Choice of the legal status when creating a company

Choice of the legal status when creating a company

Choice of the legal status when creating a company

Choice of the legal status when creating a company

Choice of the legal status when creating a company

The Choice of the legal status when creating a company is one of the first steps to ensuring that your business gets off to the best start possible and should not be underestimated.

The person who creates a business in France must choose a legal status for their company, sole proprietorship or partnership, which will be decisive for the legal formalities with the French administration, for the personal legal status of the company owner, as well as fiscal, administrative or social matters.

Creating a company is an important step, that needs to be considered carefully, it is usually best to consult with a legal specialist or an accountant before the final choice, in order to choose the right status for you.

The choice of the status of the company depends on the type of professional activity that will be carried out, as well as other items to consider:

  • Will the company be created by an individual or created in association with partners?
  • What are the financial needs of the new structure?
  • Does the company creator wish to separate their personal assets from the business assets?
  • What will the turnover of the company be?
  • How can the business be tailored to ensure that the business owner is not paying unnecessary taxes and charges.

 The different types of company statuts are :

Legal Status Characteristics Who can use this statut?
Entreprise individuelle Business in their own name or in a  personalised name.

The identity of the company is in the name of the owner, who is responsible for their own assets.

Craftsperson, tradesperson , industrial/professional persons.
Entreprise individuelle à responsabilité limitée (EIRL) Individual company where the entrepreneur can keep professional assets separate from their personal assets. Craftsperson, tradesperson, industrial, professionals (but not the legal professions, judicial or healthcare, with the exception of pharmacists)

 

Entreprise unipersonnelle à responsabilité limitée (EURL) A company that has only one partner / shareholder, similar to an individual company (EIRL), but that has the same financial and administrative rules as a Limited company. Craftsperson, tradesperson, industrial, professionals (but not the legal professions, judicial or healthcare, with the exception of pharmacists)

 

Société en nom collectif (SNC) Company in which the partners (minimum 2) have the status of tradespeople and are jointly liable for debts of the company. No minimum capital is required. Craftspeople, tradespeople, industrial, freelancers (but not the legal professions, judicial or healthcare, with the exception of pharmacists)
Société anonyme (SA) Company with share capital, whose shareholder participation (minimum 2, or 7 for a listed company) is based on the capital that they have invested in the business. It can be run by a board, with a chief executive officer (CEO) or by a board of directors with a managing board.
Société à responsabilité limitée (SARL) Company in which each partner (2 to 100) is not, in principle liable for the debts of the company only up to their personal contributions. No minimum capital required. Craftspeople, tradespeople, industrial, freelancers (but not the legal professions, judicial or healthcare, with the exception of pharmacists)
Société d’exercice libéral à responsabilité limitée (SELARL) Company in which a freelancer can exercise a regulated profession in the form of a limited liability company (SARL). Regulated professions.
Société civile professionnelle (SCP) Company allowing multiple members of a regulated profession to exercise their activity in common, even if each partner remains personally taxed on their own share of any profits made. Regulated professions (except speech therapists, chiropodists, pharmacists, midwives, insurance agents, accountants, dieticians and psychologists).
Société par actions simplifiée (SAS) Society in which each of the partners (at least 2, with no maximum) is responsible for the debts of the company only up to their own personal financial contribution. No minimum capital required. Craftspeople, tradespeople, industrial professionals, freelancers (but not the legal professions, judicial or healthcare).
Société par actions simplifiée unipersonnelle (SASU) Company with single-member shares the same the characteristics of an SAS. No minimum capital required. Craftspeople, tradespeople, industrial professionals, freelancers (but not the legal professions, judicial or healthcare).

 

Choix du statut juridique de l’entreprise en création

 

 

 

 

 

 

 

 

 

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