Solo in France: EURL or MICRO-ENTERPRISE, which fits you?

If you wish to work for yourself in France, several options are available, and two statuses are particularly common: the micro-enterprise and the EURL (single-member limited liability company) subject to corporate income tax (IS).

These two structures allow you to manage a business alone, but their operation differs significantly.

The micro-enterprise prioritizes administrative simplicity and a flat-rate calculation of social security contributions. The EURL, on the other hand, is a fully-fledged company with its own legal personality and more comprehensive accounting.

This presentation compares these two options and concludes with two concrete and quantifiable examples to help you identify the structure best suited to your situation.

GENERAL PRESENTATION OF THE TWO STATUTES

Micro-enterprise (BNC): This is an extremely simplified sole proprietorship regime for self-employed professionals (consultants, trainers, translators, etc.). The revenue ceiling is €83,600 for the period 2026-2028. Social security contributions are calculated as a flat rate, and income tax is levied on revenue after a standard deduction. Accounting is limited to a revenue ledger, and formalities are minimal. However, this regime becomes disadvantageous when expenses are high.

EURL (Single-Member Limited Liability Company) subject to corporate income tax: This entity is a company with a single shareholder that creates assets separate from those of the entrepreneur. Profits are subject to corporate income tax. The manager contributes as a self-employed worker on the remuneration he pays himself. This status requires full accounting as well as procedures for company formation, legal monitoring, and, potentially, dissolution at the end of operations.

NOTE: For non-EU nationals, a residence permit authorizing self-employment is required.

COMPARISON OF SOCIAL SECURITY SCHEMES

In a micro-enterprise (BNC status), self-employed social security contributions are calculated directly on revenue received, at a rate of 25.8% starting in 2026. If you have no revenue, you pay nothing. The calculation is simple and predictable, but social protection (pension, sickness benefits) remains modest if revenue is low.

In an EURL subject to corporate income tax (IS), the sole managing partner also falls under the self-employed scheme. his contributions are based on the remuneration he chooses to pay himself, at a rate of approximately 40% to 45% of this net income. Minimum contributions are still due even without remuneration. A portion of dividends is also subject to contributions above a certain threshold. Social protection can be better, especially since the manager decides to add optional tax-deductible contributions, but the cost is obviously higher.

COMPARISON OF TAX REGIMES

Under the BNC (micro-enterprise) regime, there is no corporate tax. Turnover, after a standard 34% allowance, is added to other household income and taxed according to the progressive income tax scale. It is not possible to deduct actual business expenses. Under certain income conditions, it is possible to opt for a flat-rate withholding tax of 2.2% of turnover.

VAT exemption applies up to €37,500 of turnover.

Under the EURL (sole proprietorship) regime, which is subject to corporate tax, the business pays tax on its profits (15% up to €42,500, then 25% above that), after deducting all its actual expenses. The owner is taxed only on his salary. Dividends are subject to a flat-rate withholding tax of 31.4%. This flexibility allows for optimization of the distribution between salary and dividends, with the help of a chartered accountant.

This company can also benefit from VAT exemption up to €37,500 in turnover.

COMPARATIVE TABLE OF TAX AND SOCIAL SECURITY CONSEQUENCES ACCORDING TO THE TWO STATUSES

EURL with Corporate Tax (IS) Option vs Micro-enterprise

Comparative financial study — impact of the number of tax household « shares » (parts fiscales)

Assumptions and calculation method

2026 figures, service provider under the BNC regime (non-commercial profits). Micro-enterprise: social contributions = 25.6% of collected revenue; flat-rate allowance for income tax purposes = 34% of revenue. EURL with IS option: self-employed manager’s (TNS) social contributions ≈ 45% of net remuneration; income tax on the manager’s remuneration after a 10% deduction (professional expenses allowance). In both hypotheses, the manager’s remuneration plus related social contributions absorb the entire profit before social contributions: corporate tax (IS) owed by the company is therefore nil, and no dividends are distributed.

2026 progressive income tax scale (per share): 0% up to €11,600 — 11% from €11,600 to €29,579 — 30% from €29,579 to €84,577.

These figures are simplified, educational estimates and are not a substitute for a personalised simulation prepared by a chartered accountant (expert-comptable).

Hypothesis 1 — Revenue €30,000 / expenses €5,000 / profit before social contributions €25,000

Variant A — Single entrepreneur, 1 tax share

Variant B — Married or civil-partnered (PACS) couple, non-earning spouse, 2 tax shares

Since taxable income is divided by the number of shares before the scale is applied, both incomes remain below the tax threshold (€11,600 per share): income tax is nil under both structures.

Hypothesis 2 — Revenue €80,000 / expenses €5,000 / profit before social contributions €75,000

Variant A — Single entrepreneur, 1 tax share

Variant B — Married or civil-partnered (PACS) couple, non-earning spouse, 2 tax shares

Moving to 2 shares significantly reduces income tax (the « quotient familial » mechanism) and improves final net income under both structures, without changing the relative ranking between the micro-enterprise and the EURL.

Summary

For an identical family situation, the net income gap between the micro-enterprise and the EURL with IS option remains moderate in both hypotheses. The household’s tax situation (number of shares, spouse’s other income) strongly affects the final tax amount, but does not change the relative ranking of the two structures in these examples; it should nonetheless be verified on a case-by-case basis before any decision is made.

KEY TAKEAWAYS

In terms of figures, the difference in net income between a micro-enterprise and a single-member limited liability company (EURL) subject to corporate income tax (IS) remains moderate in both scenarios studied: the choice should therefore not be based solely on this criterion. The micro-enterprise remains unbeatable for starting a business in France: (virtually no formalities, contributions calculated automatically, no complex accounting to maintain). The EURL subject to corporate income tax becomes relevant as soon as the business grows, exceeds (or approaches) the thresholds of the micro-enterprise regime, or when the entrepreneur wishes to reinvest part of the profit in their company at a reduced rate (15%) rather than receiving it all as personal income, limit their social security contributions by adjusting their remuneration, or project a more institutional image to their clients.

It is worth noting, however, that it is far preferable to choose your legal structure when you first set up your business. Indeed, changing your legal status after several years of operation becomes a more complex and costly process than at the time of creation, primarily due to the transfer of the business assets. It should also be noted that there are several other types of companies which, although not presented here, may be suitable in certain cases.

Our chartered accountants are of course willing to study your particular case and help you choose the structure best suited to your business.