Auto-entrepreneur overview
Auto Entrepreneur = Micro Entrepreneur
Just to clarify... You might have heard about auto entrepreneur and micro entrepreneur? Well it is the same thing! This scheme was launched as Auto Entrepreneur in 2009 and was renamed Micro Entrepreneur in 2016.
Micro Entrepreneur Overview - Get the full picture in 2 hours!
If you are new to France and want to get an overview of the Micro Entrepreneur regime, take my Micro Entrepreneur Overview course. It will give you a clear understanding of who this regime is for, how it works, as well as how much taxes you will pay. This mini course only costs 47€. It's objective is simple - helping you decide within a couple of hours if the micro entrepreneurs works for you. No fluff. And it is packed with clear explanations in plain English.
Micro Entrepreneur Turnover
Micro Entrepreneur turnover thresholds for 2023 to 2025 - maximum turnover of 77,700€ for services and 188,700€ for trade, buy-to-resell. Be careful however as VAT will have to be applied above 36,800€ for services and above 94,300€ for trade. This will mean requesting a VAT number from Impots.
Good news: you can go above the above maximum turnover threshold for 2 consecutive years, before having to come out of the Micro Entrepreneur (after your 1st calendar year where you do have to stay below). Let's take an example - Gemma works as a coach, i.e. profession liberale and registers her micro entrepreneur in July 2024. She makes 30,000€ of turnover in 2024, then 80,000€ in 2025 and 110,000€ in 2026. Legally, she will only have to leave the micro entrepreneur on 1st January 2027. At which point, she is likely to go for a French incorporated business, such as SASU.
Social charges from July 2024
Social charges are based on a fixed percentage of the auto-entrepreneur’s turnover - 23.1% for services (consultants, programming, teaching, sport instructors), 21.2% for manual & craft activities (builder, tiler, beautician, hairdresser) and 12.3% for trade (gites, ecommerce, shops) . Expenses cannot be claimed for, but have to be recorded.
Income tax can be paid up-front, by paying an extra fixed percentage of your turnover. This option is called impôt libératoire or versement libératoire (2.2% for profession liberale, 1.7% for artisans and 1% for trade). This is useful for someone under a business visa or carte de sejour, to show that they are up-to-date with all their French taxes, when they get to renew their business visa one year later.
Download my Micro Entrepreneur Factsheet to get a recap of these tax and thresholds.
Social charges exoneration - ACRE
I'm afraid that ACRE is limited to people registered with the unemployment agency France Travail (former Pole Emploi), benefiting from the minimum revenu of reinsertion RSA or being under 30 years old. ACRE is not automatic and has to be requested on registering your business or within 45 days of your business regsitration. This exoneration means a reduction of 50% on the normal social charges rate for one year: 11.55% for profession liberale, 10.6% for manual activities and 6.15% for trade.
Tip: If you have a French work contract, make sure you don't resign too quickly to create your micro entrepreneur, as you could get some extra help and benefits. End your contract by mutual agreement "rupture conventionnelle". Book a Power Hour to recap the process, and potential benefits. You can also remain an employee and create a micro entrepreneur, provided your visa or work contract allows it.
Micro Entrepreneur Liability
The auto entrepreneur / micro entrepreneur, is a sole trader or one-person business, registered under the entrepreneur’s name. As such, there is no distinction between the owner and the business, meaning the entrepreneur is liable for the debts generated by the business. Your main property called "résidence principale" is automatically protected.
Micro Entrepreneur Expenses
As an auto entrepreneur / micro entrepreneur you cannot claim any expenses the business may incur. You can pay for your expenses with your business bank account,but cannot deduct them from your turnover when you complete your turnover declarations to URSSAF. It's not so bad, as an average level of expenses was taken into account by URSSAF when they intially set up the social charges contribution rates (but you cannot this see). Full details explained in the Micro Entrepreneur Overview
Micro Entrepreneur Overview
You want to know more about the Auto Entrepreneur also called Micro Entrepreneur? Buy my Micro Entrepreneur Overview. Within a couple of hours, you will become and expert and will be able to decide whether the Micro Entrepreneur is a good fit for your project.