The differences between micro-business and SASU
What is a micro-business?
A micro-enterprise or auto-entreprise is characterized by its simplified microsocial regime. The micro-entrepreneur is affiliated to the general Social Security system and benefits from a simplified tax system. All sales declarations are made via the URSSAF website or application, on a monthly or quarterly basis. They can opt to pay income tax at source.
Setting up a micro-business takes just a few minutes. There's no need to hire a chartered accountant. Keeping a register of expenses and receipts is sufficient. There's no need to create a monthly payslip. Other advantages include VAT exemption based on certain sales thresholds.
What is a SASU?
The Société par actions simplifiée unipersonnelle (SASU) is a legal form similar to the SAS, but with a singleshareholder. It shares this particularity with the EURL, the Entreprise unipersonnelle à responsabilité limitée. With SASU, entrepreneurs can carry on any business, with certain exceptions such as insurance, banking and tobacco retailing.
To change from a micro-company to a SASU, you need todraw up a set of articles of association. These define how the company will operate. To ensure that your articles of association meet all legal requirements, we recommend that you consult a specialist legal advisor. A minimum share capital of one euro is required.
Why convert from microenterprise to SASU?
Switching from a micro-business to a SASU may be an administrative necessity linked to your sales figures. Auto-entrepreneurs are subject to certain sales thresholds, depending on their activities:
- 77,700 euros (excl. VAT) for services and liberal professions
- 188,700 excluding VAT for sales and hosting services
The auto entrepreneur status allows you to mix several types of activity. Total sales must not exceed the threshold of 188,700 euros excluding VAT. If you exceed these limits, you may opt to switch from auto entreprise to SASU.
Switching from an auto-entreprise to a SASU is an interesting strategy when you want to hire one or more employees to develop your business, or even acquire a business. Switching from a microenterprise to a SASU gives you greater flexibility to develop your business.
When should you switch from a micro-business to a SASU?
Switching from auto entreprise to SASU in anticipation of exceeding sales thresholds
Opting for the transformation of a micro-business into a SASU can be made as early as the second year in which the sales thresholds for a micro-business are exceeded. Legislation requires micro-entrepreneurs to change status when they exceed these thresholds for two consecutive years. There is an important distinction to be made concerning these thresholds:
- Entrepreneurs do not lose their micro-tax status if they exceed the sales thresholds in the first year.
- Entrepreneurs lose their microsocial regime if they exceed the sales thresholds in the first year.
Auto-entrepreneurs planning a major change in their business activity can anticipate that their sales thresholds will be exceeded by taking the decision to incorporate the new company and meet their future accounting obligations, in particular by setting up a share capital.
Go from micro-entrepreneur to SASU to support your development projects
Switching from a micro-business to a SASU is an excellent solution to support your development strategy. It's simpler to acquire a "fonds de commerce" (goodwill) to have access to commercial premises. To grow your business, you may need to take out bank loans. Borrowing money is simpler when you approach your bank advisor as a shareholder in your company if you need to borrow large sums.
The SASU model is reassuring for investors. The auto-entrepreneur's personal assets are not separated from his or her business activity. The clear distinction between a legal entity and a natural person is important when dealing with investors wishing to commit to the development of your business.
Choosing to set up a SASU to protect your personal assets
If you want to protect your personal assets, it's advisable to switch from microenterprise to SASU. SASU offers the opportunity to separate your personal assets from your private assets. This gives you protection against seizure of your assets in the event of financial problems. However, it is essential to carry out this transformation before any financial difficulties arise in the running of your micro-business.
What are the advantages of switching from micro-entrepreneur status to SASU?
There are several advantages to switching from auto-entrepreneur status to SASU. It makes it easier to raise the funds you need to develop your business. With SASU, you have a share capital that allows investors to contribute cash to your development project.
In the context of a commercial activity, banks are more reassured when it comes to lending money to legal entities. Financial guarantees are more relevant. The auto entrepreneur status does not separate personal and business assets.
The social status of a SASU is more attractive when the business is expanding. The Chairman has the status of an assimilated employee. He or she benefits from the general Social Security system. This is a real advantage over the Social Regime for the Self-Employed (Régime Social des Indépendants - SSI), which has much higher social security contributions. With SASU, the entrepreneur benefits from more attractive health reimbursements and more extensive social protection.
When switching from auto-entrepreneur to SASU status, additional costs are incurred in running the business:
- social security contributions related to the remuneration of the chairman as an employee ;
- fees for accounting and legal obligations.
To switch from micro-business to SASU status, you need to take into account the costs associated with the transformation. The first step involves a number of administrative formalities:
- drafting articles of association ;
- publication of the articles of association in a legal gazette;
- filing the application with the Guichet unique des entreprises.
The second stage involves, if necessary, transferring the existing business to the SASU via a contribution or assignment. The value is converted into the share capital of the SASU. The appointment of a contribution auditor is essential.
The final step is to declare the cessation of micro-business activity to the Guichet unique. The deadline for doing so is 30 days.
Switching from micro-enterprise to SASU is a necessity when the auto-entrepreneur's sales are booming to exceed the limits set by the government. SASU offers greater flexibility for developing a larger-scale business strategy.
Written by our editorial expert
May 30, 2024
