Everything you need to know before starting your own business

Setting up a business is an adventure that requires a period of reflection. SeDomicilier invites you to discover the essential stages to confirm the profitability of your project and choose the right solutions for the legal form and domiciliation of your future company. It's essential to bring your project to life by following the different phases in the life of a business, such as 'I'm starting up', 'I'm managing' and 'I'm developing'.
Starting a business
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Domiciliation + company creation
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Creating my company

Defining your business project

Identify your project idea

Identifying your project idea is the crucial first step in setting up a business. It's essential to take the time to think about your idea and define it clearly. Ask yourself questions such as: What is my objective? What problem will I solve? What is my target market? What are my competitive advantages? Take notes and create a document that summarizes your project idea. This in-depth reflection will enable you to lay a solid foundation for the creation of your business.

Study the profitability and soundness of your business start-up project

Business plan and forecast

Before setting up a new business, it's important to study the profitability and financial soundness of your project. Entrepreneurs estimate their sales forecasts. There are two essential documents to determine the viability of your project:

  • The business plan focuses on the company's overall strategic vision;
  • A provisional financing plan with financial details and projected results.

The provisional financing plan enables you to assess the financial resources to be mobilized for a business start-up project. It details personal contributions and loans. At this stage, it's crucial to accurately assess your financial needs, and to find the right solutions to ensure your project's success.

Conducting market research

Market research is essential for understanding your target market and validating your project idea. Collect data on your market, competitors and potential customers. This will help you identify opportunities and threats, and adjust your project idea accordingly. Use tools such as surveys, interviews and data analysis to carry out your market research. This step will give you a better understanding of the environment in which you'll be operating, and enable you to fine-tune your strategy.

Business start-up assistance

Depending on the nature of your project and your personal situation, business start-up assistance is available. France Travail offers support for unemployed people wishing to set up or take over a business. You may be able to maintain your unemployment benefits, or receive a lump-sum payment of part of your benefits. These aids are called :

  • ACRE: Assistance for setting up or taking over a business, offering exemption from social security contributions for 12 months.
  • ARCE: Assistance for taking over or starting a business, corresponding to payment of 60% of outstanding ARE (Allocation d'Aide au Retour à l'Emploi) entitlements.

What are the main legal forms for setting up a business?

What are legal forms?

Legal status, also known as legal form, provides vital information on the structure of the company and the legal framework governing it. It has an impact on all areas of the business: social, tax, accounting and commercial.

To choose the legal status best suited to your entrepreneurial profile, it's important to take several factors into account:

  • The nature of the business ;
  • Number of associates ; 
  • The legal personality of associates (legal entities or individuals) ;
  • The tax system you're looking for.

There are two main types of legal status for companies in France.

Sole proprietorship

Thesole proprietorship (EI) is a legal form specially designed for entrepreneurs wishing to go it alone. It is therefore not possible to form a partnership. Two forms of EI are available:

  • sole proprietorship (EI);
  • sole proprietorships under the micro-enterprise scheme (formerly known as auto-entreprise).

Micro-entrepreneurs are subject to sales ceilings. Operating expenses cannot be deducted from sales. They are also exempt from basic VAT, subject to certain thresholds.

Whether you choose the classic sole proprietorship or the micro-enterprise version, the formalities for declaring your business are simplified. Management procedures are simplified. This is a flexible model for entrepreneurs wishing to pursue a second professional activity, test a business concept, etc.

Single-member companies: EURL and SASU

Sole proprietorships are legal forms designed for entrepreneurs wishing to operate on their own. There are two types of sole proprietorships:

  • One-man limited liability company (EURL);
  • Société par actions simplifiée unipersonnelle (SASU).

EURL and SASU have a single shareholder. They are legal entities with their own assets. Personal assets are separate from company assets. In the event of default, the entrepreneur is liable only to the extent of the share capital contributed.

The SASU offers a great deal of freedom in the organization of company operations. As for the EURL, the manager 's remuneration entails lower social security contributions than with a SASU.

Multi-member companies: SARL and SAS

There are many different types of partnerships:

  • Limited liability company (SARL);
  • Société par actions simplifiée (SAS);
  • General partnership (SNC) ;
  • Société anonyme (SA).

