Becoming an auto-entrepreneur means benefiting from a favorable tax regime, simplified management and streamlined accounting. However, it's essential to understand the steps to follow, the legal obligations and the pitfalls to avoid, in order to secure your project.
In this article, we'll look at the steps you need to take to set up a self-employed business, the criteria you need to meet, and advice on how to successfully launch and develop your business with peace of mind. Whether you want to set up your own business or opt for a professional domiciliation solution, discover all the keys to starting up your business with confidence.
Understanding auto-entrepreneur status
What is auto-entrepreneur status?
The status of auto-entrepreneur, also known as micro-entrepreneur, is a simplified form of sole proprietorship. It enables anyone wishing to be self-employed to set up a business, with streamlined administrative procedures and a favorable tax framework. The choice of business address plays a key role in administrative management and professional image.
Introduced in 2009, this scheme aims to facilitate access to entrepreneurship in France. It is particularly well suited to freelancers, craftsmen, shopkeepers and service providers. With a simplified sales declaration and a fixed rate of social security contributions, it appeals to many entrepreneurs looking for flexibility.
Difference between auto-entrepreneur and micro-entrepreneur
Legally, there is no difference between these two terms. In 2016, the law merged the auto-entrepreneur and micro-entrepreneur statuses under a single name: micro-entrepreneur. However, in common usage, the term auto-entrepreneur is still widely used.
The micro-enterprise system is based on :
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A sales ceiling: €188,700 for commercial activities and €77,700 for services in 2024.
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A simplified tax system : you can opt to pay income tax at source.
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Specific social security contributions:proportional to sales, at a rate of 12.8% for the sale of goods and 22% for the provision of services.
Advantages and disadvantages of the status
The auto-entrepreneur scheme offers many advantages:
- Streamlined administrative procedures.
- No minimum capital required to set up a business.
- Simplified accounting, no balance sheet required.
- Advantageous tax system with basic VAT exemption under certain thresholds.
However, this status also has its limits:
- Sales ceilings that must not be exceeded, or you will fall into a more restrictive regime.
- Limited access to certain social benefits and no unemployment insurance.
- Obligation to pay social security contributions even in the event of zero sales.
The auto-entrepreneur status is ideal for starting up a business, but it's essential to know the specifics to avoid any unpleasant surprises.
Conditions for becoming an auto-entrepreneur
Who can become an auto-entrepreneur?
The auto-entrepreneur status is open to any individual wishing to set up a self-employed business. It can be adopted as a principal activity or as a secondary activity in addition to salaried employment, retirement or student status.
However, to become an auto-entrepreneur, certain legal conditions must be met:
- Be of legal age or an emancipated minor.
- Have an address in France.
- Not be under a ban on running a business.
Foreign nationals from outside the European Union must also hold a residence permit authorizing them to engage in self-employed activity.
Eligible and prohibited activities
The auto-entrepreneur scheme covers a wide range of activities, classified into three categories:
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Commercial activities: sale of goods, catering, e-commerce.
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Craft activities: hairdressing, masonry, vehicle repair.
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Freelance activities: consultants, trainers, graphic designers.
However, certain professions cannot be exercised under this status, in particular :
- Regulated professions (lawyers, doctors, chartered accountants).
- Certain construction-related activities require ten-year insurance.
- Agricultural activities covered by Mutualité Sociale Agricole (MSA).
Before starting out, it's essential to check whether your activity is compatible with the micro-enterprise scheme.
Sales ceilings and combination with other statuses
The auto-entrepreneur scheme is subject to sales ceilings that must not be exceeded:
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188,700 for the sale of merchandise.
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77,700 for services.
Finally, this status can be combined with salaried employment, retirement or unemployment, but specific rules apply depending on the entrepreneur's situation.
How do I become an auto-entrepreneur?
Becoming an auto-entrepreneur is a quick and easy process. However, it is essential to follow a number of steps to ensure that your business is set up in compliance with legal requirements.
Step 1: Declaration of activity on Guichet Unique
As of January 1ᵉʳ, 2023, all business start-up formalities must be carried out via the Guichet Unique des Entreprises accessible on the website formalites.entreprises.gouv.fr.
This platform replaces the former Centres de Formalités des Entreprises (CFE) and centralizes all administrative procedures.
When making the declaration, the contractor must provide :
- Full identity (surname, first name, address).
- The nature of your business (commercial, craft or self-employed).
- Choice of tax and social security system.
Once the declaration has been validated, an acknowledgement of receipt is sent by e-mail, confirming that the business has been registered.
Using a domiciliation company allows you to separate your personal address from your business activity, while benefiting from simplified mail management. The advantages of a domiciliation company are numerous, especially for entrepreneurs wishing to give their business a more professional image.
