Entrepreneurship in France | Understanding the Differences between SASU and EURL
When you plan to start your own business, making the decision between EURL and SASU can be a real head-scratcher. We're here to shed some light on this topic and help you make an informed decision.
Whether you're dreaming of being your own boss, starting a new venture, or testing out your ideas, there are countless possibilities and ways to kickstart your entrepreneurial journey!
As a budding entrepreneur, one of the first crucial decisions you'll need to make is choosing the legal structure for your business: will it be a sole proprietorship or a company? This is where things like choosing between EURL and SASU come into play.
In order to assist you in making the right and wise choice, check out Micco's detailed comparison between these two structures.
Before diving into the different between SASU and EURL, it's essential to understand the offerings of Micco.
Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.
Micco's commitment to empowering business creators extends to:
- Effortless company registration processes
- Seamless professional bank account setup
- Convenient capital deposit management solutions
- A suite of additional financial tools and resources catered to entrepreneurs
With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.
Whether you're dreaming of being your own boss, starting a new venture, or testing out your ideas, there are countless possibilities and ways to kickstart your entrepreneurial journey!
As a budding entrepreneur, one of the first crucial decisions you'll need to make is choosing the legal structure for your business: will it be a sole proprietorship or a company? This is where things like choosing between EURL and SASU come into play.
In order to assist you in making the right and wise choice, check out Micco's detailed comparison between these two structures.
Contents:
- EURL or SASU: What Do These Companies Correspond to?
- Comparing the Procedures for Creating SASU or EURL
- Comparing SASU and EURL: Which Identity Suits the Director?
- EURL or SASU: Choosing Based on Taxation System
- FAQ
1. EURL or SASU: What Do These Companies Correspond to?
- SASU: Born for Freedom
SASU isn't a new legal form; it's a simplified single-shareholder simplified joint-stock company. Especially for young entrepreneurs, this is a highly popular legal structure because it's adaptable for everyone.
- EURL: Ensuring Safe Passage
On the other hand, EURL is also a single form of an existing company type: the limited liability company. Therefore, EURL is a limited liability company formed by a single partner.
2. Comparing SASU and EURL Creation Procedures
The creation procedures for these two company forms have some similarities. However, there are differences in the creation procedures for EURL and SASU.
Creation Procedures:
The main difference between these two single-partner company forms lies in the importance of the articles of association.
Indeed, SASU is the single form of SAS, so you have considerable freedom when drafting your articles of association. As the sole partner of SASU, you have the freedom to establish the operating rules of the company.
In contrast, the drafting of your articles of association for EURL is much stricter. You cannot overlook the legal provisions. These provisions govern the operation of your company and provide a more secure framework.
Adding New Partners:
When you wish to expand your company, you can open your structure to new partners. The procedure for transforming a single-partner company into a multi-partner company differs greatly between SASU and EURL.
In fact, transforming SASU into SAS is relatively simple. This does not require changing the company's articles of association. In this case, we call it simply opening up the social capital. You only need to modify your Kbis extract.
3. Comparing SASU and EURL: Director's Identity
Compared to the rules for creating and operating companies, the rules for directors of EURL and SASU are often the most tricky. There are many differences between these two structures.
Who Can Be a Director?
In this aspect, there are significant differences between EURL and SASU.
- The director of an EURL can only be a natural person. They are appointed by the sole partner of the EURL. Therefore, you can decide whether or not to appoint yourself as the director.
- As for the identity of the director of SASU, the daily management of the company is the responsibility of a chairman. This chairman is also appointed by the sole partner. Unlike in a sole proprietorship, the director of SASU can be either a natural person or a legal entity.
Social Security System
Similarly, another difference between SASU and EURL is the social security system.
Under the framework of SASU, the director is subject to the general provisions of the social security system. In this case, the chairman is considered to be a person equal to an employee. Therefore, in addition to unemployment insurance, he enjoys the same social security protection as an employee.
4. Choosing Your Identity Based on the Tax System: EURL or SASU
The applicable tax system varies depending on whether you choose EURL or SASU. That's why you need to keep all these characteristics in mind before creating EURL or SASU.
General Tax System
There are different general tax systems between these two company forms.
- In SASU, the default taxation is the corporate income tax (IS).
- EURL is, in principle, subject to personal income tax (IR).
Taxation in SASU
If you choose the SASU form, you are primarily subject to corporate income tax. In 2024, the tax rate for all companies is 25%, regardless of the level of turnover.
Taxation in EURL
In principle, EURL is subject to personal income tax (IR). The sole partner has the option to choose corporate income tax. However, this choice is irreversible, meaning you cannot revert back to the IR system.
5. FAQ
- What are the differences between EURL and SASU?
EURL is a single-person form of a limited liability company, whereas SASU is a single-person form of a simplified joint-stock company.
- Which is easier to create, EURL or SASU?
Procedurally, the creation processes of these two companies are similar. However, the creation of EURL is subject to more legal constraints.
- Choosing SASU or EURL: Which is better for the director?
The choice between the two largely depends on the director's preferences regarding responsibility and social security systems.
- EURL or SASU: Choosing based on the tax system?
The tax system is an important factor in choosing between EURL and SASU. The tax rules for each form are different, so it should be assessed based on your financial and tax situation.
Conclusion
The differences between EURL and SASU lie in their legal forms, creation procedures, director's identities, social security systems, and taxation systems. To make the right choice for your business needs and preferences, carefully consider the pros and cons of each form and seek advice from professionals before making a decision.
If you've made your decision and are ready to set up a SASU or EURL, Micco can help you register your company and open a dedicated business bank account.
Micco is your ticket to swift, streamlined financial management tailored to the pace of modern entrepreneurship. Experience the difference today and embrace a future where efficiency reigns supreme.
Summary of Characteristics of EURL and SASU:
