What is the difference between SASU and self-employed?

Before deciding to choose your company status, it is important as a would-be entrepreneur to understand the significant differences between SASU (Sole Simplified Joint Stock Company) and micro-enterprise mode, two options designed for entrepreneurs wishing to operate alone.

Although their goal is the same, SASU and the Micro-Entreprise self-employed regime have different characteristics.

What is individual entrepreneurship/Micro-Entreprise?

The self-employment mode, whose name has been changed to Micro-Entreprise, is often a source of confusion, but in fact it is not a separate form of business.

Indeed, self-employment is a simplified social and tax regime specific to an individual enterprise (IE). In other words, individual entrepreneurs who chose this status chose the path of ease of creation and management of their activities. Micro-Entreprise mode allows you to test the activity as an employee or before becoming a 100% entrepreneur.

When operating as a sole proprietor, Micro-Entreprise acts on its own behalf. That is why the activities carried out within the framework of Micro-Entreprise are classified as “individuals”. With Micro-Entreprise status, there is no legal distinction between the business and its owner. This means that the entrepreneur is responsible for debts incurred in the course of his professional activities, without putting all his personal property at risk. The reform of individual entrepreneurship in May 2022 established protective rules for entrepreneurs.

Please note that income earned by the self-employed is subject to income tax (IR) rather than corporation tax (IS).

In order to remain eligible for Micro-Entreprise, it is important to comply with specific annual turnover limits. These figures change regularly, and for 2023 the continuation of the self-employed/Micro-Entreprise regime will depend on the following indicators:

• For activities in the sale of goods, as well as the provision of accommodation (for example, classified tourism and bed and breakfast, excluding furnished accommodation, the ceiling on it should not exceed 77,700 euros), the annual turnover should not exceed 188,700 euros.
• Unregulated liberal professions or those covered by Cipav are also subject to a turnover ceiling of €77,700.

• For services falling under the category of industrial and commercial profits (BIC) or non-profit profits (BNC), the turnover ceiling is set at €77,700.

Additionally, Micro-Entreprise status benefits from simpler accounting rules. In fact, a self-employed person does not need to prepare a balance sheet and profit and loss account for the activities of his business. Responsibilities will be limited to maintaining a ledger of income and expenses that records, in chronological order, the sales and purchases made during your accounting year. This makes Micro-Entreprise bookkeeping easier and more accessible.

What is SASU (Simplified Sole Joint Stock Company)?

A SASU (Simplified Joint Stock Company with One Member) is a legal corporate entity subject to the legal regime of SAS (Simplified Joint Stock Company). SASU is a company that can be created by one individual or legal entity.

A special feature of SASU is the limitation of liability of the sole shareholder, who is liable only to the extent of the amount of contributions made. The SASU Constitution plays an important role as it defines many aspects. It offers a lot of flexibility from the moment the company is formed, which requires the company founder to write it carefully, taking into account the various situations that may arise.

SASU has several characteristics, including:

• Freedom of share capital: As the sole shareholder, you have the right to determine the amount of share capital of SASU, a minimum of 1 euro upon creation of the company.
• Choice of Manager: As the sole shareholder of SASU, you have the right to independently manage the company. However, you also have the option to delegate control to another person, whether an individual or a legal entity.

This flexibility allows you to choose the best option based on your personal skills and preferences.

Evolution towards SAS. Another feature of SASU is its ability to evolve towards a multi-entity SAS (simplified joint stock company) form by integrating new partners. This evolution allows the company to develop its capabilities by adding new shareholders and diversifying existing skills and resources. This can be especially beneficial if you want to expand your business and benefit from a legal structure better suited to future growth.

Unlike self-employment, SASU does not have a turnover cap, however it is important to note that certain turnover thresholds may be taken into account when applying certain tax regimes. For example, to benefit from the Micro-Entreprise regime and VAT franchise, there are turnover limits that cannot be exceeded.

SASU operates in Corporation Tax (IS) mode by default. This means that the tax calculation is based on the profit the company makes after deducting expenses. Typically the tax rate is set at 25%.

However, it is also necessary to declare the remuneration of the president of the sole simplified joint stock company SASU, but this time within the framework of income tax.

The sole shareholder also has the opportunity to choose to subject the company to income tax (IR). To do this, certain conditions must be met:

• The company's turnover must not exceed 10 million euros.
• The company must be no older than 5 years.
• The company must not be listed on a stock exchange.
• The company must carry out commercial, craft, consulting or agricultural activities.
• SASU should not have more than 50 employees.

Having met these conditions, SASU's sole shareholder can elect an income tax regime, thereby offering an alternative to normal corporate taxation.

Thus, the legal status of SASU and the self-employment regime make it possible to create a small business and start operations. SASU allows you to develop your business and provides the legal basis for merging with one or more shareholders. In Micro-Entreprise, a sole proprietor can start a business and choose to create a SASU if the business of his company requires it. Although setting up a Micro-Entreprise is simpler than a SASU, it requires regular monitoring of turnover to ensure turnover thresholds are met.