All work deserves a salary, but it also deserves a status. When the spouse of a company director actively participates in the company's activities, he or she can justify a legal existence. This was not the case for a very long time. Stéphanie Swiklinski, a qualified notary, gives us some details on the subject.
Why is it important to have legal status?
For a long time, the spouses who helped run the business had no status or recognition. As a result, they were "left with nothing", especially when it came time to retire. They had no legal existence. Since the law of August 2, 2005, the spouse of a company director working with his or her spouse has been obliged to choose a status. The aim is to give their work a legal framework, "a legal existence". This regulation applies to the spouses of shopkeepers, craftsmen, the self-employed and the liberal professions. They have two objectives:
- to give legal recognition to the spouse's activity in the family business;
- to protect the spouse in the event of death, maternity, unemployment, etc.
The PACTE Act of May 22, 2019 has reinforced this protection. Indeed, in the absence of a choice, the spouse will be deemed to have chosen the status of salaried spouse. Before this law, spouses could find themselves in a very tricky situation. If they were not registered in any register (trade or company register, trade register, etc.), and were working in the company without an employment contract, they would be considered to be engaged in concealed work, a criminal offence punishable by 2 years' imprisonment and a fine of 30,000 euros! Today, this is no longer possible.
How do I declare my spouse's status?
It is up to the business owner to declare his or her spouse's status when registering the business, or at the latest within two months of the start of the spouse's involvement in the business. The declaration takes the form of a form to be returned to the Centre de Formalités des Entreprises:
- for shopkeepers, to the Chamber of Commerce and Industry,
- for craftsmen, to the Chambre des Métiers,
- for the self-employed, to URSSAF.
If you're married, in a civil partnership or cohabiting, you're obliged to declare your spouse's professional activity as part of your business (although it's not possible to declare your spouse's activity as part of your business in all cases). The choice of status will determine the professional rights and obligations of the business owner's spouse. This choice is not definitive; it is always possible to change status at a later date.
What are the different options available?
This statusis for those who want to be on an equal footing with their spouse, who have supported the project from the outset with their spouse, and who intend to get involved in the business with them! This status is suitable for married, civil union or cohabiting spouses . The spouse owns shares in the company, is a partner and effectively participates in the company's activities. Legally, they are entitled to share in the profits as in any other company. Their liability is generally limited to the amount of their contributions. From a social point of view, they are affiliated to the Régime Social des Indépendants (RSI). This means that the associate spouse personally pays contributions for all risks (sickness, family allowances, old age, etc.).
Salaried spouse: If you want to be involved in the life of the company while enjoying all the benefits of a salaried employee, you should opt for this status. The spouse is then employed by the company as a salaried employee. They take part in the company's activities under a contract of employment, and receive a salary commensurate with their qualifications. They are affiliated to the normal Social Security system. For tax purposes, social security contributions are deducted from the company's profits. The spouse has the same benefits as a "normal employee".
Collaborating spouse: giving your spouse a "helping hand" without putting all your "eggs" in one basket... The collaborating spouse must be married or in a civil partnership to qualify for this status. They collaborate in the company's activities, but do not receive any remuneration. They are affiliated to the basic and complementary self-employed workers' scheme (RSI) and to the company director's health insurance scheme as a beneficiary.
Stéphanie Swiklinski