Comments on: Starting a French entreprise http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/ Living in France and daily life for a UK expat in the French blog! Thu, 24 May 2012 13:33:13 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Boris http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/comment-page-1/#comment-16070 Boris Sun, 01 Nov 2009 11:10:53 +0000 http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/#comment-16070 Laurie, if the business is to be for gites it is often the case that a micro-enterprise is best - up to 70000 euros can be earned, no taxe professionelle is payable, and there is an automatic deduction of about 70% of assumed income for costs (whether they exist or not). This is to change slightly and there are certain criteria to be eligible to avoid a ceiling of 33000 euros with a deduction of 50%. (see http://www.laymyhat.com/forum/viewtopic.php?t=10597 and elsewhere on that forum for more details - it's also a good place to ask other questions of experienced holiday rental owners). Social contributions are also typically paid at a mucher lower rate using this approach (12% rather than 40%, which is the rate applied to salary) If your income will be higher than these limits, or your costs will exceed 70% of income, then you will need to look at other options eg a SARL or SCI when taxe professionelle might also be payable - although that tax is being substantially changed (reduced) for many businesses from next year so again no clear answer is possible! If your income will be above the 70k limit i would recommend getting an accountant to be sure you have the right structure since the implications of getting it wrong can be very expensive. Anyway, take a look through that forum which answers most questions and see if that helps. Cheers Laurie, if the business is to be for gites it is often the case that a micro-enterprise is best – up to 70000 euros can be earned, no taxe professionelle is payable, and there is an automatic deduction of about 70% of assumed income for costs (whether they exist or not). This is to change slightly and there are certain criteria to be eligible to avoid a ceiling of 33000 euros with a deduction of 50%. (see http://www.laymyhat.com/forum/viewtopic.php?t=10597 and elsewhere on that forum for more details – it’s also a good place to ask other questions of experienced holiday rental owners). Social contributions are also typically paid at a mucher lower rate using this approach (12% rather than 40%, which is the rate applied to salary)
If your income will be higher than these limits, or your costs will exceed 70% of income, then you will need to look at other options eg a SARL or SCI when taxe professionelle might also be payable – although that tax is being substantially changed (reduced) for many businesses from next year so again no clear answer is possible! If your income will be above the 70k limit i would recommend getting an accountant to be sure you have the right structure since the implications of getting it wrong can be very expensive.
Anyway, take a look through that forum which answers most questions and see if that helps.
Cheers

]]> By: laurie shaw http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/comment-page-1/#comment-16068 laurie shaw Sun, 01 Nov 2009 09:31:58 +0000 http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/#comment-16068 I would like to know more about the implications of other important taxes before deciding whether to register as an autoentrepreneur or as a micro entreprise. We want to rent out the spare part of our extensive property as gites. As I understand it we will have to pay the taxe professionnelle which is calculated on the asset value, that is to say the value of the properties. Will we also have to pay taxe foncière ( property value tax ) and taxe d'habitation ( which is as I understand it levied on any furnished property, empty or not ). Is there no way of simply declaring the true 'income' after deduction of expenses , and it being treated as salary ? I would like to know more about the implications of other important taxes before deciding whether to register as an autoentrepreneur or as a micro entreprise. We want to rent out the spare part of our extensive property as gites. As I understand it we will have to pay the taxe professionnelle which is calculated on the asset value, that is to say the value of the properties. Will we also have to pay taxe foncière ( property value tax ) and taxe d’habitation ( which is as I understand it levied on any furnished property, empty or not ). Is there no way of simply declaring the true ‘income’ after deduction of expenses , and it being treated as salary ?

]]> By: Jean http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/comment-page-1/#comment-14765 Jean Sat, 19 Apr 2008 11:31:46 +0000 http://www.francethisway.com/wp/starting-a-french-entreprise/2008/04/#comment-14765 We very nearly went down the Micro Entreprise route but changed our minds and I'm glad we did. We are an SARL so have to charge TVA but can of course reclaim it too. Part of the business is selling things and with an ME you are limited on how much you can sell. I do agree with you about a good accountant. We pay 200 euros per month - he does our personal tax as well for this - and it is DEFINITELY worth while! We very nearly went down the Micro Entreprise route but changed our minds and I’m glad we did. We are an SARL so have to charge TVA but can of course reclaim it too. Part of the business is selling things and with an ME you are limited on how much you can sell.

I do agree with you about a good accountant. We pay 200 euros per month – he does our personal tax as well for this – and it is DEFINITELY worth while!

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