{"id":247276,"date":"2022-03-09T10:27:00","date_gmt":"2022-03-09T09:27:00","guid":{"rendered":"https:\/\/www.altermes.fr\/sarl-vs-sas-which-legal-form-to-choose\/"},"modified":"2023-12-14T12:31:29","modified_gmt":"2023-12-14T11:31:29","slug":"sarl-vs-sas-which-legal-form-to-choose","status":"publish","type":"post","link":"https:\/\/www.altermes.fr\/en\/sarl-vs-sas-which-legal-form-to-choose\/","title":{"rendered":"SARL vs SAS, which legal form to choose?"},"content":{"rendered":"\n<p>by R\u00e9my Brachet, Alterm\u00e8s partner in charge of public accounting<\/p>\n\n<p>Choosing the right legal structure (SAS or SARL) is an important step in setting up a business, and has a direct influence on the future of the structure, particularly in terms of :<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Corporate taxation<\/li>\n\n\n\n<li>The social security system for managers<\/li>\n\n\n\n<li>The company&#8217;s future development (arrival of partners or investors, etc.)<\/li>\n\n\n\n<li>How the company operates (business sector, partners, etc.)<\/li>\n<\/ul>\n\n<div class=\"wp-block-columns are-vertically-aligned-center is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"SARL vs SAS quel choix de soci\u00e9t\u00e9\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/d-A7XpzJjYk?feature=oembed\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">SARL (limited liability company)<\/h2>\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Benefits<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Possibility of creating a company with a single shareholder (EURL); <\/strong><\/li>\n\n\n\n<li><strong>Partners&#8217; liability limited to contributions<\/strong>;<\/li>\n\n\n\n<li><strong>Possibility of being taxed at IR <\/strong>under certain conditions (EURL or SARL de famille);<\/li>\n\n\n\n<li>The <strong>remuneration of the majority<\/strong> shareholder falls under the category of non-salaried workers (self-employed), which <strong>results in a lower rate of social security contributions than that of an employee<\/strong> (contribution rate of 40 &#8211; 45% vs. 75% &#8211; 80% for the director of an SAS);<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Disadvantages<\/h3>\n<\/div>\n<\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>By-laws and rules of governance governed by<\/strong> the French Commercial Code;<\/li>\n\n\n\n<li>The majority shareholder is classified as a self-employed worker, which means that his or her <strong>social security protection is inferior to that of an employee (old age\/work accident);<\/strong><\/li>\n\n\n\n<li><strong>Minimum flat-rate social security contributions for the manager (TNS) despite the absence of remuneration<\/strong> (particularly during the start-up phase);<\/li>\n\n\n\n<li><strong>The calculation of social security contributions<\/strong> is based on income n-2 or n-1, which<strong> means that there is a cash flow gap to be anticipated<\/strong> (particularly in the start-up phase);<\/li>\n\n\n\n<li><strong>Dividends are partially subject to social security contributions, which means that the tax cost of dividends is higher than under the SAS system<\/strong>;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">SAS (simplified joint-stock company)<\/h2>\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Benefits<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Possibility of creating a company with a single shareholder (SASU)<\/strong>;<\/li>\n\n\n\n<li><strong>Partners&#8217; liability limited to contributions<\/strong>;<\/li>\n\n\n\n<li><strong>Great freedom in the drafting of bylaws<\/strong> (possibility of creating management bodies with specific rules according to management needs);<\/li>\n\n\n\n<li><strong>Managers (Chairman, CEO, etc.) are treated as employees<\/strong>, which means that they enjoy a <strong>high level of social protection<\/strong> (old age\/work accident);<\/li>\n\n\n\n<li>Possibility of paying <strong>dividends at the 30% tax rate<\/strong>;<\/li>\n\n\n\n<li><strong>No minimum social security contributions <\/strong>in the absence of remuneration (particularly during the start-up phase);<\/li>\n\n\n\n<li>The <strong>tax system for the sale of SAS shares is more advantageous <\/strong>than that of the SARL;<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Disadvantages<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Social security contributions on salaries are almost 2 times higher than those applied to self-employed workers<\/strong>;<\/li>\n\n\n\n<li><strong>Possibility of being taxed on income tax <\/strong>for a limited period of 5 years;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n<p>In conclusion, the choice of legal structure depends essentially on the current and future personal and professional situation of the entrepreneur(s).<\/p>\n\n<p>It&#8217;s an important choice that shouldn&#8217;t be overlooked.  <\/p>\n\n<p>\ud83d\udc46 Alterm\u00e8s <a href=\"https:\/\/www.altermes.fr\/en\/accounting-expertise\/\">offers business start-up support<\/a> to help you make the right choices!<\/p>\n\n<p>\u2753 A question? A project?  <strong><a href=\"https:\/\/www.altermes.fr\/en\/accounting-expertise\/\">Don&#8217;t hesitate to contact us!<\/a><\/strong><\/p>\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/www.altermes.fr\/en\/contact\/\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/IejsMRUQLlphOfMmI1\/giphy.gif\" alt=\"\"><\/a><\/figure>","protected":false},"excerpt":{"rendered":"<p>What legal form should you choose when setting up your company?<\/p>\n","protected":false},"author":2,"featured_media":247991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[54,55],"tags":[],"class_list":["post-247276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-expertise","category-engineering-and-asset-management-consulting"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/247276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/comments?post=247276"}],"version-history":[{"count":3,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/247276\/revisions"}],"predecessor-version":[{"id":247403,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/247276\/revisions\/247403"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/media\/247991"}],"wp:attachment":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/media?parent=247276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/categories?post=247276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/tags?post=247276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}