What legal form should an e-commerce business take?

Do you need to set up a company to sell online?

E-commerce, or online commerce, refers to any commercial activity carried out through distance selling from a computer, smartphone, tablet, etc. The company therefore offers its goods online, via its website. The company offers its goods online, via its website. To carry out a buy-and-sell activity, you need to have the appropriate professional status.

You need to declare your activity, and this involves specific administrative procedures. There are several advantages to setting up an e-commerce store. It reduces the fixed costs of your future business, because you don't need to rent or buy commercial premises to welcome customers. What's more, customers can access the products on sale 24 hours a day, 7 days a week. An e-commerce store can therefore help boost your business while keeping operating costs under control.

E-commerce: the different types of status and legal forms available

Launching an e-commerce business also involves deciding on the type of legal structure to create. Whether you opt for a sole proprietorship (EI), a limited liability company (SARL) or a simplified joint stock company (SAS), you need to choose the best legal status, and the choice depends on a number of criteria.

To make the right choice, the e-commerce professional must be able to answer these questions:

• Do you want to start your business alone or with partners?
• Are specific or minimum investments essential to get your business off the ground?
• Is the company's projected future sales substantial?

The choice between sole proprietorship and partnership depends on the answer to the first question. The answer to the second question may foreshadow the arrival of new partners. Finally, large-scale projects are better suited to certain types of status.

Micro-entreprise: the ideal legal status for e-businesses

The auto-entrepreneur status allows you to get started quickly, with simple set-up and accounting formalities. But is it the best legal status for an e-commerce business? Micro-entrepreneurs have several advantages:

• simplified, free set-up formalities,
• simplified management, as there are no accounting obligations (a dedicated bank account is recommended),
• reduced tax burden.

A micro-entrepreneur pays no charges if he or she has no income. With all these advantages, you can start your e-commerce store project with little financial risk. However, your annual sales are capped at 188,700 euros excluding tax. What's more, you can't deduct expenses to limit your tax bill.

However, with an online store, these professional costs are numerous (product purchases, website management, advertising...). Micro-enterprise is therefore the ideal way to get started. However, when your company is experiencing strong growth, it's not always the case that the flat-rate deductions available under the micro-business system will be to your advantage. It may also be more advantageous to switch to a company status.

EI, EURL or SASU: which is the best legal status for your e-commerce business?

Asole proprietorship is the right legal form if you want to launch your business on your own. It simplifies the formalities involved in setting up and running your business. This legal form also gives you total management power. The sole proprietor is the sole decision-maker on the company's operations, as well as its commercial and strategic orientations.

You can opt for a sole proprietorship, but under the micro regime. You can also opt for the SASU or EURL, which are well suited to online sales or dropshipping activities. The EI can offer the e-merchant a number of advantages:

• not be limited by sales ceilings,
• deduct all expenses incurred in the course of business to reduce the tax base,
• greater credibility with business and/or financial partners.

You can go one step further by opting for the EURL (entreprise unipersonnelle à responsabilité limitée) or the SASU (société par actions simplifiée unipersonnelle). With a legal personality in its own right and no sales limits, these two legal forms are ideal for an online sales project.

As manager and partner, the e-merchant benefits from the status of a self-employed worker with an EURL. This means they are covered by the social security system for the self-employed. This simplifies the management of remuneration and reduces social charges. As a result, you can optimize your taxes and those of your company.

With a SASU (simplified joint stock company), the e-merchant is president of the company and has the status of an assimilated employee. They are covered by the general Social Security system, but their remuneration is higher. Whether you opt for EURL or SASU, you benefit from a legal status that's ideal for the development of your online store. All professional expenses related to your business are deducted. What's more, the formalities involved in setting up your business are straightforward and inexpensive.

Please note: The individual limited liability company (EIRL) no longer exists. This is justified by the creation of a new legal status, the EI.

SARL and SAS: what legal status for large e-commerce sites?

The SARL (limited liability company) and the SAS (simplified joint stock company) have the same advantages as the unipersonnel limited liability company and the unipersonnel simplified joint stock company. What's more, these two types of company offer the possibility of multi-partner entrepreneurship. You can collaborate with several partners in your business, and benefit from a legal status suited to a number of essential operations.

For example, the entrepreneur can solicit investors to take a stake in his business via shares. An SAS or SARL is much more credible in the eyes of financial partners. These forms are ideal for large-scale online stores. Choose an SAS or SARL at the very start of your project, or develop your business later as it grows.

Is it possible to start with a modest status before switching to a corporate status? Or should you adopt a corporate legal status from the outset? To answer these questions, you need to take into account your objectives and the particularities of your project (type of products, field of activity, expected salary, social security contributions...).