When you grow your business as a pro photographer, the choice of legal form is paramount. In addition to the choice of services, photo products for sale or the market in which to position itself, the legal structure of the company is important. The legal form of the company defines all the rules applicable to the life of a company: its organization or the tax system. So, if you want to start freelance, there are several options to consider. Here are some tips to help you start your business as a freelance. What is the status for photographer to choose?
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Step 1: Create a company or exercise on its own behalf?
This is the first question to ask: we must weigh the pros and cons of these two options.
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By practicing as an entrepreneur (on your account), the reporting and starting formalities are very simple to complete. Very quickly and at a relatively low cost, you can start your business. In the course of the life of society, formalities are few and largely simplified, especially at the accounting level. However, you will be personally liable for any losses caused (see step 2: there are arrangements to limit your liability )
If you choose to create a single company (EURL or SASU), you will be liable for the company’s debts only to the amount of money you put there. This is one of the major advantages of companies. On the negative side, there are formalities for creating more expensive and complex organization. In fact, to create a company it is necessary to write articles of association , publish a legal announcement of the creation of a company in a newspaper and send several documents to the registry.
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Step 2: Limit your liability to the maximum
As an entrepreneur, if you accumulate professional debts, your creditors will be able to pay on both your business and personal property. To avoid this disadvantage, you can choose the EIRL (Individual Contractor with Limited Liability). Thanks to this mechanism, you can simply separate your professional property from your personal property. On a document, you must list the goods that will be assigned to your activity. Creditors will no longer be able to seize your personal property.
Also think about the status of self-contractor ! Simplified accounting and tax obligations, no VAT billing, simplicity of creation… a good way to start your business as an independent.
Step 3: What is the best legal form?
There is no better legal form a priori. It all depends on your situation and activity. Starting as a self-entrepreneur is often useful for testing a project, starting an activity. If it turns out that the activity is destined to develop, a transformation is always possible in society (EURL or SARL). Nothing is definitively fixed: during the life of the company, the legal form can therefore evolve.
Change status along the way: the experience of a photographer!
Depending on your needs and situation, you have been, are, or will be required to change legal status as a professional photographer. This is a word that scares… SAS, SASU, EURL, EIRL, Micro-entrepreneur, SARL? It’s not always obvious to create your first company, so change status!? Don’t panic, at Lumys, some professional photographers have jumped the step. We asked Philippe Félicité to share his experience with us.
After sharing with us his tips to be effective on social networks, Philippe Félicité, photographer, explains why and how he changed from the status of micro-entrepreneur (former self-entrepreneur) to that of SAS (Simplified Stock Company).
Why be changed from micro-entrepreneur status to SAS?
“I decided to change my legal status because I had to change my material. You should know that when you are micro contractor (the new term for self-contractor), in terms of loads, you do not recover anything. I also wanted to free myself from RSI, social security for self-employed people! I also needed a status that could be consistent with my other employee status.”
In concrete terms, what does this change for you, this new status?
“Today I am president of my company, a single shareholder. My company is well separated from my heritage.* Everything that is in the company remains there, I collect VAT on the material. Since I have a photo studio at home, now I can spend the fee electricity in charges!
” *The SAS is a legal entity, which means that it has an existence that is independent of its founders. It has a heritage of its own and therefore separate from that of its associates. Their personal assets are protected in the event of corporate debts.
Amendment of statutes. I hope I understood it correctly.
This article was written with LegalVision
If you would like more information on the different legal forms, here are some articles to read:
- How to switch from self-contractor to a EURL or SASU? (CaptainContrat.com)
- How to switch from self-contractor to company? (Accountant-TPE.FR)
Move from self-entrepreneur to EURL or SASU (LeCoindesEntrepreneurs.fr)
Do not hesitate to get closer to your Chamber of Commerce and Industry!
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