Choose your legal status according to the advantages
What are the advantages of corporate legal status? It’s not always an easy choice when creating your company. Follow the guide!
The choice is always complicated when launching a company. In fact, before starting the different administrative procedures, it is necessary to carefully choose your legal status according to your different needs and the project itself.
The importance of choosing the right legal status
Choosing your legal status is never easy for a variety of reasons. Sometimes, the financial aspect takes precedence over the obligation to protect one’s situation and personal assets when in other casesThe operating potential of the company may be initial or, on the contrary, too large. In all cases, it is almost appropriate to carry out these reflections on a case-by-case basis, although some laws are particularly attractive for sectors of activity with logical explanations to which we will return.
Fortunately today, many special platforms as well as easier access to valuable advice allow you to better choose your status and really adapt your situation to the needs of the future company . Naturally, it is advisable to decide on the status of your company before starting the administrative tasks because, for example, the official publication or the sending of the articles of association to the registry of the competent commercial court logically mentions the type of company created . .
Although no legal status seems perfect in all respects for a company, some may benefit contractors in general.
Whether depending on the activity sector or future needs, what are the main advantages of the legal statuses available when launching your company?
To remember : this list does not include the micro-entrepreneur regime, which is a tax regime and not a legal business in itself, which is as interesting as this individual business for the self-employed.
EI: Advantages of sole proprietorship
Highly valued by workers and merchants, especially the largest sector of activity in terms of the number of companies in France, the sole proprietorship requires very few administrative procedures for its creation.
Subsequently, the same applies because the IE manager is not obliged to publish the annual accounts of the company concerned. In addition, this status is really sufficient for companies with low turnover, which allows them, for example, to gradually grow their company.
EIRL: Advantages of sole proprietorship with limited liability
While it has a lot in common with EI, EIRL has an additional advantage that can be significant, especially for workers. In fact, it is possible with this legal status, to allocate assets to the activity. Thus, personal and professional property are not placed in the same basket and in the event of financial difficulties, there is no possible claim on personal property.
In addition, the EIRL leaves room for a wider choice regarding tax burdens: the manager decides between corporate taxes or income taxes.
EURL: Advantages of sole proprietorship with limited liability
The true company of this name in the eyes of the law, EURL requires the holding of reports and general meetings every year, contrary to what is mandated in the options mentioned.
However, this disadvantage can give way to a certain advantage depending on the case. With no minimum capital required, EURL enables everyone to create a company worthy of the name and logical separation of personal and professional assets.
The responsibility lies with the contribution amount introduced during creation of the company. Due to its simplicity, the EURL status is well suited to being a freelancer.
SARL: Advantages of a limited liability company
If only one advantage of the SARL were to be retained, it would probably be its legal capacity to limit the liability of the partners, as its name suggests. Thus, the protection is absolute in the event of financial problems and this, especially thanks to the separation of property as an example for other legal statuses.
Like the EIRL, the SARL does not require any minimum amount to form the share capital, which may allow some partners to invest in the company without necessarily, a large cash flow.
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SAS / SASU: Advantages of a simplified joint-stock company and a SASU
SAS is a status often chosen by companies in the tertiary sector. Why? For the most part, running a SAS or a SASU when multiple people manage the company, can be managed the way the managers want. At this level, and from an administrative and financial point of view, these are the two legal statuses that leave the most room for the possibilities and sometimes precise choices of the leaders.
To do this, only an entry in the laws of the precise operation of the company is needed in some cases.
In addition, the company is directly linked to corporate tax and allows managers to choose whether or not to pay dividends. However, and as evidence of the almost unlimited capacity for innovation of this type of business, it is also possible to opt for income tax.
Finally, and since we know that company directors are not always as protected as possible, the choice of this status allows the president to rely on the general social security system. In case of any problem, this aspect can be of great help to the person. discussed and logical, for the maintenance of the company.
