or insurance a vocational occupation of the building

Although a very simplicity, the new status of the contractor is integrated in a complex legal environment that these new contractors, like any business leader, will not be able to ignore indefinitely, especially if they create activities which have vocation to develop. As the diversity of the articles at their disposal to engage in an activity may their reserve solutions much more favourable than the new status.

Legal limits

The creator of business must be wary of false administrative simplifications. Thus, exemption from registration in the register of commerce and corporations (CHN) or the directory of trades (RM), presented as a relief substantial legal formalities to the autoentrepreneur has not only benefits. It deprived, indeed, of certain rights associated with the registration including the right to a renewal of the commercial lease or the possibility to agree a contract of lease-stewardship.

The future autoentrepreneur should also keep in mind that all activities are not open freely since many professions may be exercised only in justifying a qualification or specific diplomas (Baker, hairdresser, etc.) or insurance a vocational (occupation of the building).

Above all, and it is undoubtedly the main shortcoming of this status: the autoentrepreneur as individual entrepreneurs is responsible for unlimited on his personal heritage of the debts it contracting professional. This status is therefore not suitable for investment risk or intensive activities. In these cases, for a solo activity, the creation of a EURL should rather be privileged, this type of society to better protect his personal assets.

Tax limits

Fiscally, the status of the autoentrepreneur may be a bad choice, when activity generates significant loads. Indeed, regardless of the actual amount of expenses, the autoentrepreneur will always taxed on its turnover, not profit. More penalizing, where a deficit, the autoentrepreneur cannot be deducted from other income nor the reporter on the results of the following years.

Similarly, since it cannot be subject to VAT, it cannot deduct the tax which it supports in its purchases. A disadvantage to be even more penalizing that its activity will require substantial investments. Creators who engage in an activity primarily aimed at professionals will also interest to opt for VAT liability and, therefore, to renounce the status of the autoentrepreneur.

Finally, the favour is the autoentrepreneur exemption from business tax for its first three years of activity must be relative, act with, lately, multiplied the situations in which entrepreneurs benefit from this tax benefit. And most importantly, this tax should no longer constitute an obstacle to the creation of company, since its near-total removal is announced for 2010!

Accounting limits

Lucky the autoentrepreneur does have as accounting obligation to hold a book mentioning the amount and the origin of the revenues and a record summarizing a year retail purchases! But again, this simplification can be double-edged: not taking the habit of keeping accounts and to forecast documents, the autoentrepreneur may soon find themselves deprived of visibility on its performance and its prospects, and unable to fly to the nearest its activity. Even if they are not obliged to, those who want their business develops will take a number of accounting documents or entrust this task to a chartered accountant.

Social limits

During the first two years after the creation of a business, the social contributions to resolve are much the same, that the contractor selects the autoentrepreneur status or that it is the "microsocial" of common law regime. The economy of contributions through the new status will be significant only over a turnover of 25,000 euros for sales activities and 14,000 euros for the benefits of services and the following years.

In addition, the autoentrepreneurs should be aware that if their social security contributions are low, the resulting are smaller than those of an employee. The contributions paid by the autoentrepreneur indeed match the only mandatory regimes. Thus it is not insured in case of disease in the first year of its activity, and his pension rights are less than those acquired under the general scheme. For a good social supports, it will need to take into account the cost of the contributions to non-compulsory retirement and welfare supplemental plans which it will be interest to subscribe. In addition, the autoentrepreneur does not in principle of the insurance company fails.

Finally, if it is only a single client, the autoentrepreneur must be careful to not be in a State of dependency on this partner. A constructive labor situation in which it will not benefit from the protection of the right to work of employees...