When you want to start your business on the web, as a professional blogger or in any other field, one of the first questions that comes to mind is: “What status to choose? “ This question is legitimate, because choosing the right legal status is essential …
Indeed, if only to edit an invoice or make a quote for prospects, you will need to include a SIRET number, as we saw in the article where I present a tool for online billing.
In addition, choosing the right status for your business will have very significant tax, property, legal and financial implications. It is therefore essential not to be mistaken! However, as we will see, there is no rush …
I would like to clarify that this article has an informative purpose, and cannot replace the advice of an accountant or a chamber of commerce and industry who will be able to answer your particular case. In the rest of this post, I will present a little known status that is rarely put forward, so stay tuned.
Doing things in order
First, ask yourself whether you can start WITHOUT any particular legal status. The answer is yes ! Why incur costs to create the legal structure of your company when you are not yet earning money? If you make few sales, you only have a very low turnover, it is not a priority: you will be able to start asking yourself the question of the legal structure only when you start to earn several thousands euros of turnover!
I therefore advise you to start at home, with a simple furnished office, and you will always have time to see coming if your business really takes off!
How to declare your earnings on the internet?
According to tax authorities, if you earn only a few hundred or even a few tens of euros per month, for example through a blog or a YouTube channel, you can declare your income from the internet as if you were a non-professional blogger , a private individual earning some income from his leisure.
According to art. 92 of the general tax code (CGI), they must be declared as “non-professional non-commercial income” using form 2042C, annex to form 2042. You can thus declare up to € 27,000 excl. by this way !
You must, on your declaration on the internet, check the box “Non-professional non-commercial income” at the start of the declaration procedure to display form 2042C. If on the other hand you have opted for the status of auto-entrepreneur, do not forget to check the box ” auto entrepreneur “ in the INCOME section. You will then have to fill in boxes 5TA, 5TB, 5TE. Use the amounts shown on the tax certificate sent by Ursaff or the RSI as a guide.
How to escape the R.S.I?
When we talk about the wolf … the Social Scheme for the Independent (R.S.I) is a compulsory social protection scheme for traders, craftsmen, and liberal professions. The least we can say about him is … he is unanimous against him!
Because of its serious dysfunctions, its lack of transparency and an obvious lack of listening to its affiliates, this organization has a terrible reputation and arouses the anger of very many independents who scrap within the Association Save our companies.
The question you should ask yourself is this: as a professional blogger, earning income from the sale of services on the internet, is there a way for me to escape from R.S.I? It all depends on your status! If you are self-employed, no luck: you will not be able to cut it!
But if you haven’t already taken the plunge, there is fortunately an interesting alternative for Freelancers: Activity cooperative. It’s a little-known solution, and yet it has almost nothing but benefits.
The status of entrepreneur-employee in CAE
By joining a CAE, that is to say an activity cooperative, you will be able to choose the status Employee-Entrepreneur. But you can also choose other statuses such as cooperating or associated. The entrepreneur-employee is a mixed status which combines the security of the workforce with the benefits of entrepreneurship. In fact, you’re creating your job in a shared company, that’s the concept.
You will therefore contribute to Social Security – and not to the RSI – like any employee, provided you have at least 60 hours of work in the month. And so, you will have much better social protection than with the R.S.I in passing, whether in sick leave or unemployment protection, but also in terms of pension contributions. You will therefore contribute to unemployment and will be entitled to Pôle-Emploi benefits like any employee.
In an activity cooperative (CAE), you therefore receive a salary, like an employee, which is paid to you by the structure. Your salary varies according to the margin you make, and therefore the AC that enters the CAE thanks to you. You will also benefit from a permanent contract of employment.
This status is ideal for testing a project and for small activities. You can stay as long as you want within the EAC, there is no maximum duration to be there.
In an EAC, you are never alone with your project and the external environment: you benefit from constant support to improve your skills, and you will work in a network. Thus, you will be trained to develop your business plan and implement your business strategy. Entrepreneurship, management, we teach you all that within a CAE! Thus, the risks of failure and stopping of activity are limited to the maximum.
The cooperative will help you for example to manage your cash flow, and to make your forecast of C.A, on which will depend the salary that you will receive.
The great strength of CAE is that the various training actions allow the exchange of information, and good practices in network, there is a group emulation! For example, you will be able to respond to joint tenders with other entrepreneurs within the EAC. In 1998, I participated in training in a network of virtual companies in which we trained to hold a position within the company: secretary, accountant, salesperson, etc. It was bluff, the documents were fake, but it comes close to the concept of the EAC. The difference here is that everything is real!
By integrating a CAE, all administrative, tax and accounting procedures are taken care of by the structure, as with salary portage. But, if it is CAE which invoices the services of the Entrepreneur, it is he who is responsible for the commercial development of its activity.
With this status, you will combine the advantages of being self-employed without the disadvantages, in particular the freedom to work at your own pace, without fixed schedules, without hierarchy, with the security offered by salaried workers (the payment of a salary each social security).
How about a little listing of all the benefits of EAC?
- You benefit from a permanent contract (reassuring for banks and to obtain accommodation);
- You have a salary that falls every month, no stress!
- You can combine your income with unemployment benefits according to the volume of hours worked;
- You benefit from all the benefits of Social Security (sick leave, unemployment, etc.);
- You benefit from a SIRET number provided by the CAE;
- You can become a member of the CAE;
- You benefit from the mutual “house” (contribution deducted according to your C.A);
- You are trained and supported in your activity in thematic workshops;
- You build up an address book through networking;
- You have professional structure insurance;
- The CAE bears legal and fiscal risk;
- We are free to choose our schedules, set our prices and choose our customers.
- It is difficult to find the right cooperative, the one that suits you;
- Their services are not free: count between 7 and 12% on average of your turnover;
- You will not be able to benefit from aid for setting up a business (employee status required!);
- There is a right of inspection over the contracts signed by the Contractor (because of the legal risk);
- Depending on the structure, billing can take time;
- It is not possible to hire since you are an employee.
How to become an entrepreneur-employee in CAE?
If you are already in Self-employment, and you wish to change your status to join an activity cooperative, you will have to request your cancellation as a self-employed entrepreneur. Then, you will be asked to attend an information meeting and present your project to a guide.
To find a CAE near you, it’s here: http://www.cooperer.coop/
About the Author
This article is a guest post written by Cédric, from the blog Passion-Writing, a new blog in Web Writing on which he shares with you his new entrepreneurial adventure. Find it on: https://passion-redaction.blogspot.fr