, interested in the remuneration of the sums they have contributed. Find the full Parisian Economy in PDF version .