Step 2: Registration with the National Business Register (RNE)
Registration depends on the business activity:
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Merchants must register with the Registre du Commerce et des Sociétés (RCS).
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Artisans must register with the Répertoire des Métiers (RM).
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The liberal professions do not require specific registration.
This registration allows you to be officially recognized as an auto-entrepreneur.
Step 3: Obtaining your SIRET number
Once the declaration has been validated, INSEE assigns a SIRET number to the company. This number is essential for invoicing customers and carrying out administrative procedures.
Step 4: Open a dedicated bank account (if applicable)
If sales exceed €10,000 for two consecutive years, the auto-entrepreneur must open a dedicated bank account. This account separates business transactions from personal expenses and simplifies financial management.
Step 5: Registration with social security bodies
The auto-entrepreneur is automatically affiliated toURSSAF, which handles payment of social security contributions. Depending on the activity, they are also covered by the Sécurité sociale des indépendants (SSI) social security system for the self-employed.
It is also possible to opt forACRE (Aide à la Création et à la Reprise d'Entreprise), which provides a partial exemption from social security contributions for the first year.
Step 6: Compulsory insurance
Certain types of insurance are compulsory, depending on your business:
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Professional liability (RC Pro) for self-employed professionals and service providers.
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Decennial insurance for building and civil engineering contractors.
Taking out insurance protects you against potential professional disputes.
Once these steps have been completed, the auto-entrepreneur can officially start his business and invoice his first customers.
Administrative formalities to be aware of
Once you've set up your own business, you'll need to comply with a number of administrative formalities to ensure compliance and avoid potential penalties.
Declaration of sales and payment of social security contributions
Auto-entrepreneurs must declare their sales every month or quarter on theURSSAF website. This declaration is used to calculate social security contributions, which are deducted directly from sales:
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12.8% for merchandise sales.
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22% for services and liberal professions.
If no sales are made, the declaration remains compulsory, but no charges are payable.
The auto-entrepreneur tax system
The auto-entrepreneur is subject to the micro-enterprise tax system, with two options:
Classic taxation
Sales are declared as industrial and commercial profits (BIC) or non-commercial profits (BNC), and income tax is paid after application of a flat-rate allowance.
Withholding tax
Income tax is paid at the same time as social security contributions, at a rate of 1% to 2.2% of sales, depending on the activity. This option is available subject to income conditions.
VAT and basic VAT exemption
The auto-entrepreneur scheme is exempt from VAT, which means that you don't have to charge VAT to your customers. However, if your sales exceed the following thresholds :
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91,900 for commercial activities.
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36,800 for services.
He must then apply VAT and fulfill additional accounting obligations.
Accounting obligations and administrative management
Although simplified, accounting management imposes certain obligations:
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Keep a receipts book, noting each receipt.
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Keep a purchase register (mandatory for commercial activities).
- Keep all invoices and supporting documents for 10 years.
Complying with these formalities ensures sound management of your self-employed business and avoids the risk of penalties in the event of an inspection.
Choose your business and get off to a good start
Launching a business as an auto-entrepreneur requires careful thought beforehand. It's essential to choose a field that matches your skills, market demand and growth opportunities.
How do you identify a profitable sector?
Before taking the plunge, it's important to analyze the viability of your project. Here are a few points to consider:
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Study demand: is there a real need for your service or product?
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Analyze the competition: who are the main market players and how can you differentiate yourself?
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Assess profitability: what are the costs associated with the business and the sales potential?
Certain activities are particularly well suited to the auto-entreprise system:
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Online services: web copywriting, graphic design, coaching.
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Commerce: e-commerce, crafts, home-made products.
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Personal services: tutoring, administrative assistance, cleaning.
Draw up a strategy before taking the plunge
Once the business has been defined, it's advisable to draw up a mini-business plan, which will serve as a guide for launching the project. This should include :
- Short- and medium-term financial objectives.
- Communication and customer prospecting strategies.
- Necessary investments (software, hardware, training).
A good start also requires an effective online presence. A website, social networking profile and SEO strategy make it easier to attract potential customers.
Financial assistance to get you off to a good start
There are several ways to support the creation of a self-employed business:
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ACRE (Aide à la Création et à la Reprise d'Entreprise): partial exemption from social security contributions for the first year.
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CAPE (Contrat d'Appui au Projet d'Entreprise): Supportby a dedicated structure.
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Microcredit: financing available to entrepreneurs with little personal capital.
Starting a self-employed business requires a great deal of preparation, but with a clear strategy and the right resources, it's possible to succeed and build your business quickly.
Mistakes to avoid as an auto-entrepreneur
Becoming an auto-entrepreneur is a straightforward process, but there are some common mistakes that can slow down the development of your business and lead to administrative and financial complications.
