When auto-entrepreneurship is not the solution

Auto-entrepreneurship is a good solution, if your work do not consist of employing others, or paying to others for services.

If the project you are working on needs to employ people, or pay for services of other people, then auto-entreprise is not the solution, and you have to think about a SASU.

Let me explain you. In auto-entreprise you pay your URSSAF taxes on the total turnover. In a traditional company like a SASU, you pay your taxes on the benefit, not on turnover. Hence auto-entreprise becomes a bad choice if you need to pay other people from your turnover.

Let's do a calculation. Imagine that you did a project of 1000 euros, where you have to pay others 500 euros for jobs they did in your project. As an auto-entrepreneur, you will pay taxes on the 1000 euros. As a traditional business owner, you will pay your taxes on 500 euros (or less, once other expenses are gone).

Author : Sourav Choudhury

Sourav Choudhury is a social entrepreneur living in France since 2003 and working for the cause of Indian community of France, since 2007. He is founder of multiple projects: the largest social network of the Indian community of France, a French language school for english speaking expatriates, this website, and few other projects.