Self-employed and micro-enterprises: a mode widely used by business creators

Set up a business as a sole proprietor/micro-entrepreneur and maintain your other activities.

From January 1, 2016, the self-employed regime was renamed microentrepreneur. This is a single simplified plan. The principle is to allow the creation of a business as a job seeker, student, employee, civil servant, professional or even retired. In this way, a microentrepreneur can carry out his activities and accumulate other income, such as a salary or an old-age pension.

The microenterprise regime is not itself a legal form. This simplified regime for individual entrepreneurship : declarations and payments of contributions and social security contributions are withheld in proportion to turnover. If a self-employed person has not made any contributions, they will not have to pay any contributions.

From an operational perspective, regulated liberal professions cannot benefit from the microenterprise regime. On the other hand, for this type of profession, individual entrepreneurship is possible, as well as creating a company. A liberal practice company (SEL) is particularly suitable for this type of activity, especially for people who want to join forces under one structure.

Simple statement of activity

To simplify the formalities for creating a business, declaring activities in micro-enterprise mode is carried out in the form of an online declaration or in paper form. Some websites allow such registration. The website livret-entreprises.fr centralizes all declarations. However, if you already know that you are involved in a craft activity, for example, you can connect to the website cfe-metiers.com.

If you do not complete your activity declaration online, you will need to obtain one of the following two forms depending on the nature of your activity:

• form P0 TsMB Microentrepreneur for commercial and craft activities;
• form P0 PL Microentrepreneur for liberal activities.

Criteria that must be met to receive benefits under the self-employed program in 2019

THAT maximum revolutionpro rata temporis doubled during the calendar year in 2018.

• 70,000 euros for services;
• 170,000 euros for activities related to the sale of goods.
• In the case of mixed activities, the turnover must not exceed 170,000 euros, including a maximum of 70,000 euros in the service sector.

THAT exceeding threshold values endure. But if the amounts are exceeded for two consecutive financial years, the micro-entrepreneur will be subject to real tax treatment for the following year. It is important to review information regarding these thresholds and tolerances annually.

VAT, exemption limited to different amounts

Although turnover amounts under the micro-enterprise regime doubled in 2018, VAT amounts remained unchanged.

If you earn more than €33,200 from providing services or €82,800 from selling goods, you will have to issue a VAT invoice to your clients (and return it to the government). This regime change applies from the first euro billed above the threshold you are concerned about. Therefore, you should carefully monitor your activities and keep in mind that VAT exemption concerns only half of the permitted turnover.

Some changes made to the plan in 2019

Turnover declarations must be submitted online at autoentrepreneur.urssaf.fr, regardless of the amount of turnover.

In the case of a turnover of less than 5,000 euros in 2018, a micro-enterprise is exempt from the minimum corporate property tax, as well as from additional duties under the CFE Treaty (chamber of commerce and industry taxes and industry fees, as well as chamber of commerce and industry taxes and crafts fees) for financing of consular chambers.

The exemption from start-up tax (ex Accre) applies to all micro-entrepreneurs, provided that the turnover in the first year of activity is below the annual social security ceiling (€40,524 in 2019).

Withholding tax and self-employed

For micro-entrepreneurs already operating in 2018, from January 1, 2019, who did not choose to pay a tax deduction, a deposit is withheld from their bank account on a monthly or quarterly basis, calculated by the tax service depending on the last known annual turnover.

If you are creating your activity in 2019, NK offers three options:

• declare income received in 2019 in September, then pay the due tax for 2019 by December 31, 2020,
• pay advance payments before the first declaration in September 2019, based on the indicators of the tax administration simulator,
• select the latest payment and pay income tax (IR) at the same time as your social security contributions every month or quarter.

There Covenant law provides for other provisions that are still being discussed in Parliament. This applies, for example, to the right to special compensation for business interruption paid by the Pôle emploi. It can be paid to self-employed workers, including micro-entrepreneurs who have ceased their activities due to bankruptcy proceedings or judicial liquidation.

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