Uber, LeCab, Chauffeur-Privé, Heetch, Cinq-s... For several years now, VTC companies have been expanding rapidly on the web. The desire to create a VTC business is more than up to date. To do so, it's important to think carefully about the legal form to adopt.
Micro-business or corporation?
This question comes up regularly, and to answer it you need to know the differences between the two statuses. While auto-entreprise is the easiest choice, it's worth looking further afield to consider setting up a company, such as a SASU.
In this article, we highlight the advantages of SASU and the steps you need to take to transform your micro-business into a one-person company.
When it comes to setting up their business, VTC drivers often opt for the micro-enterprise status. It's true that its administrative simplicity makes this status both affordable and attractive.
A simple online declaration, and the company is created! In addition to these advantages, auto-entrepreneur status is also attractive from a tax point of view, and subsidies such as ACRE will enable you to benefit from significant reductions in charges.
However, by opting to set up a company, the main constraints of micro-business (to which we'll return below) will be far behind you. A company will enable your business to evolve more flexibly, without being held back by any sales ceiling. You'll also be able to team up with other VTC drivers to share profits and expenses.
There are several types of company to choose from: EURL, SAS and SASU are the most commonly used, although we recommend the latter.
As mentioned above, although the auto-entrepreneur status is quick and easy to set up, it does have a number of constraints that can hamper the growth of a VTC business.
The main disadvantage of a micro-business activity is the potential expansion of the structure.
With the sales ceiling set at €33,200(but perhaps not for much longer), you won't be able to generate very high profits. Nor will it be feasible to hire employees.
It is also impossible with a micro-business to make tax-free (HT) purchases for material needs or services relating to your professional activity, and it is also impossible to deduct professional expenses (car, gasoline etc.).
It's also important to note that VAT is not recoverable on transactions. This means that you won't be able to reclaim the 20% tax on your entire expenditure.
Finally, you have no choice but to be affiliated to the RSI, often decried by auto-entrepreneurs for its late payments and constant administrative worries. From the very first year of business, the bill can quickly mount up in social security contributions, even if you haven't generated any cash.
Your activity may also be considered disguised salaried work if the VTC has only one customer. You need to be very vigilant on this point.
All change of status formalities must be carried out with the CFE.
First of all, you'll need to declare the cessation of your business. There are two ways of doing this: directly online via the CFE website, or in person at your local Chamber of Commerce and Industry. Simply fill in a form and return it to the CFE.
Then it's time to choose your new legal form. EURL, EIRL, SAS, SASU... you're spoilt for choice. For reasons we'll explain below, SASU seems to be the best solution for a VTC.
This is followed by the drafting of your company's articles of association , to clearly define how your business will operate. This step must be carried out with great care, and we strongly recommend that you call on a professional (lawyer, chartered accountant or notary) to carry out this procedure.
You will then need to register your new company. This involves registering you in the Commercial Register and publishing the legal notice.
Finally comes your registration on the VTC register, which takes an estimated two months to process. This administrative step is mandatory for your VTC driver activity.
That's all there is to it! Your change of legal form is complete!
From micro-business to company
We mentioned above the wide choice of legal forms available to you. It's important to think carefully, taking into account important criteria such as tax, social and legal aspects.
SASU is the preferred legal form for VTC drivers.
Its organizational and managerial flexibility offers many advantages.
The main advantage of an SASU for a VTC is that you can set up your business on your own, while still being able to consider recruiting staff at a later date. By choosing the SASU, your limited liability will enable you to protect your personal assets. So, if you are unable to repay the debts arising from your company, your personal assets will be protected, and only the capital of your company will be involved.
The tax advantage is significant, since the VTC can subtract its costs from its sales and be taxed on its profits alone. They can also deduct VAT from their revenues. Also, unlike the auto-entreprise scheme, which allows annual sales to exceed €33,200, the SASU has no ceiling.
From a social point of view, the SASU allows its manager to be affiliated to the general salaried employee scheme, rather than the RSI like the auto-entreprise.
It's also worth noting that SASU makes it easier for your business to grow. New partners can be recruited to transform your business into a dynamic company in the eyes of potential investors.
Domiciliating your company is one of the most important steps to take. While it's possible to domicile your head office in your own home or in a rented office, opting for online domiciliation offers many advantages. This option offers considerable flexibility and speed for the manager. With a simple click, you can choose your domicile in complete security.
Here are the strengths of online direct debit:
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The attractive price, obviously much cheaper than renting an office.
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Separation of private and professional life: by registering your company, you can differentiate your home from your workspace on your administrative documents and on the Internet.
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Legitimacy and reliability! If you locate your company in a reputable area, your business will be viewed with more credibility in the eyes of your prospects.
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Tax advantages! The CFE is much lower when you use a commercial domiciliation company, especially for a Paris address(read our CFE guide to find out more).
Even if the micro-entreprise option offers unbeatable simplicity and speed of administration, this legal form is ultimately only suitable for start-up VTC activities. Sales ceilings, compulsory social security contributions (RSI) and non-recoverable VAT are just some of the drawbacks that hamper the development of your business.
By opting for the SASU form, you're choosing an assured administrative structure with great potential for growth, both in terms of profits and payroll. More and more VTC drivers are opting for the SASU form to develop their business, so don't hesitate any longer!
