Many people are interested in starting as a self-entrepreneur. This initiative is encouraged by Sophie de Menthon, President of the ETHIC movement (Entreprises de taille Humaine Indépendantes et de Croissance). However, before launching, it is essential to know the advantages and disadvantages of this status.
The advantages of the auto-entrepreneur status
The first advantage of this status is that it is very simple to set up. Indeed, it only takes a few minutes to do the steps on the Internet. Secondly, it is also a very flexible status that is easy to manage both administratively and financially. For example, it is much less cumbersome than a company or a sole proprietorship with a real regime.
The second advantage is the level of taxes, which are much lower than for other statuses. Indeed, they range from 13.80% to 24.2% depending on the activity.
Another advantage, for customers this time, is that the auto-entrepreneur is not subject to VAT. He does not have to calculate and therefore pay Value Added Tax every month. Management is therefore easier and the use of an accountant is not necessary (yet another additional expense that is taking off).
Disadvantages of the auto-entrepreneur status
The first disadvantage of self-employed status is an income ceiling. In the provision of services, it is set at 33,200 euros and in the sale of goods, the bar is set at 82,800 euros. If the professional ever exceeds this ceiling, he or she will have to change status.
Second disadvantage: it is not possible to deduct his expenses. As an auto-entrepreneur, it is not possible to deduct his expenses from his turnover. As a result, he has to pay taxes on his turnover. If he has significant expenses, this type of status is therefore not recommended.
Becoming an auto-entrepreneur is therefore not so complicated and the advantages are numerous. The ETHIC movement, chaired by Sophie de Menthon, encourages this initiative: creating your own business should be an opportunity given to everyone.
