You have a great idea, your decision is made: you are going to create your own business! Indeed, any business creation project begins with an idea, whether for a liberal profession, a commercial project or crafts.
Several types of company exist in France, they each have advantages and disadvantages that you need to know in order to choose the one that will suit your project.
To take a pleasant comparison, creating a business means wanting to go on a long journey alone or accompanied and aboard a vehicle.
- The first step is first to choose the destination, the travel companions, draw the route, organize the logistics, plan the budget, its financing, etc.
- The second step will be to choose the vehicle suitable for this trip: a small car, a minivan, a motorhome, an ATV, etc.
- The third step, to launch you into the great outdoors in your brand new vehicle, will be to register it, obtain its gray card, do the technical inspection, insure it well, etc.
Well, to create your business, these will be exactly the same 3 steps that we will find!
- 1/ Fine-tune the idea of the business you dream of
- 2/ Choose the entity that will allow this idea to exist
- 3/ Implement the existence of this company
1/ First step to create your business: refine the idea of the dream business
Start by asking yourself the right questions
Becoming an entrepreneur is good, but depending on the type of project, if you are alone or with partners, if you have financing or not, what company will you create that is completely adapted to ensure your success?
You will have to clearly define your initial idea, seek information and opinions. Then ask yourself the right questions : will this be my main or secondary activity, what are the constraints linked to this market, the competition, do I envisage an international outlet….
Creating your business starts with putting your ideas on a business plan
You know, there is no better way to clarify all this than to write a good business plan to verify the choice of company as well as the viability and profitability of the project. It will allow you to test and validate your business idea, and above all to formalize, confront, convince, anticipate and communicate on your project.
To achieve success, remember that it takes courage, commitment, money, and luck. But your great idea will eventually work and ensure the success of your business.
2/ Second step to create your business: choose the entity that will allow this idea to exist
Simplifying administrative procedures is possible!
Starting a business is an important project. The decisions you make today affect your entire business. Even if it is a “simplified” status such as self-employment for example, the administrative procedures are more complicated than they seem (registration procedures vary according to your project, several choices of taxation possible, possible help that is not well known, etc.).
This is why it may be interesting to contact companies specializing in these procedures, such as contract factory, which offers you considerable time savings by providing advice and taking care of all the administrative and legal aspects.
To create your business is to bring your idea into existence in the form of a legal entity which acts in its own name (except for a branch or a micro-enterprise), which is therefore responsible, vis-à-vis its customers and suppliers, but also of the state.
Choose the form of company that is appropriate to make my business exist
Finding the right structure for your business depends on a number of factors: how you would see your business evolve, what are the risks of which one you choose, what is the status of the leader, the desired capital and how many people will be involved?
In France, you have the choice between several types of companies which have different characteristics and obligations. We can thus define 3 main entrepreneurial categories:
SELF-CONTRACTOR to test your activity
This status allows you to register quickly in a field of activity, to obtain a SIRET number (and therefore to be able to invoice). The advantage? You only pay taxes on what you earn.
Perfect for testing an activity, this status nevertheless limits income, with an annual turnover ceiling of €176,200 for an e-commerce activity (goods) for example.
EI, EIRL or EURL if you feel self-employed for a turnover < €176,200
The Sole Proprietorship (EI) has few social charges, no minimum capital and few formalities, but you are personally committed.
The Sole Proprietorship with Limited Liability makes it possible to engage in an activity without threatening all of one’s assets. Its constraints are heavier than IS.
The Sole Proprietorship Limited Liability Company limits the risks to contributions only and is particularly flexible in its operation. However, you do not have employee status as a manager, as is the case in the SARL.
SARL, SAS or SA, to be one to several partners
The Limited Liability Company (SARL) allows you to be a partner and manager. The minimum capital is 1 symbolic euro.
The Société Anonyme (SA) has at least 7 partners and a capital of €37,000.
The Simplified Joint Stock Company, with capital freely set by the shareholders, is one of the preferred forms of entrepreneurship today.
3/ Third step: Creating my business means making it exist
Give a legal and legal existence to my company
To prepare the company you have chosen for official recognition, you must first write its statutes. It is also not useless to find help for their writing, which is complex and very time-consuming.
These statutes will give the scope of the company’s responsibilities, regulate the powers of the partners, and will indicate, among other things, the amount of share capital brought into the company.
This amount of share capital, contributed in cash or in kind, must be in line with the company’s project. It will appear on all official documents (Kbis, invoices, stamps, etc.).
Give an administrative existence to my company
It is then time to register your company in the Trade and Companies Register by contacting the Registry of the Commercial Court on which the company to be declared depends.
It will then be necessary to add to the articles of association and to the share capital, a list of documents that must be filed:
- Identity card of each leader
- a certificate of affiliation for each manager
- a sworn statement of non-conviction for each leader
- head office address
- A declaration of the beneficial owners of the company
- a CERFA form adapted to the form of company chosen
- a check to cover court costs
C ertain additional documents may be necessary depending on the type of company creation, such as the marriage or PACS certificate, a notarized declaration of exemption from seizure, but also in the event of the contribution of one or more common assets, the justification spousal information (except in corporations), etc.
Anyone can then consult it by requesting it from the registry of the court concerned.
Indeed, the Kbis lists all the characteristics of the company, including its SIRET number, which is its identity card. The video below summarizes in less than 2 minutes the essentials of what concerns the Kbis.
Recovery of deductible VAT on expenses
As part of its activity, a company incurs expenses which are invoiced to it with VAT.
Only companies subject to VAT can exercise the right to deduct under certain conditions, including:
- The receipt (invoice) must clearly show the amount of VAT.
- VAT must be borne on an expense only from the moment it is payable by the supplier.
To collect and recover VAT, your business must have a VAT number (intra-community for all trade within the EU). This number will be assigned to you automatically by the tax authorities when the Registry has registered your company.
Declaration to URSSAF
If you have employees in your company, you are required to declare the sums received by your employees and to pay the contributions and social security contributions to Urssaf.
Similarly, an independent auto-entrepreneur must also declare his turnover to URSAFF.
After completing these three steps, your business is now up and running. You have all the keys in hand for its implementation.
The route and the obstacles to overcome are numerous and sometimes long, often because of the administrative back and forth. Building your business on your own is not a “long quiet river”.