The keys to successfully setting up your own business

Understanding the auto-entrepreneur legal system

The auto-entrepreneur status is a simplified form ofsole proprietorship. It allows any entrepreneur to set up a business with reduced tax and administrative burdens. In 2024, this system imposes specific sales thresholds:

• 188,700 € for commercial activities, such as the sale of goods or catering.
• 77,700 € for services and the liberal professions.

Respecting these thresholds is crucial to maintaining auto-entrepreneur status. If you exceed them, you'll need to consider another legal framework, such as a classic sole proprietorship or a company (SASU, EURL).

Understanding the auto-entrepreneur legal system

The auto-entrepreneur status is a simplified form ofsole proprietorship. It enables any entrepreneur to set up a business with reduced tax and administrative burdens. In 2024, this system imposes specific sales thresholds:

• 188,700 € for commercial activities, such as the sale of goods or catering.
• 77,700 € for services and liberal professions.

Respecting these thresholds is crucial to maintaining auto-entrepreneur status. If you exceed them, you'll need to consider another legal framework, such as a classic sole proprietorship or a company (SASU, EURL).

Formalities for setting up an auto-entrepreneur business

Setting up an auto-entreprise is a simple process, accessible to everyone. Here are the essential steps:

1. Choose your activity: You can opt for a commercial, craft or liberal activity, depending on your skills and sector of interest.
2. Declare your activity online: This declaration is made on the official Urssaf website or via the guichet-entreprises.fr platform. Once your application has been validated, you'll receive a SIRET number identifying your auto-entreprise.
3. Registering with the appropriate registry: Depending on your activity, you may need to register with the Registre du Commerce et des Sociétés (RCS) or other specific registries.

Formalities for setting up an auto-entreprise

Setting up an auto-entreprise is a simple process, accessible to everyone. Here are the essential steps:

1. Choose your activity: You can opt for a commercial, craft or liberal activity, depending on your skills and sector of interest.
2. Declare your activity online: This declaration is made on the official Urssaf website or via the guichet-entreprises.fr platform. Once your application has been validated, you'll receive a SIRET number identifying your auto-entreprise.
3. Registering with the appropriate registry: Depending on your activity, you may need to register with the Registre du Commerce et des Sociétés (RCS) or other specific registries.

Choosing the tax and social security regime for auto-entrepreneurs

Two tax options are available to auto-entrepreneurs:

• The prélèvement forfaitaire libératoire (flat-rate withholding tax): This system allows you to pay your taxes at the same time as your social security contributions. The rate applied varies between 1% and 2.2%, depending on your activity.
• The classic system: You declare your sales and are taxed on income according to a progressive scale.

In social terms, auto-entrepreneurs are covered by the Sécurité sociale des Indépendants (SSI) scheme, and their social security contributions are calculated on the basis of their sales.

Choosing the tax and social security regime for auto-entrepreneurs

Two tax options are available to auto-entrepreneurs:

• The prélèvement forfaitaire libératoire (flat-rate withholding tax): This system allows you to pay your taxes at the same time as your social security contributions. The rate applied varies between 1% and 2.2%, depending on your activity.
• The classic system: You declare your sales and are taxed on income according to a progressive scale.

In social terms, auto-entrepreneurs are covered by the Sécurité sociale des Indépendants (SSI) scheme, and their social security contributions are calculated on the basis of their sales.

Accounting obligations for auto-entrepreneurs

Although auto-entrepreneurs have lighter accounting requirements, certain obligations remain:

• Keep a receipts book: this document must list all amounts received.
• Keep a purchase register (for sales activities).
• Invoices must be archived for at least 10 years.
• Mention "auto-entrepreneur" or "micro-entreprise" on all quotes and invoices.

Accounting obligations for auto-entrepreneurs

Although auto-entrepreneur accounting has been streamlined, certain obligations remain:

• Keep a receipts book: This document must list all amounts received.
• Keep a purchase register (for sales activities).
• Invoices must be archived for at least 10 years.
• Mention "auto-entrepreneur" or "micro-entreprise" on all quotes and invoices.

Managing your auto-entrepreneur's growth

If your auto-entrepreneur business grows rapidly and exceeds sales thresholds, it will be necessary to change its legal status. This transition to a more appropriate legal status, such as a company (SASU, EURL), will entail changes in terms of taxation and social security contributions. It is therefore essential to anticipate this change in order to manage your development.

Managing the growth of your auto-entreprise

If your auto-entreprise grows rapidly and exceeds sales thresholds, it will be necessary to change its legal status. This transition to a more appropriate legal status, such as a company (SASU, EURL), will entail changes in terms of taxation and social security contributions. It is therefore essential to anticipate this change in order to manage your development properly.

By following these steps, setting up an auto-entreprise becomes a clear and accessible process. It's a flexible legal status, suitable for small businesses or complementary activities, while offering simplified day-to-day management.

By following these steps, setting up an auto-entreprise becomes a clear and accessible process. This legal system gives you a flexible status, suited to small structures or complementary activities, while offering simplified day-to-day management.