When you set up your own business, it is not easy to choose one’s legal status. Today you are talking about EURL, otherwise known as a single-person limited liability company. What does the creation of this type of company mean for the manager? All the answers to your questions about EURL are here.
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- Creating your business and company
- What is an EURL?
- EURL: all benefits
- Hiring, recruiting in EURL
- and taxation
- EURL limits
- A square legal status
Plan de l'article
Creating your business and company
Whether it’s for an independence of life or because you want to carry out a project that is really important to you, creating a business is often the way to reach its ends.
As a manager of a company/company, you have a responsibility, the first of which is to properly choose its legal status. Indeed, in France, any company must possess a legal status in order to be in accordance with the legislation.
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Whatever activity you plan to launch with your company, you have the choice of a status: does EURL correspond to you as a single-person company with limited liability? Discover the benefits but also the limits of EURL.
What is an EURL?
EURL is a type of legal status that can be chosen when you decide to start a business. An EURL is defined by regulations that depend on the status of LLC (Limited Liability Company). An EURL is a LLC, but in status which means that only one person can constitute an EURL, unlike LLC.
The EURL partner is a “sole partner”. The nuance is important, as this partner becomes partially responsible for any debts of the EURL. Its liability is limited, as indicated in the title and remains determined on the basis of the amount of the contribution made by the sole partner to the social debts.
EURL: all advantages
There are many advantages to creating an EURL. Since the partner is unique, he is freed from certain responsibilities. That status somehow protects him.
The status of EURL makes it possible to clearly distinguish between personal and corporate assets. This company status also allows you to engage in a commercial, artisanal or liberal , which is an advantage for all three sectors.
Furthermore, since the 2016 Sapin 2 law, the EURL can take over the micro-enterprise scheme if the company’s manager is at the same time the sole partner of EURL. It should be noted that the sole partner of an EURL is under no obligation to become the manager of his company.
Hire, recruit in EURL
With EURL, it is possible to recruit a manager and hire several employees. This is extremely convenient, especially if you do not want your EURL’s manager and sole partner to be one and the same person.
The sole partner of the EURL has the power to make decisions concerning any economic and strategic direction for society. He must be able to communicate clearly with the manager who will have has been designated, in order to ensure optimal management of the enterprise, in the interests of all.
EURL and taxation
When we start the creation of a single-person company with limited liability, one must also learn about the taxation on which EURL depends. And good news, with EURL, you have the choice between corporate tax (IS) and income tax (IR).
Corporate tax considerably simplifies the basis for calculating social security contributions, a significant advantage.
SARL and EURL : If you still hesitate between SARL and EURL, be aware that it is easier to manage an EURL, especially because of the less cumbersome regulations. A manager of SARL must write management reports or minutes, while a manager of EURL can quite pass from this kind of binding operation.
Another advantage of the EURL is that its sole partner, if he is also the manager of the EURL and has a 5-year seniority, can benefit from theexemption from surplus transfers of securities if the situation arises (retirement, for example). Certain conditions must be met for this type of operation, particularly with commercial and social shares.
In many sole proprietorships, the manager has to sell all of his shares; this is not the case with EURL: only one share is sufficient if he wishes to convert his EURL into LLC.
The limits of the EURL
As a legal status, the single-personal limited liability company also has its drawbacks. For example, the mere fact that liability limited to contributions is claire is a factor that must really be taken into account before the creation of a company in EURL.
should also be aware that if you want to create an EURL, your statuses will have to be perfectly up-to-date. While this status offers many advantages, the creation of a business is not to be taken lightly. All formalities and procedures are relatively facilitated, but be sure to stay in good standing You , including an up-to-date legal secretariat.
A square legal status
One of the most well-known limits of the EURL remains that this statute prohibits the creation of an EURL related to insurance, financing, laboratories or tobacco offices.
Furthermore, the coverage of the employee scheme is advantageous, but it should be noted that if the manager and the sole partner of the EURL are one and the same no one, then he will not be able to benefit from that coverage. Similarly, if the sole partner is a natural person in the enterprise, he cannot have an associated debtor current account , which remains logical.
Choose the status of the EURL knowingly: before the creation of any company, weigh the pros and cons of each status. Depending on your projects and ambitions, a legal status as a company can better match your company model. It can be useful to get advice with setting up your business , whether it is in terms of management, taxation, choice of status, drafting of statutes or even disopening…