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Earning a Living
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 04/10/2007, 17:33
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Christian
Joined on 23/08/2004
Posts 32
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Advantages and disadvantages of a SARL/EURL
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I have been registered as Proffessionale
Liberale for the past 5 years; I pay full cotisations and am registered for TVA.
However my work is beginning to dry up,
so I need to make plans.
I would like to set up a business in which
I can continue to do what I am doing now (furniture and product design), but
supplement it with other things. i.e.
- Cabinet Making
- Building
- Gardening
- Export
I hope to earn in excess of the limits set
for a micro-enterprise, so I am thinking of setting up either a SARL or an EURL.
I have visited the APCE website, but I
still have some questions.
- What is the simplest way to set up?
- Apart from the initial administration costs, is it any more expensive
or tax inefficient than being a Proffessionale Liberale?
- Does anybody know the advantages/disadvantages of SARL/EURL’s?
- Do I set up as SARL/EURL and register it as doing as many
different activities as I can think of?
- I know that different departments treat this is slightly different
ways, does anybody know about the Gers in particular.
Many thanks, Christian
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05/10/2007, 21:32
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Nick Trollope
 
Joined on 23/08/2004
Broons, Dept 22
Posts 2,460
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Re: Advantages and disadvantages of a SARL/EURL
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You can't be a cabinet maker (or builder or gardener) as a PL, you would need to register with the Chambre de Metiers (and possibly the Chambre de Commerce, too), before you could set up any regime.
An SARL and a EURL are essentially the same thing - limited companies (ie., like a UK limited company, your personal liability is limited to that which you put into the company). EURLs are for individuals, and SARL are for more than 1 (director) - the EURL doesn't really exist in the UK.
1. Use an accountant (actually, a SA/EURL must have an accountant).
2. No, I think not. There may be minor differences, but the bottom line won't add up to much . The taxation type is different.
3. Humm.. As an individual (an enterprise individuelle), you are liable for all the debts of the business, you have no personal liabilty for commercial debts against an EU/SARL. However, getting credit for a new SARL will be impossible, without personal guarantees, which removes a major advanage.
4. You can. It will cost you more.
5. I don't think that this is true.
Nick www.aplaceinfrance.com
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11/10/2007, 17:03
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mandycats
Joined on 07/06/2005
Posts 24
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Re: Advantages and disadvantages of a SARL/EURL
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hi, as i understand it (i'm sure there are others more knowledgeable than myself) an EARL is your best chance of earning reasonable income if you have a good turnover. this is because you must draw a set wage every month (this amount may possibly be limited) but you can then draw dividends on your company every quater (ie pay yourself a lump sum) at a much more reasonable tax rate. this is effective if you turnover about 100k. under a normal regime you would only be left with about 29% of your turnover (not very much ) with EARL you are free to earn the equivalent of upto 40-65% depending on individuals. an earl you can set up on your own with you being the sole shareholder and the only boss!
with a sarl you will need other directors - 2 or more and of course you may then start getting into shareholders etc. very complicated!
we have been advised to upgrade from a micro business to an earl when our turnover reaches the 76k limit - which doesnt actually take that long with high value goods (like yours are). Try and find a local government business advisary service (tourist information or the marie are a good place to start asking - even the assistant social is a good source of information) they are usually free and give you honest unbaised advice - it is ours (and a few of our friends - who are french) experience that accountants are primarily concerned with their own affairs! but a good one is obviously necessary - its just finding them!
as for the chambers you will have to register at the chamber of commerce - i think ALL business have to be registered there first anyway then the chamber de metiers for other work. it is expensive - costs are about 7k per annum but you may be paying some of that already. It may well be worth the expense if you can get a couple of jobs lined up to pay for it in advance. there is the work if you look for it - its just how much you pay out before you get pay IN!
This information is as i understand it. i hope this helps and the best of luck with your expansion.
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11/10/2007, 18:32
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LesFlamands
Joined on 10/09/2004
24
Posts 235
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Re: Advantages and disadvantages of a SARL/EURL
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As far as I am aware, unlike a limited company in the UK the principal director (Gerant) of an SARL or EURL does not benefit from the limited liability but is responsible for all the debts of the company. In the case of the SARL the associate directors do benefit from the limited liability. You can protect your personal assets by other means - see your Notaire and don't forget your cheque book.
Regards Charles
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12/10/2007, 11:26
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Nick Trollope
Joined on 23/08/2004
Broons, Dept 22
Posts 2,460
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Re: Advantages and disadvantages of a SARL/EURL
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 LesFlamands wrote: | | As far as I am aware, unlike a limited company in the UK the principal director (Gerant) of an SARL or EURL does not benefit from the limited liability but is responsible for all the debts of the company. In the case of the SARL the associate directors do benefit from the limited liability. You can protect your personal assets by other means - see your Notaire and don't forget your cheque book. |
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No, the rules are much the same as the UK, except where fraud is concerned.
Nick www.aplaceinfrance.com
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23/12/2007, 15:28
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scarfish
Joined on 20/12/2007
Posts 12
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Re: Advantages and disadvantages of a SARL/EURL
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Digging up an old thread a bit I suppose....do apologise for that, but, It's right on the subject that happens to be bothering me at the moment.
I've read all the comments made, and it's very interesting.
But I'm left with a question about the correct move to make for someone who is currently "micro-bic" and needs to change registration because of a pre-viewed higher income.
As I understand, there is an option to move from the "micro-bic" to a "bic-real" status, or to form a societe EURL,( the SARL option does not actually concern my own case). The EURL set up has been fairly well explained already in this thread, but not the other option of resting with the "bic" but exceeding the income limit of the micro,and becoming as my accountant termed it, "bic-reel".
The Question; So in your opinions, what are the negative points of just remaining BIC, compared to going for the EURL?
(Shame life has to be so complicated really is'nt it....)
We're all just Tax producing livestock, and don't forget it!...... mais la vie est belle!
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France Forum » Living » Earning a Livin... » Advantages and disadvantages of a SARL/EURL
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