Individual entrepreneur (EI): what you need to know
Verified 19 December 2023 - Directorate for Legal and Administrative Information (Prime Minister)
The status of the individual entrepreneur (IS) allows to exercise a proprietary activity. Individual business business Indeed, the creation and management of a
Microcompany individual business is also a This sheet concerns the individual contractor subject to the standard speed.
To find out the status of the micro company you can consult the corresponding card.
When you want to exercise a activity aloneindividual business So, the taking is a very good option. The formalities of creating and managing the company are simpler than those of a business. For example, you won't need to write bylaws or set up a share capital.
Individual business L', unlike the business, shall not lead to the creation of another legal personality. It's attached to your person, which is why a person cannot have more than one individual company individual business (1 individual = 1).
You can engage in a commercial, craft, agricultural or liberal activity.
Individual business When you create a automatically separated.
Your occupational heritage is composed of all that is useful to your professional activity. For example, it is your business premises, your business bank account.
Your personal assetsFor its part, it is composed of everything that is not part of your professional heritage: for example, your booklets, your secondary residence.
This separation protects your personal wealth from your possible professional debts. However, if you do not comply with your tax or social obligations, the tax administration or social security bodies can obtain the reimbursement of their claims on your two assets.
FYI
For more information on the separation of assets, see the corresponding card.
Your remuneration depends on the company taxation system. You are in principle subject to income tax (IR) but it is possible to opt for business tax (SI) by asking to be treated as a EURL: titleContent.
Income tax (IR)
When you are subject to income tax, your remuneration depends on your revenue you have earned and what's left after you meet your tax, social and business obligations.
Taxation on businesses (IS)
Once you have opted for business tax, you can collect dividends when your company makes a profit. You can also plan a fixed remuneration.
To learn more about your compensation, you can visit the corresponding card.
You are in principle subject to the IR but it is possible to opt for the IS by asking to be assimilated to a EURL: titleContent.
Income taxes (IR)
Your tax system depends on your activity and your turnover.
Sale of goods, objects, supplies and foodstuffs to take away or consume on the spot
You generate industrial and commercial profits (BIC: titleContent) imposed on income tax. Depending on the amount of your turnover, you will be subject to one of the following schemes:
- Simplified real plan: your turnover is between €188,700 and €840,000.
- Normal real regime: Your turnover is greater than €840,000.
To learn more about the actual tax regimes for industrial and commercial profits (simplified and normal), you can consult the relevant sheet.
FYI
Thresholds for micro-company are not mentioned (€188,700), for more information, see the corresponding card.
Provision of accommodation
You generate industrial and commercial profits (BIC: titleContent) imposed on income tax. Depending on the amount of your turnover, you will be subject to one of the following schemes:
- Simplified real plan: your turnover is between €188,700 and €840,000.
- Normal real regime: Your turnover is greater than €840,000.
To find out the real tax regimes for industrial and commercial profits (simplified and normal), you can consult the relevant sheet.
FYI
Thresholds for micro-company are not mentioned (€188,700), for more information, see the corresponding card.
Provision of services
You generate industrial profits (BIC: titleContent) and commercial or non-commercial profits (NBC: titleContent) which are subject to income tax. Depending on the amount of your turnover you will be subject to one of the following schemes:
- Simplified real plan: your turnover is between €77,700 and €254,000.
- Normal real regime: Your turnover is greater than €254,000.
To find out the actual tax systems of BIC and NBC, you can consult the relevant sheets.
FYI
Thresholds for micro-company are not mentioned (€77,700), for more information, see the corresponding card.
Taxes on businesses (IS)
You can also decide to opt for taxation business tax. You will then have 5 years to give up the option. Beyond these five years, there is no turning back.
For more information on the business tax option, see the corresponding card.
You are subject to the social security scheme for self-employed persons. The amount and calculation of your social security contributions vary according to your income.
They represent approximately 45% of your income from operations. When you have little or no income, it goes down and you have to pay minimum contributions to continue to benefit from social protection.
Learn more about your social contributions and your social protection, you can consult the relevant sheets.
Individual business You can forward your family, to a salaried worker or to a third party (e.g. a business). The transmission may be carried out by way of free (donation) or in title expensive (assignment or business supply).
Transmission may involve the goodwill or on theyour entire professional heritage (goodwill, real estate, sureties and professional debts).
This transmission shall give rise to the payment of a registration fee at the check-in desk.
Please note
Individual business To learn more about the transmission of a consult the relevant file.
The purpose of this table is to compare the main characteristics of the status of sole trader with that of the sole partner of an SASU or EURL.
IS | SASU | EURL | |
|---|---|---|---|
Number of partners | No partner | 1 | 1 |
Leader | Entrepreneur | ||
Share capital | No social capital | ||
Taxation system | Possible option for SI | Possible option for IR | Possible option for SI |
Social security of the director | |||
Corporate securities | No securities | Actions | Shares |
Transmission of company | Free | Free | Free |
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The public service accompanying companies
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Status of the sole trader
Industrial and Commercial Profits (BIC)
Non-Commercial Profits (NTB)
Option for SI