Do you have a project and want to make it a reality? Take the time you need to think about the type of structure that will enable you to develop your business by adding new partners and recruiting employees. It's at the moment of creation that you need to ask yourself the right questions, so that nothing interrupts the development of your business. This guide for the self-employed explains what you can do if you set up a sole proprietorship (micro-enterprise and EI) or a company (EURL or SASU). Focus on the evolving nature of your business.
Is the micro-business scalable?
This is the simplest way to start a self-employed project. It doesn't cost you anything to set up, and accounting is very straightforward.
Can I add partners?
The answer is no, because a micro-enterprise is not a company in the legal sense, but a sole proprietorship with no legal personality. Consequently, it is not permitted for two entrepreneurs to form a partnership with this specific status. To do so is to risk requalification as a de facto partnership, not to mention the fact that it may be analyzed as tax fraud and abuse of rights.
But there are alternatives:
- Set up a micro-business with your spouse or PACS partner. Simply mention this on the form you fill out to declare your activity. This person will then be considered as a "collaborating spouse". He or she cannot be paid, but benefits from social security protection. Note that this option is not available if you are in a common-law relationship.
- Choose a GIE (economic interest group). This allows 2 or 3 micro-entrepreneurs to work together, provided they have the same type of activity, to give you the means to position yourself on larger markets, by pooling your material and human resources.
Can I hire an employee?
The answer is yes. It's perfectly legal to hire an employee as a micro-entrepreneur, but it's quite costly, as you have to take into account the employee's remuneration, employer's contributions... and if your sales increase sharply, you risk exceeding the authorized ceilings and switching to sole proprietorship (EI) status.
So, for a temporary overload, it's best to turn to a fixed-term contract (CDD) or a temporary assignment.
Last but not least, you can hire an intern if you need extra work. Gratuity is compulsory if the internship lasts more than two months (consecutive or not), but is exempt from employer and employee social security contributions.
Is sole proprietorship an evolving business?
Like the micro-enterprise, thesole proprietorship has no legal status and no legal entity. Its manager acts in his own name and on his own behalf.
Can I add partners?
As a sole proprietorship is a structure similar to a micro-business, the answer is no. However, you can use the status of collaborating spouse, provided he or she is unpaid, or join an EIG.
Can I hire an employee?
Hiring an employee is perfectly feasible, but has the same disadvantages as running a micro-business.
Are EURL and SASU scalable?
We have grouped together these two legal forms, which share the common feature of having only one partner. They are therefore equivalent to SARLs and SASs respectively.
Can I add partners?
The EURL is a single-member limited liability company, i.e. a structure with a single partner. It is possible to add a new partner without transforming the company and switching to the legal status of a SARL. However, you need to check that the EURL's articles of association provide for the conditions of this integration. It can be achieved through the sale of shares, checking that the nominal value of the share is consistent with the company's situation. It can also be achieved by increasing the share capital.
The SASU is a single-member simplified joint-stock company. It is therefore formed by a single shareholder. It is possible to add new partners, in which case the SASU becomes a SAS.
There are two ways of introducing a new partner. You can transfer part of your shares to the new partner, with the amount of share capital remaining unchanged, but subject to redistribution. In this case, there may be a change of majority in decision-making, which may lead you to amend your articles of association and draw up a partnership agreement to regulate relations between partners.
You can also decide to increase the share capital by creating new shares to be subscribed by the new partner. This 2nd option is more complex and more costly.
Can I hire an employee?
It is possible to hire employees on permanent or fixed-term contracts, full-time or part-time, in both an EURL and a SASU.