Auto-entrepreneur or an association for yoga teacher?
My wife is running a Yoga / Shiatsu / Tai Chi Centre and has applied for auto-entreprenuer status under Professions Liberale. The business premises are rented. She is being advised by a french business friend, that she should run the Centre as an Association, with the Association responsible for overheads such as rent, insurance, etc. All income would go to the Association with my wife charging a fee and expenses for her services. These fees would balance the accounts at the year end. This would mean her turnover would be less and hence less tax.
Is this a legal situation in France, it does appear that a lot of French people run associations. Can an association can claim back the TVA on expenditure. For example the TVA on the monthly rent? Are there any other tax break advantages?