Going freelance or franchise?
As you think about opening your store, you are probably wondering whether you should develop your business as an independent or as a franchisee :
With networks present in many sectors (organic grocery stores, furniture stores, cultural products), franchising can be interesting. It allows you to have the support of an existing structure and benefit from the reputation of an already established brand. You can also receive support when starting your business.
In return, entering such a network often has a higher cost than opening an independent business due to the entry fees and the payment of royalties that are requested. The franchise also requires compliance with its concept (sign, store layout), which limits your freedom, more or less depending on the network.
Choosing the most suitable form is very important because it has consequences on the tax regime ( income tax , corporate tax ), the social protection of the business manager, the initial financial investment (obligation or not of a minimum share capital), and on the protection of your personal assets (distinction between professional and personal assets).
Create a sole proprietorship
A classic sole proprietorship : This type of structure is ideal for entrepreneurs who want to get started simply and quickly . The sole proprietorship offers simplified management since the entrepreneur and the company form a single legal entity . This means that the profits generated by the activity are directly linked to the entrepreneur’s personal assets, implying that the latter is personally responsible for any debts that may arise. The sole proprietorship allows for great freedom of action and decision-making, favoring immediate responsiveness to market opportunities. In addition, it does not require a minimum share capital at the time of creation, which makes it an accessible option for those starting out with limited resources. However, it is essential to manage your finances well to avoid confusion between personal and company funds.
Micro -enterprise : Self-employment status isn’t really recommended for starting a business. It limits your turnover and doesn’t allow you to deduct your actual expenses or charge VAT. However, you only need to file a simple declaration to get started, and the accounting is relatively straightforward. Finally, you benefit from a simplified tax and social security system.
Create a company alone or with others
The EURL (single-member limited liability company) or the SARL (limited liability company) : there is no difference between these legal statuses except that the EURL has a single partner, unlike the SARL which has at least two. It is necessary to constitute share capital, but the law does not provide for a minimum amount . Note that the drafting of the company’s articles of association is strictly regulated by law. It is possible to deduct their expenses from their operating income and to choose to tax their profits with IS or IR, which can be strategic in the context of a business. Finally, as a manager, the partner is considered a TNS: the amount of contributions is lower than in an SAS (or SASU), but social protection is also less comprehensive.
The SASU (single-member simplified joint-stock company) or the SAS (simplified joint-stock company) : these are the same legal forms. It has the same advantages and disadvantages as the EURL, except that it offers greater flexibility in drafting the articles of association. In addition, the sole shareholder president is an assimilated employee and therefore benefits from more extensive social protection. However, he is not entitled to unemployment benefits.