Starting a freelance activity remains a dream for many professionals who want to gain independence and freedom. However, this decision must be anticipated, because setting up as a freelancer requires real thought to know which business status to choose.
The fiscal, social, legal and accounting consequences will indeed differ, which is why it's worth turning to experts in freelance activity like Blank: find out why?
Starting a freelance activity: what status and legal form?
Before setting up as freelance, choice of status is essential, because it determines the accounting, tax, financial and social obligations.
The former auto-entrepreneur status, now called micro-entreprise, is often preferred, but it is not the only option: what is the best choice for you?
Going freelance: the micro-enterprise, a simple and quick solution
The micro-entreprise (formerly auto-entrepreneur) remains without doubt the simplest regime for starting out as an independent worker without difficulty.
In exchange for a few constraints (turnover caps, regulated activities…), this status allows you to maintain a simplified accounting :
- Monthly or quarterly Urssaf declaration
- VAT exemption depending on thresholds
- Possibility to pay income tax at the same time as Urssaf declarations thanks to the liberatory lump-sum payment
In general, freelancing requires being rigorous about the payment of mandatory contributions, under penalty of putting their business in difficulty. That is why a business account like Blank includes in its freelance offering the possibility for micro-entrepreneurs to file Urssaf declarations automatically.
However, the independent professional cannot separate personal and business assets, nor deduct actual expenses. In addition, they are subject to a turnover threshold: if a freelancer’s activity exceeds €77,700 in annual turnover, their micro-enterprise automatically converts to a Sole Proprietorship (Entreprise Individuelle, EI).
Setting up as a freelancer: the sole proprietorship, simplified management
To deduct expenses and recover VAT, the freelancer can opt for the sole proprietorship regime: social contributions are higher and they must pay income tax, but they are not subject to a turnover limit as with the micro-enterprise. This sole trader business can be created free of charge.
Becoming a freelancer: the EURL with a monthly salary
The single-member limited liability company (EURL) can be a a good compromise balance between contribution rates and the level of employee social protection.
As a freelancer, you are the sole manager of this SARL variant, which requires drafting articles of association and depositing share capital of at least one euro.
Note that the capital deposit online is possible with Blank, the professional account for independents: the cost is €69 excluding VAT with the certificate of capital deposit issued in just 72 hours. These formalities allow you to protect your personal assets and benefit from the advantages of salaried employment.
However, this implies a stricter accounting, subject to VAT or not depending on the proposed tax regime.
Setting up as a freelancer: the SASU to receive dividends
The SASU, a single-member simplified joint-stock company, corresponds to the SAS, with the freelancer as the sole shareholder. Its liability is limited to contributions, the share capital starting from €1.
Compensation can be paid as dividends, which provides a favorable tax treatment, but at the cost of more expensive social protection typical for the self-employed (nearly 75% of the net compensation paid).
The choice of regime and legal status therefore requires careful thought, bearing in mind that this choice is not set in stone: the legal status of a SASU or an EURL can change by modifying the share capital or with the arrival of a new partner.
If in doubt, don't hesitate to consult Blank's experts for free.
The secret to a successful freelance business: plan ahead and get support
Gaining independence by choosing freelancing actually rests on a contradiction that the future freelancer must be aware of: as the sole shareholder, they combine the role of chairman, who should have the long-term vision, and that of CEO, who is expected to be hands-on.
How can you maintain the chairman's perspective when your hands are on the handlebars as CEO? The answer is simple: you must know how to get help and advice from professionals people who have experience and perspective.
Get advice before starting your freelance activity
To know which freelance status is best, the future self-employed worker must obtain a personalized advice, depending on its activity (consulting, trade, artisanal services) and its objectives (turnover, development growth).
Chartered accountant, chamber of commerce, or Blank can provide valuable, personalized information.
Getting information from public or semi-public organizations also proves beneficial, to receive certain financial aid : unemployment benefits or return-to-work assistance (ARE) are allowed for a micro-enterprise or a SASU. You should also inquire about specific schemes, such as ARCE (Assistance for Business Takeover and Creation).
Beyond these administrative aspects, the future freelancer must finally consider the practical organization of their upcoming activity:
- Location: dedicated room at home, coworking space, working outdoors…
- Equipment and office layout, balancing ergonomics and well-being
- Working hours: establish a routine to avoid procrastination
To find ideas, do not hesitate to browse the blog or the micro-enterprise guide from Blank.
Get advice while working as a freelancer
When becoming an independent worker, the freelancer too often neglects a major element, accounting : yet it is the foundation for assessing turnover, profit, productivity, meeting accounting and tax obligations…
To avoid making mistakes, a freelancing activity must respect 5 points:
- Have a separate professional bank account
- Create a projected budget
- Invoice everything at a fair price and follow up on unpaid invoices, which is why a pro online bank that also offers invoicing and quoting tools
- Anticipate cash flow fluctuations
- Ask for clarification if in doubt
How to choose the best bank for a freelance activity?
All too often, traditional banks do not fully meet the needs of freelance work, at least in spirit. The independent professional is looking for a banking solution that is responsive, agile, comprehensive, simple, and cost-effective.
This choice is all the more important because legally, every freelancer must hold a separate professional account.
An online professional account dedicated to freelancers
Born in early 2021 from the recognized expertise of Crédit Agricole, the Blank business account provides each professional with a reliable, simple and responsive solution:
- Reliable, because it is backed by a large group with international expertise
- Simple because opening an online pro account takes 5 minutes
- Responsive because it offers customer support 7 days a week by email, supplemented, depending on the plan, by access to an expert advisor or phone support 5 days a week
A full professional account for freelancers with all services
To offer a tailor-made solution to every freelancer or self-employed worker, Blank has developed three different plans adapted to everyone’s needs, each plan combining a configurable VISA BUSINESS card and a different package (number of SEPA transfers, number of checks to deposit, card limits…).
This a comprehensive offer ideal for freelancing can be reinforced by additional services, such as income protection cover, equipment breakdown insurance, or extended manufacturer warranty—particularly useful for reducing the isolation inherent to independent work.
To simplify the relationship with the self-employed worker, Blank also offers various services depending on the chosen plan, features like a quotes and invoicing tool, the ability to declare / pre-calculate / automatically pay Urssaf contributions for micro-entrepreneurs, or the option to scan invoices or expense receipts…
An online professional account for freelancers at a low price
To stand out from other business accounts, Blank chose transparent, competitive pricing through 3 financial and insurance service offers, ranging from €6 excl. VAT/month for the basic plan to €39 excl. VAT/month for the full plan.
This comprehensive professional solution does not just aim to simplify financial management for the future freelancer: it also sees itself as a an asset for any independent and diligent worker, by supporting them closely in their new activity.
