Legal form comparator
There is no single “best legal form”. This page shows the options most closely aligned with your chosen priorities, along with their conditions and limitations.
Annual revenue from your offers: 0 €. Estimated actual costs: 0 €.
- No revenue has been entered in the Offers module yet: the estimates below remain theoretical.
Micro-entreprise (simplified sole trader)
Administration: low · Setup: Free (online registration)
Estimated contributions
0 €
Estimated taxes
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Disposable income
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Reinvestment capacity
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Tax treatment: Personal income tax with a flat-rate allowance (micro tax regime)
Director’s social security scheme: Self-employed — simplified micro social security scheme
Conditions, benefits and limitations
Conditions
- Trading alone as a sole trader
- Revenue below the regime’s annual thresholds
- No deduction for actual expenses
Benefits
- Very simple setup and administration
- Contributions proportional to revenue received
- Simplified bookkeeping
Limitations
- No actual expenses deductible
- Revenue thresholds
- No dividend distributions
- Losses cannot be offset
Calculation method
- Contributions = revenue × micro social contribution rate.
- Taxable base = revenue × (1 − flat-rate allowance).
- Disposable income = revenue − actual expenses paid − contributions − personal income tax.
- Actual expenses are not tax-deductible but still have to be paid.
Sole trader under the actual-profit regime
Administration: medium · Setup: Low: registration and accounting fees
Estimated contributions
0 €
Estimated taxes
0 €
Disposable income
0 €
Reinvestment capacity
0 €
Tax treatment: Personal income tax on actual profits (BIC or BNC)
Director’s social security scheme: Self-employed social security status (TNS)
Conditions, benefits and limitations
Conditions
- Trading alone
- Accrual accounting and business tax return
- Corporate tax election possible in some cases (not modelled here)
Benefits
- Actual expenses deductible
- No share capital
- Personal assets protected since the unified sole trader status reform
Limitations
- No dividends
- All profits taxed even if not withdrawn
- More accounting requirements than the micro regime
Calculation method
- Profit = revenue − actual expenses.
- TNS contributions = profit × rate ÷ (1 + rate).
- Personal income tax applied to profit after contributions.
- Profits are taxed even if not withdrawn.
EURL subject to personal income tax
Administration: medium · Setup: Around €200 to €500 in registration fees, excluding support
Estimated contributions
0 €
Estimated taxes
0 €
Disposable income
0 €
Reinvestment capacity
0 €
Tax treatment: Personal income tax — tax-transparent company
Director’s social security scheme: Sole shareholder-manager: self-employed social security status (TNS)
Conditions, benefits and limitations
Conditions
- One individual shareholder
- Personal income tax election time-limited in some cases
- Articles of association, share capital and legal notices
Benefits
- Company structure with deductible actual expenses
- Later switch to corporate income tax possible
- Lower TNS contributions than employee-equivalent status
Limitations
- Profits taxed at progressive rates even without withdrawals
- No dividend-based tax planning
- Company formalities
Calculation method
- Profit = revenue − actual expenses.
- TNS contributions = profit × rate ÷ (1 + rate).
- Personal income tax applied to profit after contributions.
- Profits are taxed even if not withdrawn.
EURL subject to corporate income tax
Administration: high · Setup: Around €200 to €500 in registration fees, excluding support
Estimated contributions
0 €
Estimated taxes
0 €
Disposable income
0 €
Reinvestment capacity
0 €
Tax treatment: Corporate income tax
Director’s social security scheme: Sole shareholder-manager: self-employed social security status (TNS)
Conditions, benefits and limitations
Conditions
- One shareholder
- Manager pay separate from company profits
- Bookkeeping and annual accounts
Benefits
- Separation of director income and company profits
- Retained profits subject to corporate tax, useful for reinvestment
- Lower TNS contributions than employee-equivalent status
Limitations
- Majority-manager dividends partly subject to contributions above a capital-linked threshold
- Less comprehensive social protection than employee-equivalent status
- More complex accounting
Calculation method
- Operating profit = revenue − actual expenses.
- TNS contributions = allocated pay × rate ÷ (1 + rate).
- Taxable profit = operating profit − cost of pay.
- Corporate tax: reduced rate up to the annual threshold, then standard rate.
- Director’s personal income tax applied to pay (10% allowance for employee-equivalent status).
- Any dividends taxed under the flat-rate levy (PFU).
SASU subject to corporate income tax
Administration: high · Setup: Around €200 to €600 in registration fees, excluding support
Estimated contributions
0 €
Estimated taxes
0 €
Disposable income
0 €
Reinvestment capacity
0 €
Tax treatment: Corporate income tax
Director’s social security scheme: President with employee-equivalent status (general scheme, no unemployment insurance)
Conditions, benefits and limitations
Conditions
- One shareholder
- Pay for a corporate office, not necessarily an employment contract
- Flexible articles of association, annual accounts
Benefits
- Better social protection (supplementary pension, income protection)
- Dividends not subject to social security contributions
- Investor-friendly structure that can become a SAS
Limitations
- High social contribution costs on pay
- No entitlement to unemployment insurance
- More technical payroll and accounting administration
Calculation method
- Operating profit = revenue − actual expenses.
- Cost of pay = net pay × (1 + employee-equivalent director contribution rate).
- Taxable profit = operating profit − cost of pay.
- Corporate tax: reduced rate up to the annual threshold, then standard rate.
- Director’s personal income tax applied to pay (10% allowance for employee-equivalent status).
- Any dividends taxed under the flat-rate levy (PFU).
SARL
Administration: high · Setup: Around €300 to €800 in registration fees, excluding support
- Requires at least 2 shareholder(s).
Tax treatment: Corporate income tax (conditional personal income tax election not modelled)
Director’s social security scheme: Majority manager: TNS; minority or equal-share manager: employee-equivalent status
Conditions, benefits and limitations
Conditions
- At least two shareholders
- Legally regulated articles; approval required for share transfers
- Annual accounts filed
Benefits
- Established, protective legal framework
- Suitable for family businesses or two-shareholder projects
- Lower contributions for a majority manager
Limitations
- Limited flexibility in the articles
- Less suitable for raising investment
- Majority-manager dividends partly subject to contributions
SAS
Administration: high · Setup: Around €300 to €900 in registration fees, excluding support
- Requires at least 2 shareholder(s).
Tax treatment: Corporate income tax
Director’s social security scheme: President with employee-equivalent status (general scheme, no unemployment insurance)
Conditions, benefits and limitations
Conditions
- At least two shareholders
- Highly flexible articles of association
- Annual accounts filed
Benefits
- Extensive flexibility in the articles
- Standard structure for bringing in investors
- Dividends not subject to social security contributions
Limitations
- High social contribution costs on pay
- No unemployment insurance for the president
- Articles require careful legal drafting
5 legal form(s) available based on your data. The ranking depends on the priority “ Simplicity”: change it to see the ranking update.
These estimates simplify real-world circumstances (minimum contributions, startup exemptions and household situations). Have a professional review your choice before registering.