Start self-business: good or bad idea ?

Self-contractor is a simple status and accessible to anyone. It depends on the scheme of the micro enterprise. An employee, unemployed, student or pensioner, you want to start your activity. You launch in sole proprietorship and especially in self-business is a status that would suit you perfectly.

Advantages of embarking on self-business

This status has many advantages. Self-enterprise is accessible to all. Whatever your current professional life, you can create your sole proprietorship. Generally, self-entrepreneurs choose this scheme in order to test a activity and be able to turn back path if it doesn’t work.

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Procedures are quick, registration is free and accounting simplified. With this status, you can provide an income supplement from which you will have to deduct from social contributions. However, if you do not earn any turnover, you have no charge. Be careful, however, because contributions are based on your turnover and not, on profits so do not hesitate to do a simulation.

By embarking on self-entrepreneurship, you can create your own job and legitimize your business. You thus get a legal status and value your skills. In self-business, you concretize a project and put forward a know-how. This allows you to test your project with a lower risk.

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Disadvantages of embarking in self-enterprise

Self-contractor status has many advantages, but also some disadvantages. Self-entrepreneurship binds you to your business, it is not a separate entity from yourself so you are not protected against debts that your professional activity may incur. Unlike other legal forms such as EURL or SASU are limited to the contribution you make to the creation.

In addition, under the self-contractor regime you do not receive any unemployment insurance, but many other statuses have this drawback. Also think that if you do not make any turnover for a period of 24 consecutive months or for 8 consecutive quarters, you may lose your status. You can also lose your status, if you exceed a certain turnover ceiling.

Self-entrepreneurship allows you to have a status, but that may seem fragile for some providers. However, this status allows to have a legal existence, you can emphasize its provisional nature or simply designate yourself as independent.

If you want to go into society, the steps are more complex if you are a self-entrepreneur. Some professionals advise against putting themselves under this status, if you know that you are going to go into society.

How to embark on self-business?

To become a self-entrepreneur, it’s simple. You can make your declaration on the online self-contractor portal or at the business counter. You accompany your declaration with a photocopy of your identity document with the words “I certify on honor the accuracy of this proof of identification. Done to… the…”

The Business Formalities Centre will then send you your SIRET number, a notification regarding your tax system and various contact details. You can choose to pay your contributions monthly or quarterly. Reporting turnover will be made to the URSAFF either by mail or via the Internet.

The self-contractor status seduces with its simplicity and low cost. However, one must know how to weigh the pros and cons before embarking onadventure.

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