How to choose a business form in France: complex decisions in simple terms
Choosing a business form is like choosing shoes for a marathon. At the start, it may seem like any pair will do, but by the middle of the distance, you’ll know exactly where it’s tight. Especially in France, where there are more options than cheeses and as many nuances as a tax return.
We figure out what forms of business exist, who they are suitable for, and how to avoid bureaucratic pitfalls.
What forms of business are there?
In France, it's like a good menu: everything depends on your appetite and ambitions. Here are the main options:
- Micro-entreprise (auto-entrepreneur) - for freelancers and those who start “lightly”;
- EURL / SARL - a structure for those who want a clear distinction between “personal and business”;
- SASU/SAS — flexible, scalable forms that startups and investors love.
How do you know what's right for you?
Ask yourself:
- Do I plan to make a lot of money or am I just testing the niche?
- Am I ready to manage full-fledged accounting?
- Will I work alone or with partners?
- Do I want to pay myself a salary and deduct expenses?
- How important is it for me to limit personal liability?
By answering, you are already getting closer to the right choice.
Micro-entreprise: when simple is exactly what you need
For many beginners, this is a workhorse. Minimum formalities, maximum focus on the project.
Pros:
- If there is no income, there are no social contributions.
- First Year CFE Tax Exemption
- Simple reporting, without mandatory accounting.
- It is possible to work under a VAT franchise (TVA), as in other forms.
Minuses:
- Turnover limits (in 2025 – €77,700 for services).
- There is no deduction for actual expenses.
- Reputationally, it is perceived as “entry level”.
Read a real case about how we opened an individual enterprise in France for a teacher French language
When it's time to "grow up": SAS, SARL, EURL
These forms are suitable for those who:
- Needs flexible cost management;
- Plans to scale the business or attract partners and investments.
Important: in SASU, EURL, SARL you can also not pay VAT - the same TVA franchise applies as for micro. It becomes mandatory only after exceeding the thresholds (in 2025 - €37,500 for services).
But such forms require administrative and accounting records, as well as a full package of constituent documents upon registration.
Example from practice:
Artem, a specialist in equipment repair, worked as a micro-entrepreneur for a year. His expenses were high - rent, tools, transport. He understood that he was paying contributions from revenue, not from profit. He contacted us for advice and we transferred him to EURL, where he began to pay himself income and deduct expenses. Now his business is growing, and taxes are under control
Checklist: Have you chosen the right form?
- You know your annual turnover and expenses
- Do you understand whether you need a salary and accounting?
- Are you planning to hire or work with partners?
- Consider how the form affects taxes and TVA
If 2 or more points raise doubts, it is better to discuss them with an expert.
What does the consultant say?
There is no universal form. Micro is a great start, but only if you understand its limitations. SAS or SARL are growth tools, but will require more commitment and discipline. I do not promote "what is simpler" - I select "what is more effective".
Want to choose a form of business that works for you, not against you?
Sign up for a consultation - in 15 minutes we will determine not only the legal form, but also a tax strategy that suits your lifestyle and goals.
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