SASU: advantages and disadvantages

The advantages of a SASU

The SASU has a number of advantages. That's why this legal form is the most popular with entrepreneurs. These include :

• great operating flexibility,
• liability limited to capital contributions,
• choice of tax regime,
• a protective social regime for managers,
• the choice of dividend tax regime.

In addition to these advantages, there are a number of exemptions that make this status particularly attractive:

• no management report under 4 million euros balance sheet, 8 million euros net sales, and 50 employees,
• the management report is not filed with the clerk's office,
• no approval of the parent company financial statements,
• no registration of the clerk's receipt for the annual filing of accounts.

Let's take a closer look at each of these five advantages.

1. The flexibility of SASU operations

The Articles of Association of a SASU are drawn up by the company'ssole shareholder. The sole shareholder is therefore free to decide how the company should be organized.

However, there are limits to this freedom. This is particularly the case when the law requires the appointment of a statutory auditor (see the disadvantages of SASU).

2. Limiting liability to contributions

Contributions correspond to the money, assets or skills you "bring" to the company when it is created.

💡 The limitation of liability to contributions means that a creditor cannot, in principle, ask you to reimburse them for a sum that is greater than theirs.

As a result, your personal assets are separate from your business assets. It is said to be protected.

Except that this limitation of liability rarely stands up in practice, especially when it comes to loans granted by credit institutions. Indeed, the latter generally include a risk-limitation mechanism in the loan contract, known as a "security".

This security generally takes the form of a mortgage on one or more of your immovable assets. Your personal assets will be directly affected in the event of default. It then becomes collateral.

3. Corporate or income taxation

This choice of taxation is an interesting advantage of this legal status, however, the choice of income taxation is only valid for the first five financial years. As this option is not renewable, the classic taxation system for SASU companies is corporate income tax.

4. What social protection is available to the manager of a SASU?

In a SASU, the chairman enjoys the status of assimilated employee. This means that he or she is not affiliated to the social security scheme for self-employed workers, but to the general scheme.

The amount of social security contributions he must pay is calculated on his gross remuneration. However, unemployment insurance contributions are independent of these contributions.

⚠️ In the event of bankruptcy, the president of a SASU who has not made separate contributions has no protection against unemployment.

5. Taxation of SASU dividends
The sole shareholder of a SASU, as in a SAS, may pay dividends to himself out of the company's profits. They can choose between two types of taxation:

• The single-rate withholding tax (PFU),
• the progressive income tax scale.

The prélèvement forfaitaire unique corresponds to the famous "flat tax". This tax amounts to 30% of the value of dividends (12.8% income tax and 17.2% social security contributions).

The progressive income tax scale corresponds to the tax rate applied to you according to the household income bracket in which you fall, taking into account the family quotient. Nor does it allow you to save on social security contributions.

The disadvantages of a SASU

Like all legal systems, the SASU has a number of disadvantages:

• the complexity of drafting bylaws,
• high payroll taxes,
• Impossibility of opting for the micro-enterprise regime,
• sometimes mandatory appointment of an auditor.

1. Drafting the articles of association of a SASU

As mentioned above, the sole shareholder of a SASU is free to set out the company's operating rules in the Articles of Association. However, poorly drafted articles can lead to management difficulties.

From the amount of contributions to the keeping of a register of decisions, right through to the valuation of each contribution made in kind, many mandatory details may be imprecise, or even omitted.

2. High social charges for SASU

Social charges are twofold for the manager of a SASU. Not only do they not benefit from unemployment insurance, for which they have to make separate contributions, but they also have to pay all the social security contributions for their employees, without benefiting from any deductions.

Employee social charges are calculated on :

• salary,
• compensation,
• family benefits,
• benefits in kind.

3. SASU does not qualify for the micro-enterprise scheme

A major problem for self-employed workers is that they cannot benefit from the micro-business regime. A SASU is not eligible for either the micro-tax or micro-social schemes.

4. Appointing a statutory auditor in a SASU

A statutory auditor must be appointed in the following cases:

• a balance sheet in excess of 1 million euros,
• net sales in excess of 2 million euros,
• more than 20 employees,
• the SASU exercises control over other companies.

🔎 The role of the statutory auditor is to ensure that the financial statements are true and fair, and that they comply with current regulations. He then issues opinions and recommendations to the company's management.