Income of an individual entrepreneur

Verified 30 August 2024 - Directorate for Legal and Administrative Information (Prime Minister)

The sole trader is generally subject to income tax (IR). His remuneration is determined according to his turnover.

The amount of your company's turnover is the sum of your sales (goods and services) over a period of time equal to 12 months. This period is referred to as a exercise.

The amount of your turnover must be declared the tax administration and the Urssaf so that taxes and social security contributions are levied.

As an individual entrepreneur, you have no salary per se. The amount of your income will depend on your profit: that is, the amount remaining after all expenses have been deducted from your sales.

Examples of such charges are:

There is no rule, you can decide to pay yourself a fixed remuneration every month or from recalculate your compensation every month. However, you must have a treasury positive.

To help you determine your remuneration, the Urssaf provides you with a simulator:

Individual entrepreneur's revenue simulator

FYI  

Where the sole trader opts for his company to be subject to business tax (IS), then his company is likened to a EURL: titleContent. In this case, the rules that apply to determine the contractor's remuneration are those of the business manager.

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