Failure to declare sales on time
Auto-entrepreneurs must declare their sales toURSSAF on a monthly or quarterly basis, even if they have no income. Failure to declare sales on time or at all will result in financial penalties, and may ultimately lead to deregistration.
Poor anticipation of social security and tax charges
One of the most common pitfalls is failing to plan for the payment of social security contributions and taxes. Although levies are calculated on sales rather than profits, it is essential to set aside a portion of income to avoid cash-flow difficulties.
Exceeding sales ceilings without anticipation
The auto-entreprise scheme imposes annual ceilings:
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188,700 for commercial activities.
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77,700 for services and liberal professions.
If these thresholds are exceeded, the auto-entrepreneur switches to a more restrictive tax and accounting regime, requiring anticipation and a possible transition to another legal form (EURL, SASU).
Failure to take out compulsory insurance
Depending on the type of business you're in, certain types of insurance are compulsory, such as professional civil liability (RC Pro) ordecennial insurance for building and civil engineering contractors. Failure to take out such insurance can result in legal penalties in the event of a dispute.
Neglecting prospecting and business management
A common mistake is not devoting enough time to customer acquisition and administrative management. To ensure the long-term future of your business, it's essential to :
- Develop an effective communication strategy.
- Optimize financial and accounting management.
- Anticipate market trends to adapt your offer.
Avoiding these mistakes will ensure a smooth, profitable business over the long term.
Domiciliating your auto-business
Domiciliation is an essential step in setting up a self-employed business. It defines the company's administrative and tax address, which will be used for all official correspondence.
Home-based business: advantages and disadvantages
Most auto-entrepreneurs choose to domicile their business at their personal address. This option is free and simple, but it does have certain disadvantages:
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Advantages: no additional cost, easy administration.
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Disadvantages: invasion of privacy, risk of refusal by landlord or condominium manager.
Before opting for this solution, it is advisable to check your rental contract or co-ownership regulations to avoid any restrictions.
Using a domiciliation service
An interesting alternative is to use a domiciliation company such as SeDomicilier. This service offers several advantages:
- A prestigious address to give the company a more professional image.
- Managing mail and administrative documents.
- The possibility of benefiting from additional services (mail scanning, telephone hotline).
By choosing a professional domiciliation solution, self-employed entrepreneurs gain flexibility and protect their personal address.
Other direct debit options
It's also possible to set up your own business in a coworking space or business incubator, offering a suitable working environment and a dynamic professional network.
Making the right choice when it comes to domiciliation contributes to the credibility and successful development of your business.
Developing and sustaining your business
Setting up a self-employed business is a first step, but it takes time and an effective strategy to make it grow and prosper. There are a number of ways to find customers, optimize management and ensure the long-term future of your business.
How do you find your first customers?
One of the main challenges for a self-employed entrepreneur is to attract his first customers. Several strategies can be implemented:
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Create a website and optimize its search engine optimization (SEO) to appear in Google searches.
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Use social networks (LinkedIn, Instagram, Facebook) to promote yourself and connect with prospects.
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Register on freelancing platforms like Malt or Fiverr to reach a wider audience.
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Activate your personal and professional network: word-of-mouth remains an excellent acquisition lever.
Developing an online presence and maintaining a professional image can rapidly increase your visibility.
Administrative and financial management
Good organization is essential to ensure the profitability of your self-employed business. Here are a few best practices:
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Anticipate tax and social security charges by setting aside part of your sales.
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Use management tools such as billing software to automate certain tasks.
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Ensure compliance with accounting obligations (revenue book, customer invoices).
Regular monitoring of finances helps to avoid unpleasant surprises and ensure the long-term future of the business.
Developing your business
Over time, an auto-entrepreneur may consider expanding his or her offer or changing legal status. Here are a few ideas for development:
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Diversify services or propose complementary offers.
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Set up a company (SASU, EURL) if sales exceed the ceiling.
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Continuous training to stay competitive in the marketplace.
With the right strategy in place, you can ensure the growth and stability of your business.
Conclusion
Theauto-entrepreneur status is an accessible and flexible solution for anyone wishing to set up their own business with simplified procedures. Thanks to its advantageous tax regime and streamlined accounting, it enables you to start up a business with fewer administrative constraints.
However, to succeed as an auto-entrepreneur, you need to be well prepared. It's essential to choose the right business, comply with legal and tax obligations, and anticipate possible changes. Rigorous financial management, active prospecting and good organization are key to ensuring the long-term future of your project.
Last but not least domiciliation of a micro-business is a point not to be overlooked. A solution like SeDomicilier enables you to obtain a professional address and improve your image while simplifying administrative management.
By following these tips, you'll be able to develop your business with complete peace of mind and maximize your chances of success as an auto-entrepreneur.
