The company director, supported by his administrative and financial manager, is on the front line when it comes to dealing with the various risks that threaten the survival of his business.
They are particularly important at the company 's inception, when it is relatively strong financially .
The entrepreneur asserts himself as a true business maker, strategist and guarantor of stability.
And yet, the risk of fraud increases daily, as does market volatility.
Entrepreneurs are often forced to take major risks, committing part of their personal assets, making commitments in their own name or guaranteeing the company's results.
In this context, it is possible to build and consolidate your business by paying attention to certain crucial points that will help to secure your situation.
Some bylaws make the director liable for any losses incurred by the company, while others protect his or her personal assets.
In the first case, he will be required to pledge his personal assets (home, vehicles, second homes and other property) if the business generates losses and to repay creditors.
This situation is not without risks, especially in the face of increasingly unstable markets. This is particularly true of traditional sole proprietorships and auto-enterprises.
Since the Macron Act, the principal residence can no longer be seized by professional creditors
In the latter case, liability is limited to the amount of contributions.
If the company is in debt, the partner can only lose the amounts and assets he has contributed to the company's capital, and his personal assets will never be involved. For this reason, it is advisable to set up a SAS, SARL, SASU, EURL or EIRL.
Standing surety for your own business or that of someone close to you is a high-risk commitment. However, in most cases it is an essential step in obtaining the banker 's approval for your financing project.
Although a real sword of Damocles, the risk remains virtual as long as the company continues to honor its creditors.
In the event of default, all the guarantor's assets and present and future income may be seized.
According to SIAGI (Société Interprofessionnelle Artisanale de Garantie Immobilière), 70% of loans to professionals are accompanied by a request for a guarantee.
For this reason, you should avoid acting as guarantor for your company's operations as much as possible.
If this is unavoidable, check out the different types of surety offered by your bank (joint and several surety, personal surety, "omnibus" surety, spouse's surety, other guarantees, etc.).
If you set up or take over a business after leaving your job, you are normally eligible for back-to-work benefits (ARE).
You can keep them in full or in part until you have exhausted your rights, even if you are launching an entrepreneurial project.
Whether or not you are eligible depends on the amount of income you declare from your new activity.
If you set up an EURL or SASU tax-exempt company with articles of association or minutes specifying that the sole shareholder is not remunerated, you can keep the ARE in full.
In the case of an EIRL subject to corporation tax (IS), it will be possible to partially maintain it.
Recent government measures have made it easier to set up a business while still employed, unless your employment contract contains an exclusivity or non-competition clause.
Nearly 20% of new businesses are set up by employees who are working at the time of registration!
This approach helps to secure your personal finances, because in the event of failure, you'll keep your salaried income and won't lose your job.
It's also possible to apply to your employer for a year's leave, renewable once, to set up or take over your own business.
You can also obtain an exemption from social security contributions for the first year of business, if your income does not exceed 120% of the minimum wage.
However, dual activity is not open to professionals belonging to a professional order (e.g., doctors, notaries, lawyers, etc.) or to civil servants.
Embarking on an entrepreneurial adventure therefore requires a careful examination of all the opportunities available to you to optimize your success while minimizing the risks to your business.
Sometimes it's a good idea to seek outside advice. The ultimate aim is to strike the right balance between growth and security.
Written by our expert Paul LASBARRERES-CANDAU
October 8, 2018