We will focus on the two most common forms: the SARL and the SAS.

The choice of legal form depends on the nature of your project and your business plan. In a SARL (limited liability company), share capital is divided into several categories. In a SAS, the shares are integrated into a single category. While SARLs can be managed by several directors, SASs have a single president. The president is covered by the "assimilés-salariés" scheme, whereas the manager of a SARL is directly covered by the "Travailleurs non salariés" (TNS) scheme.

Which address to choose for your future company?

What is commercial domiciliation?

Domiciliating your company is a strategic choice. Commercial domiciliation is the designation of a postal address for your registered office. It is equivalent to the administrative address of the sole proprietorship or company. It enables you to receive correspondence of a social, fiscal or legal nature. It is the official means of postal communication between service providers, customers and business partners.

The address of your company's head office must appear on many documents:

  • Extrait K-bis;
  • Company bylaws ;
  • Commercial documents: estimates, invoices, etc;
  • Corporate documents: employment contracts, employee communications, etc.

How can you domicile your business?

There are several solutions for domiciling your head office. The choice depends on the structure of your company and your activity. Commercial premises are an excellent idea if you receive customers. However, it involves a number of operating costs: rent, energy, telephony, etc.

Individual entrepreneurs (EI, auto-entrepreneur, SASU, EURL) can opt for a coworking space in certain cases. Several companies elect commercial domiciliation within a structure, and use shared resources. This is an attractive solution for entrepreneurs wishing to develop synergies.

As an extension of the coworking space, the domiciliation company deploys highly competitive advantages. Entrepreneurs can rent coworking space, offices and meeting rooms. They benefit from a P.O. box to domicile their head office and receive their mail. Mail can be digitized and forwarded as required. Last but not least, a domiciliation company enables you to reduce your business property tax (CFE ) while enjoying a prestigious address.

Finally, the solution of domiciliation at themanager's address is possible, particularly for micro-entrepreneurs.

The creation process

Once you've studied the feasibility of your business start-up project by drawing up your business plan and financing plan, you need to decide on the legal form to adopt and the best solution for domiciling your head office. Once these three preparatory stages have been completed, you can proceed with the formalities for launching your business:

  • Drafting the bylaws ;
  • Filing of share capital;
  • Publication in a Journal d'annonces légales (JAL) ;
  • Declaration to the Guichet unique.

It is also important to be aware of the administrative formalities required for any changes to the company's articles of association or information. This includes online procedures and the different formalities to be followed to make these changes.

Micro-businesses benefit from streamlined start-up formalities, requiring no share capital, no legal statutes and no publication of an announcement in a JAL.

The process of setting up a business must be preceded by a period of reflection and analysis to determine the viability of your project. Two strategic choices need to be made: the choice of legal form and the location of the head office. Once these choices have been made, the entrepreneur can begin the process of setting up the company.

Implementing a marketing strategy

A marketing strategy is essential to promote your business and achieve your objectives. Define your positioning, your target and your communication channels. Create a marketing plan that includes concrete actions to achieve your objectives. This may include creating a website, setting up a social networking presence, creating content and online advertising. A well thought-out marketing strategy will help you stand out from the crowd and attract your first customers.

Understanding the principles of financial management

Financial management is essential to the success of your business. Understand the basic principles of financial management, such as creating a budget, managing cash flow and making financial decisions. Create a business plan that includes financial forecasts and clear objectives. This will help you make informed decisions and achieve your financial goals. Good financial management is the key to ensuring your company's sustainability and growth.

Written by our expert Editorial staff
october 7, 2024
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Frequently asked questions

Do you want to work alone or with a partner?
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Even if you want to go it alone, it's important to be surrounded by experts. Choose a bank that can offer you appropriate banking solutions. With the help of a chartered accountant, you can calmly draw up the documents for your business plan.
What are the different types of company?
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There are several types of company: The sole proprietorship, with its variation, the micro-enterprise; Single-person companies: SASU, EURL; multi-person companies: SARL, SAS, SNC, SA, etc.
What should you do before launching your business?
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Before setting up a new business, entrepreneurs need to take time to consider the viability of their project. They draw up a business plan and a financing plan. The choice of legal status is made at an early stage, as it determines the company's tax and social security status.