Moving from auto-entrepreneur to EIRL business in France?
arstewart
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Currently I have an auto-entrepreneur business in France, that I will go over my threshold this year. (80,000 euros to 120,000 euros estimated total) I have a few questions about the process.
- Structure - reading around on the forum, it seems you prefer the entreprise unipersonnelle à responsabilité limitée (EURL) to the entrepreneur individuel à responsabilité limitée (EIRL). My particular situation is: I’m a sole freelancer (video producer/editor), I work under my own name, I won’t need partners in the future, I don’t need employees (though I do very occasionally hire other freelancers to do work for me), and my monthly expenses are fairly low (I work from home). It was my understanding that an EURL needed someone to do the accounts, whereas with EIRL you could have simplified accounting similar to auto-entrepreneur (but publishing accounts every year so a bit different, but Quickbooks should generate that for me), and also being taxed as my personal income would work out better for me (according to the online simulation I did). I suppose my question is: any thoughts on going this direction (having EIRL) or things I should watch out for, or other considerations I should look at? I know société à responsabilité limitée (SARL) is too big for my needs, but when I looked at EURL vs EIRL, EIRL seemed to fit my particular situation much better.
- For taxe sur la valeur ajoutée (TVA) - currently I’m waiting on a couple invoices that will push me over the auto-entrepreneur threshold (according to the Centre de Formalités des Entreprises (CFE), they will inform me I’m over my threshold and then I start the process of moving to the new structure), but they said I would need to start charging TVA immediately (after my auto-entrepreneur threshold is reached) on my next invoices. Could I go ahead (knowing that I for sure will be over the limit in a month’s time) and register for TVA to get a number so that I can just start invoicing with TVA and declaring TVA as soon as I go over the limit? (some of my clients take a month or two to process invoices, so you see, I don’t want to wait another month to register TVA, wait on that a few weeks, and then invoice them…) Will that mess anything up since I’ll technically not be over the limit yet, or does the TVA office not really care about that? Let me know if my question doesn’t make sense!