How to choose the legal form suited to your project
When you undertake the creation of a business, one of the key decisions to make is to choose the legal form that best suits your project. The legal form determines the legal structure of your company and impacts various aspects, such as the responsibility of managers, tax and social obligations, as well as the operating methods. Here is an overview of the main legal forms available:
1. Individual Enterprise (EI):
- This is the simplest and most common form.
- You are responsible for the company’s debts on your personal assets.
- You benefit from autonomous management and simplified taxation.
2. Single-member company with limited liability (EURL)
- It is a sole proprietorship with limited liability.
- Your liability is limited to the amount of your capital contributions.
- You can benefit from the corporate tax (IS) regime for the taxation of profits.
3. Simplified Joint Stock Company (SAS):
- It is a flexible legal form, suitable for small and large businesses.
- The liability of shareholders is limited to the amount of their contributions.
- You benefit from great freedom in the organization and operation of the company.
4. Limited Liability Company (SARL):
- This is a common legal form for small and medium-sized businesses.
- The partners have liability limited to the amount of their contributions.
- You can choose between income tax (IR) or corporate tax (IS) for the taxation of profits.
5. Limited Company (SA):
- This is a legal form suitable for large companies.
- Shareholders have liability limited to the amount of their shares.
- The SA is subject to stricter governance requirements.
It is important to consider several factors when choosing the legal form, such as the nature of your business, the size of your business, your long-term goals and growth prospects. Do not hesitate to consult a legal professional or an accountant to obtain personalized advice based on your entrepreneurial project.
