How to Choose the Right Legal Status for Your Business in France: 5 Key Factors

How to Choose the Right Legal Status for Your Business in France: 5 Key Factors

One of the most important and complex questions for a beginning entrepreneur in France is choosing the right legal status. I, Zukova Inna, have helped dozens of entrepreneurs make informed choices, and today I'll share key criteria with you.

Factor 1: Expected Annual Turnover

  • Under €77,700 for services? Micro-entrepreneur might be ideal to start

  • Above this amount? Consider EURL or SASU

  • Planning to scale? SASU offers more flexibility

Factor 2: Personal Asset Protection

  • Micro-entrepreneur: minimal administrative burden but personal responsibility

  • EURL/SASU: creating a legal entity protects your personal assets

Factor 3: Tax Optimization

  • Micro-entrepreneur: simplified tax system

  • EURL: optimization possibilities through dividend payments

  • SASU: flexibility in compensation distribution

Factor 4: Administrative Burden

  • Micro-entrepreneur: minimal reporting

  • EURL: mandatory full accounting

  • SASU: most complex administrative requirements

Factor 5: Future Plans

  • Business sale? SASU offers better opportunities

  • Attracting investors? SASU is more attractive to investors

  • Easy closure? Micro-entrepreneur is the simplest option

Important advice: Don't decide based only on your current situation. Think about where you want to see your business in 2-3 years.