The PEIRL form enables you to protect your personal assets by opting for the status of individual limited liability company (EIRL) when setting up a sole proprietorship. There are several PEIRL forms, depending on the nature of the business. The PEIRL CM form, Cerfa 14215, is intended for micro-entrepreneurs in the crafts and trades.
Who should fill out the PEIRL CM form?
The PEIRL CM form is a supplementary form to the form for creating, modifying or cancelling a sole proprietorship. It is intended for people who choose to run their business as a sole proprietorship with limited liability.
If the microentrepreneur carries out a craft or commercial activity, he or she must attach the PEIRL CM form to the P0 CM form, i.e. his or her declaration of activity. If they are self-employed, the PEIRL PL form must be completed and attached to the P0 PL form.
The PEIRL insert must also be attached to the P2-P4 form for amending or striking off a limited liability sole proprietorship.
The PEIRL form can be submitted to the relevant business formalities center as soon as the company is created, or during its lifetime.
The EIRL and the declaration of assignment of business assets
Unlike a company, a sole proprietorship, whether under the microenterprise regime or not, is not a legal entity separate from its manager. For this reason, companies are referred to as legal entities, while sole proprietorships are referred to as natural persons.
As a sole proprietorship is not a separate legal entity from the entrepreneur, the latter's personal assets are not protected in the event of business debts. However, this can be remedied by opting for a sole proprietorship with limited liability, which is compatible with the microenterprise regime.
The entrepreneur is then required to draw up a declaration of assignment of business assets, listing all the assets needed for his business activity. There are two types of assets:
- Assets required for the business activity, which must be included on the declaration of business asset allocation: these are assets used exclusively for the EIRL, or allocated to it by nature;
- Assets used for business purposes, but which do not fall into the first category and therefore do not have to be declared.
The value of the assets must be specified by the entrepreneur. It is forbidden to voluntarily decrease or increase their value on the declaration. If he does so, he runs considerable risks, as the difference may be claimed from his personal assets. If you decide to assign real estate to your business assets, the valuation must be carried out by a notary.
In addition, the entrepreneur may include joint or undivided assets in his declaration of assignment of business assets, on one condition only: obtain the agreement of the spouse and co-tenant(s), and be able to provide proof of this agreement.
Why opt for a sole proprietorship with limited liability?
The sole proprietorship with limited liability offers a number of advantages. The main advantage is the protection of personal assets, which is particularly important if the entrepreneur is married or in a civil partnership. Not only do they protect their personal assets, but also those of their spouse, if they have not opted for the separation of property regime.
In the event of financial difficulties and business debts, only assets allocated to business assets can be seized. They can only be seized by professional creditors, as personal creditors can only seize personal assets.
The EIRL also allows you to choose your tax regime: you can opt for either corporation tax or income tax. The advantage is that social security contributions are limited to actual remuneration, with professional expenses deducted. Social security contributions are no longer paid on all profits, allowing the EIRL to be managed more efficiently.
Lastly, setting up and managing an EIRL is less restrictive than setting up a company, and the formalities involved are less onerous.
How do I fill in the PEIRL CM form to create an EIRL?
If the PEIRL insert accompanies a business start-up form, whether form P0 CM for craftsmen and tradesmen, or form P0 PL for the liberal professions, it is essential to tick the "Entrepreneur individuel à responsabilité limitée" box on the business start-up form.
For the PEIRL CM Cerfa 14215 form in question, you must first tick the box corresponding to the main document it accompanies, i.e. form P0 CM, form P0 CM microentrepreneur, form P2 CM or form P4 CM.
The PEIRL CM insert can be used by entrepreneurs filing their first declaration of asset allocation, as well as by those amending their declaration. You must therefore tick the corresponding box at the beginning of the form.
Whether it's the first declaration or a modification, the entrepreneur must then enter his identity, as well as his SIRET number if his company is already registered.
The "Declaration of asset allocation" section is reserved for first-time declarants. This declaration can be made with or without the submission of a descriptive statement. If a descriptive statement has been filed, it must be attached to the PEIRL CM form. The entrepreneur can also take over an affected asset. In all cases, it is necessary to tick the appropriate box, then specify the name and purpose of the business activity to which the assets are assigned.
If the EIRL is registered in both the Trade and Companies Register and the Trades Register, you must indicate which register the declaration of asset allocation will be entered in.
The following section is reserved for entrepreneurs who make changes to their declaration of asset allocation. Modifications must be dated, and may concern the name or the object of the assignment. It is also possible to continue the business without retaining the asset allocation, to renounce the asset allocation and the business, or to make a transfer to a natural or legal person.
Finally, box 7, entitled "Tax option(s)", is reserved for people filing their declaration of assignment for the first time. It concerns the tax regime chosen, as well as the different VAT regimes.