Being independent, becoming your own boss, many dream! Created in 2008, the status of auto-entrepreneur, now called micro-entrepreneur, allowed more than a million French to take the plunge. Still, funding its activity often requires the use of credit. http://leisurequest.net for more.
What is a self-entrepreneur?
An autoentrepreneur, or micro-entrepreneur, is a self-employed worker. Its status is similar to that of other liberal workers, except that the regime to which it adheres is much simpler. The taxes, duties and charges of a self-employed entrepreneur are proportional to his turnover and are paid only if he has exercised his activity. The difference is important because until 2008, a self-employed worker had to pay his expenses, most often in advance, whether he got contracts or not. Eager to push the French to create their own work, the government has proposed this simplified formula which is a great success. Depending on whether you are a craftsman, a trader, or a freelance worker, the scheme has some specificities (special taxes or the amount of turnover not to be exceeded).
How does one become a self-entrepreneur?
Becoming a self-entrepreneur is easy, fast and requires only a few steps:
• register on the online platform of auto-entrepreneurs. This operation is easy and fast. It is at this stage that one specifies whether one opts for the levy of the levy of income tax (withholding tax) or not (payment of your taxes in one time after annual declaration).
• Once the registration number has been obtained, it is possible to issue invoices immediately.
Registration in the register of auto-entrepreneurs does not involve any costs.
What are the charges of the auto-entrepreneur?
The expenses of the auto-entrepreneur vary according to his turnover, which can not exceed a certain amount, except to see the regime switch to the classic liberal status:
• 82,200 euros per year for an activity related to the sale of goods, products, food to take away or consume on site, or housing supply;
• € 32,900 for a service activity (freelance worker).
The expenses of the auto-entrepreneur include:
• social security contributions: they vary from 13.4% to 22.9% of turnover, but can be reduced (5.8%) at the beginning of the activity for the unemployed in the form of assistance to the unemployed person creating or taking over a company (ACCRE), as well as for people residing in the overseas departments;
• the financial contribution of companies from the second year of activity;
• taxes for room and business fees or chamber of trades for tradesmen and craftsmen.
Note that the auto-entrepreneur is not subject to VAT that can not be applied to these invoices and can not recover in case of purchase of equipment. The invoices it issues must also include the words “VAT not applicable under Article 293B of the General Tax Code”.
What investments for a self-entrepreneur?
The elements in which an autoentrepreneur must invest are of different natures and depend of course on the activity carried out. As much as an independent tax adviser or an editor have to invest only in computer and communication tools, and can work from home, as a craftsman may need a machine tool, offices or specific premises to store merchandise or raw materials. To this must be added advertising to publicize its activity, travel expenses, etc. The bill can be high while waiting to return in his expenses!
How to finance your self-entrepreneur activity?
To start your business, you need cash. Depending on the region, a self-employed entrepreneur may have the loan of honor, microcredit, and of course the classic consumer credit. A personal loan is often a good solution to start your business as a self-entrepreneur, because the monthly payments, well calculated, will not affect the budget. This allows the self-employed worker to keep several months while waiting to cash his first bills. An assigned credit can also be used if it includes a purchase of equipment. In any case, it is important to plan a business plan when you want to borrow to start an activity. This will make it easier to discuss your project with a financial partner.