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7 unmissable deadlines for my first year as an independent

If "Gouverner, c'est prévoir" ("To govern is to foresee"), freelancing means knowing how to manage, and therefore not letting yourself get overwhelmed, and figuring out as soon as possible the unavoidable financial deadlines that will mark out your first year in business. This is certainly one of the skills you'll need to get you through the first 12 months, and all those that follow, with flying colors. Here's a look at 7 steps you really shouldn't miss.

1. Set-up costs

If you choose the micro-entrepreneur status, you won't have to spend any money on your CFE (center de formalités des entreprises) declaration, except for commercial agents.

On the other hand, if you prefersole trader status, you will haveto pay a registration fee, which will vary according to your activity (commercial, craft, liberal or commercial agent).

2. Social security contributions

You should plan to pay social security contributions from the very start of your business, i.e. from the moment you start earning money. 

As a micro-entrepreneur

You can choose between monthly or quarterly payment. The standard rate is :

  • 12. 8% for sales (merchandise, takeaway food or food for on-site consumption) and provision of accommodation.
  • 22% for services as a craftsman or tradesman.
  • 22% for self-employed professionals covered by the Sécurité Sociale des Indépendants pension scheme.
  • 22. 2% for the self-employed, who are covered by the CIPAV pension scheme.

This percentage is applied to your sales. For example, if you invoiced €1,000, you would have to pay a contribution of €128 for sales or €220 for services.

If you qualify forACRE (aide aux créateurs et repreneurs d'entreprise), you can benefit from a 50% reduction on the above rates, for the first 12 months of your financial year.

Good to know: declared sales correspond to amounts actually received, not to invoices issued.

As a sole trader

If you choose the micro scheme, your social security contributions are assessed in the same way as for micro-entrepreneurs. If, on the other hand, you have opted for the simplified tax system, they are calculated on the basis of your actual income (profit or loss). This corresponds to your sales, after deduction of your expenses.

For the first two years, contributions are calculated on a flat-rate basis equivalent to 19% of the PASS (annual social security ceiling), i.e. €7,816 for 2022.) From the 3rd year onwards, contributions are estimated and paid in the form of provisions, and adjusted when your professional income for the previous year is known.

If you are eligible for ACRE, and subject to certain income conditions (the amount of your annual income taken into account when declaring your actual income), you can benefit from a total or partial exemption from social security contributions (health insurance, maternity, disability, death, family benefits and basic retirement). The remaining contributions are for supplementary pension, CSG-CRDS and professional training (CFP). For 2022, the flat-rate amount is €1408 or €1424, depending on your activity.

3. Bank charges

Opening a bank account dedicated to business activity is not mandatory for sole proprietorships, since they have no share capital. On the other hand, the PACTE law of May 22, 2019 requires self-employed workers to set up a dedicated bank account, if their sales exceed €10,000 for two consecutive calendar years.

As bank charges can vary greatly from one financial institution to another, it is difficult to put a figure on this item.

4. Professional liability insurance

In the course of your business, you are liable for any damage your customer may suffer in the course of a sale or provision of services.Liability insurance is not legally required for the self-employed, but it is strongly recommended.

Professional liability insurance rates are linked to the specific risks of each activity, and differ from one company to another.

5. Supplementary health insurance

This is an important point to bear in mind, especially if you were previously an employee and had a company health insurance plan. As a self-employed worker, it's up to you to take out a contract and plan for this expense in your first year of business.

6. Taxes

If you are a micro-entrepreneur, you will be taxed on your income. Your sales will benefit from a flat-rate allowance for expenses and charges. This is :

  • 71% for buy-to-let activities and the provision of accommodation;
  • 50% for services ;
  • 34% for the self-employed.

As long as your taxable income (RFR) does not exceed a certain amount, you can opt for payment in full discharge.

Sole proprietors are also taxed on their income. There is no flat-rate deduction, as they can deduct their actual expenses.

7. Cotisation foncière des entreprises (CFE)

Cotisation foncière des entreprises is payable by self-employed workers (micro-businesses or sole proprietorships) from the 2nd year of business.