How to start a business ? Once you have your financing plan in place, you need to think about the legal status of your business . This step is also very important when starting a business . Indeed, it has several practical implications: creation formalities, flexibility in day-to-day business management, tax and social security systems, etc.
If you want to open a business , but are unsure about which legal structure to choose, we invite you to try our simulator for free to help you choose the ideal legal form for your project.
The main legal statuses of companies
When you want to set up a business , you will first have to choose between a sole proprietorship and a commercial company. They are not the same thing.
The choice is made according to your project , but above all the number of people who wish to embark on the entrepreneurial adventure.
Individual businesses
A sole proprietorship allows those who wish to go it alone to create their own business and begin their activity with peace of mind. By choosing a sole proprietorship , you can decide to opt for the simplified micro-enterprise regime. We explain the differences.
The sole proprietorship
A sole proprietorship is a structure run by a single person, acting in their own name. This legal form differs from sole proprietorships in that it does not have legal personality. This is also why there is no minimum capital requirement. The entrepreneur’s assets actually constitute your company’s assets.
Another consequence of the lack of legal personality is that your liability is not limited. Thus, your company’s creditors can be reimbursed from your personal assets.
Be careful, however. A new, unique status for sole traders has existed since May 15, 2022. It allows you to automatically separate your personal assets from your professional assets, without declaring professional assets.
Therefore, if you become a sole trader, your personal assets will be protected and your creditors will no longer be able to use your personal assets to get paid.
Also, the tax regime for this type of business is that of income tax . Therefore, your profit will be taxed in the BIC, BNC or BA category depending on your type of activity. In this situation, we say that your business is transparent, the profits made will be added to your taxable income.
The micro-enterprise
Do you want to become a self-employed entrepreneur ? It is indeed possible to create a self-employed business or a micro-business . However, be aware that self-employment is not a legal status. It corresponds to a regime that an individual entrepreneur can opt for. It is actually a specific regime within individual businesses. The main difference between these two statuses lies in the fact that self-employment benefits from reduced accounting and tax obligations .