Becoming a micro-entrepreneur: the advantages and disadvantages of this status

How to become a micro-entrepreneur in just a few clicks?

Would you like to know how to become a micro-entrepreneur? Becoming a micro-entrepreneur is easy. All you have to do is visit the Guichet unique website and fill in the dedicated form. Auto-entrepreneurs benefit from a very attractive micro social security scheme and a micro tax scheme. For example, micro-entrepreneurs are associated with the Social Security system and are subject to tax on their reference tax income. They can opt to pay income tax in full discharge. Calculation of social security contributions is simplified.

The micro-enterprise scheme is subject to certain sales thresholds:

• 188,700 euros excl. tax in sales of goods, sales for consumption on the premises and provision of accommodation
• 77,700 euros (excl. VAT) in sales for the provision of services

As a micro-entrepreneur, your accounting is limited to keeping a register of receipts and purchases. You are not required to draw up an annual balance sheet, nor to have share capital. You can open a separate bank account to keep your accounts up to date, but this does not have to be a professional solution. Finally, micro-entrepreneurs are exempt from basic VAT, provided they meet certain sales thresholds:

• 39,100 euros over a calendar year for services or self-employed activities
• 101,000 euros over a calendar year for sales or merchandise activities

In the event of overruns, the micro-entrepreneur is obliged to invoice VAT effectively. Explore our complete guide to the micro-entrepreneur scheme

Domiciliation for auto-entrepreneurs: a mandatory step

When declaring their activity, micro-entrepreneurs must indicate their registered address so that they can be registered with the Registre du Commerce et des Sociétés (RCS), or with the Répertoire des Métiers for craft businesses. Without a registered address, the auto-entrepreneur cannot benefit from official registration or receive a SIREN number.

Thedomiciliation address is essential, as it enables the auto-entrepreneur to receive administrative documents: URSSAF, INSEE, Social Security, etc. This address is mentioned on invoices and quotations issued to customers. It is also required by service providers and suppliers to send commercial documents to the auto-entrepreneur.

Where can you domicile your micro-business?

As a micro-entrepreneur, you can domicile your business in your own home. However, there are other solutions:

• commercial premises ;
• third-party premises;
• a business incubator ;
• a domiciliation company.

An auto-entrepreneur can have a registered address different from their place of work.

What you need to know about domiciling your micro-business at home

As a micro-entrepreneur, you have the option of domiciling your business at your personal personal address. If you are a tenant, you must inform your landlord that you are starting a micro-enterprise at your home. Before sending a letter to the landlord, check that your lease does not contain any contractual provisions preventing you from carrying on your self-employed activity within the premises.

The advantages of choosing a home address for your auto-entrepreneurial activity

Selecting your home to domicile your business is a cost-effective solution. Correspondence is simplified because you receive all your mail directly in your mailbox. Despite this choice, you are still subject to the cotisation foncière des entreprises (CFE).

The disadvantages of domiciling your auto-entrepreneur business at home

If you choose to domicile your auto-business in your own home, you disclose your personal address to all your customers, service providers and government authorities. In fact, your registered office appears on all legal and commercial documents. Remember that your own name appears.

Choosing a domiciliation company for your micro-business

What is a domiciliation company?

A domiciliation company provides an administrative address for self-employed businesses to validate their registration with the RCS or RM for craftsmen. This type of service is also available for EURL, SARL, SASU, SAS, SCI, etc. Adomiciliation company, like SeDomicilier, offers subscription packages starting at around ten euros a month. With prefectoral approval, a domiciliation company offers a wide range of services, tailored to the needs of each micro-entrepreneur.

Domiciliation services for micro-businesses

The services offered by a domiciliation company for a micro-business can vary:

• mail management: reception, scanning, forwarding ;

• telephone switchboard and physical reception ;

• coworking spaces, meeting rooms, etc.

The advantages of choosing a business address for a micro-business

There are a number of advantages to choosing a business address when you're a micro-entrepreneur.

Give your micro-business a prestigious address
A company's head office is important to its customers. A micro-business can use domiciliation services to make its head office stand out. Having a registered office in a prestigious district of Paris or another major city is excellent publicity. The address of your head office is the showcase of your micro-entrepreneurial activity. Customers pay a great deal of attention to the location of a company's head office, especially when they consult business listings on Google.

Influencing CFE payments
Payment of the CFE is based on your actual domicile. Even if you work from home, you are required to declare the surface area occupied for your micro-entrepreneur activity. Visit CFE tax is calculated on the basis of sales for year n-1, and must be paid before December 15 of the current year.

Using the services of a domiciliation company can affect the amount of your CFE. The calculation of this tax is based on a minimum contribution, if the micro-business is domiciled with a company specialized in commercial domiciliation.

Comprehensive services
We've already discussed the full range of services offered by a commercial domiciliation company. Depending on your line of business, it may be worthwhile subscribing to a range of time-saving solutions. Even so, domiciliation can represent a significant budget in the running of your auto-business. It can be a major expense at the start of your business.

Domiciliation for your micro-business is an excellent way to enhance your brand image. What's more, you benefit from tailor-made services to lighten your day-to-day administrative burden.