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Is it possible to run the same business as a micro-enterprise and as a SASU?

You're working as a micro-entrepreneur and would like to know whether you can carry on the same activity within a SASU. After a brief reminder of the differences between these two structures, we'll explain what is possible and what is strictly forbidden.

What are the key differences between a micro-business and a SASU?

Micro-business

The micro-entrepreneur is a non-salaried worker (TNS). They are affiliated to the social security system for the self-employed (RSI) and benefit from the micro-social and micro-foncier schemes, as long as their sales do not exceed certain limits:

  • 176,200 for a commercial activity (sale of goods, catering with takeaway or on-site sales) and for accommodation services;
  • 72,600 for commercial, craft and independent services.

You can also benefit from basic VAT exemption, provided your sales do not exceed the ceiling set for your business.

Micro-businesses are taxed on their sales. It cannot deduct its actual expenses, but benefits from an allowance that varies according to its activity.

SASU

The SASU is a single-person simplified joint-stock company with great operational flexibility. It must appoint a chairman, who may be a natural person or a legal entity (another company, for example). If the Chairman receives remuneration, he or she has the status of asalaried employee and is affiliated to the general Social Security scheme. The SASU is automatically subject to corporation tax (IS), but may opt for income tax (IR) for a period of 5 years.

The corporate income tax of a SASU is calculated on its profit (sales minus expenses).

The SASU is not limited in terms of sales, which explains why many micro-entrepreneurs choose this legal status when their business grows exponentially.

Is it possible to combine the roles of micro-entrepreneur and president of a SASU?

As a salaried employee, there's nothing to prevent the chairman of a SASU from combining his office with a micro-business activity, provided certain conditions are met. The most important condition is that the two activities must be perfectly separate. This constraint is explained by the fact that the president of a SASU is considered an employee, and must not compete unfairly with his employer. This means that he must not canvass the SASU's customers while wearing the hat of a micro-entrepreneur.

In conclusion, the president of a SASU can carry out a complementary activity with micro-entrepreneur status, but never the same activity.

What's more, given the principle that there's no point in combining two different statuses to carry out the same activity, if you contravene this prohibition, the authorities may carry out a tax audit and reclassify the two companies as a single one. This could also lead to an adjustment of social security contributions.

Does combining the roles of micro-entrepreneur and president of a SASU entail any changes in terms of tax and social security?

You've made sure that the two activities you wish to pursue are quite distinct, and that it is therefore possible to combine the two statuses. Now it's time to consider the consequences.

The tax system

Running a SASU while being a micro-entrepreneur doesn't change the capping rules of the micro-tax regime. So, if you exceed the authorized limits, you will no longer be eligible for the micro-business scheme, bearing in mind that exceeding these limits for two consecutive years will result in you being switched to the sole proprietorship and its real tax regime.

Last but not least, your remuneration as Chairman of a SASU is subject to income tax, as are any profits received under the micro-enterprise scheme.

Social security

The president of a SASU is a salaried executive, while the micro-entrepreneur is self-employed. However, since January 1, 2020, there is no longer any difference between the social security system for the self-employed (RSI) and that of the general scheme, so you will be entitled to the same protection.

How do you go about carrying out two distinct or complementary activities?

If you're running a SASU, you'll need to complete a micro-business declaration file and submit it to the CFE.

If you are a micro-entrepreneur, you must create a SASU, which involves :

  • drafting articles of association ;
  • build up share capital and deposit it ;
  • publish in a legal gazette;
  • register your company with the Registrar of the Commercial Court.

Important: once both entities are up and running, don't forget to ensure that your annual sales do not exceed the limits allowed under the micro-enterprise scheme.