SASU or EURL : Optimize your self-employed income
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Summary
When you decide to become self-employed, one of the first choices you have to make is what form of business to set up. The chartered accountants at Tree Partners advisory give us their advice on how to make the right decision.
When you decide to become self-employed, one of the first choices you have to make is what form of business to set up.
The chartered accountants at Tree Partners advisory give us their advice on how to make the right decision.
The aim here is not to propose complex schemes for freelancers that will land you in the Panama Papers! Rather, it's to present ways of optimizing your income.
As most self-employed people are in the form of a SASU orEURL, we'll look at the respective advantages and limitations of each.
Chairman of SASU
This type of company offers many advantages:
- Staying in the general social security system ;
- Distribute dividends at an attractive tax rate;
- No social security contributions if the Chairman does not receive remuneration.
On the other hand, when you pay yourself a salary as Chairman, you have to pay a hefty 86% in social security contributions!
Dividends therefore appear to be a good means of remuneration. The company must first pay corporate income tax, a tax which does not allow for deferred remuneration. There are several ways of avoiding this tax:
- "Load" the company with expense reports that are part of the company's operations;
- Recording mileage expenses ;
- Benefit from vacation vouchers...
The EURL manager
This type of company is attractive for people who need regular income and pay slips to take out a mortgage, for example.
In fact, EURL social security charges amount to "only" 46% of the net salary, and this sum is of course subject to income tax, but is deductible from corporate income tax. The manager will not be an employee, but a "Travailleur Non Salarié", and will not be covered by the general social security system.
Dividends are taxed at a higher rate than under SASU, as they are treated as remuneration.
In short, the main difference between SASU and EURL lies in the way the manager is remunerated, which must be determined according to each individual's personal situation.
In both situations :
There are tax-free solutions, such as investing in a company savings plan (Plan Epargne Entreprise) through a matching contribution system, or a retirement savings plan (Plan d'Epargne Retraite).
There are also more advanced ways of optimizing income, such as setting up a holding company with an SCI (société civile immobilière) to increase your assets and take advantage of any tax losses the latter may incur.
Since every situation is unique, we recommend that you consult your accountant!
To contact Tree Partners on behalf of WEEM :
Ghali Safraoui, Partner
01 81 70 57 71
