The world of work has been changing in recent years, with the proportion of self-employed people in France on the rise. Executives are also affected by this wave of change, as they often choose to become self-employed at some point in their careers.
Whether you want to free yourself from the constraints of salaried employment , or use the experience you've gained to benefit a more personal project, becoming a consultant is the right solution. Once you've made this choice, you'll need to go through the usual lengthy administrative formalities.
What legal, social and tax status should a consultant adopt?
Becoming a consultant means choosing between three types of legal form:
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Micro-entreprise as an auto-entrepreneur. Easy to set up and attractive for start-ups, it nevertheless has its limits, especially in terms of image.
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Single-member company; EURL or SASU. This legal form is more reassuring for prospects and customers, but more cumbersome and costly to organize.
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Sole proprietorship with a possible option for EIRL. A more balanced alternative that seems to suit a large number of consultants.
In addition to these proposals, "portage salarial" is also available, and proves to be a good compromise for consultants. This status places the consultant in a salaried position, while retaining his or her independence.
All the tasks inherent to his activity are in his hands, but the payment of services will be established by the "société de portage".
The latter retains a commission and takes care of settling the charges before paying the consultant the amount due.
The advantages of freelance administration include affiliation to the general employee scheme and contributions to unemployment insurance.
Depending on the legal form chosen, the consultant will be subject to either the general scheme or the RSI. Let's get into the details!
Membership of the general scheme
This social status applies to consultants operating under a SASU. They benefit from the same social security system as salaried employees, and can contribute to the company's pension funds. To receive remuneration, the consultant must draw up a payslip, not an employment contract.
Social protection under this scheme is relatively costly, with 80% of social contributions levied on net wages.
RSI affiliation
The RSI, or now Sécurité Sociale des Indépendants (Social Security for the Self-Employed), is subject to the other types of structure. It covers sickness and maternity, daily allowances and family allowances. For retirement, disability and death cover, the consultant is affiliated to CIPAV.
Social protection is much less expensive with a 40% share of social contributions
If a consultant applies for auto-entrepreneur or micro-enterprise status, these charges will be calculated at 23.30% of revenues received.
Like the social security system, the consultant's tax status will depend on the legal form of his company. When working on behalf of a company, the consultant will be subject to corporation tax (IS). On the other hand, when working as a "portage salarial" with a company that pays corporate income tax (IS), the consultant will be subject to income tax (IR).
When the consultant is self-employed, he or she is taxed on the basis of non-commercial profits (BNC). This applies to sole proprietorships, EIRLs, EURLs and SASUs.
However, it is possible to take advantage of the micro-BNC system and benefit from social deductions.
In terms of VAT, the consultant must invoice his customers. Depending on the legal form adopted, he will also have to file a VAT return on a monthly, quarterly or annual basis.
Becoming a consultant means taking advantage of a number of schemes to adapt your activity to a particular legal, social and tax status. In addition to this diversified choice, the consultant's domicile will play a part in the decision-making process.
While consultants often opt to set up their head office at home, commercial domiciliation is an appropriate solution.
In return for a monthly subscription, the worker can have an address in a prestigious neighborhood at a lower cost. In addition to this great visibility, a wide range of made-to-measure services will be available to the consultant.
The choices are now in your hands!
Written by our expert Maeva Girardot
February 13, 2018
