Wage portage or microenterprise: what status to start freelancing?

When you want to start a freelance activity, you must choose a legal status for your business. This is a very important choice, because the status chosen will have an impact on the life of your company in terms of social security, liability and taxation.

Among the many possible options, microenterprise and wage portage are often chosen to start a service activity. Here is a summary of the terms of its two statuses and how to make the right choice between these two options.

Wage portage: freedom of the self-employed with employee security

Wage portage is an intermediate option between independence and employee status. It is a solution that allows you to test an activity before embarking on the creation of a business. 

Be supported to launch a new activity

The principle of wage portage is to be employed by a wage portage company, with employee status and all the advantages that entails, and at the same time to carry out missions that you choose independently. It is the umbrella company that manages all the administrative billing procedures and you do not have to create your business.

This solution is ideal for those looking for freedom while benefiting from security, simple administrative procedures and support. The umbrella company acts as an intermediary between you and your customers. It invoices your customers and pays you a salary. It is also support that provides you with social protection, gives you visibility with prospects, and advises you throughout your life as an entrepreneur.

Stay in control of your choice of missions

Although it is the portage company that employs you, it is you who finds and chooses your missions. You therefore keep control of your missions, your schedule and your method of organization. 

Choose a payroll company

There are many carrier companies. Some are specialized in certain sectors of activity. The same umbrella company can have branches in several cities such as Rhapsody Marseille and Rhapsody Lyon . The recruitment expertise of its companies is also an asset when it comes to advising you on your entrepreneurial project.

Microenterprise: becoming self-employed easily

The status of microentrepreneur is ideal for starting an activity simply and inexpensively, provided that this activity falls within the terms of this status.

A status open to commercial, craft and liberal activities

The status of microentrepreneur is open to the majority of professions, but it is necessary to find out about the few that are excluded. Authorized activities are divided into three categories:

  • Commercial activities: purchase and sale of goods, but also provision of commercial services (bed and breakfast for example);
  • Craft activities: craft creations and manufacturing (jewelry or other objects), as well as services (plumbers, painters, etc.);
  • Liberal activities: advice and expertise (coach, trainer, etc.).

It is necessary to choose in which category your activity falls under, because that impacts the administrative formalities of your company. 

Simplified creation and management procedures

The main advantage of the status of microentrepreneur is to benefit from simplified procedures for the creation of your company, but also for its management. The main advantages are:
• A simplified, fast and free online creation;
• No capital contribution required;
• A simple calculation and payment method for social security contributions;
• No social contributions to pay in the absence of revenue;
• Accounting limited to keeping a recipe book;
• No VAT to be managed below a certain turnover threshold.

Advantages but also limitations

If the status of microentrepreneur has many advantages, it also has its limits. The main one is the limitation of the turnover (CA). Indeed, this status is not made to make a big turnover. The limit is 176,200 euros excluding tax for commercial activities, and 72,600 euros excluding tax for commercial or craft service activities and the liberal professions. Beyond this ceiling you leave the status of the microphone. 
There are also VAT ceilings. If you want to avoid having to manage VAT, your turnover ceiling not to be exceeded will be 85,800 euros for sales activities and 34,400 euros for services.
Finally, as expenses are not deductible, if your activity entails significant expenses, this status is not interesting.

Make the choice between microenterprise and wage portage 

Know first of all that it is quite possible to combine the two statuses. Indeed, the status of microentrepreneur is compatible with that of employee. Wage portage brings you all the advantages of salaried employment in terms of social security coverage, pension contributions and unemployment insurance. But this has a cost, around 10% on your turnover. If you are a phobic of red tape, this cost remains a good investment and guarantees peace of mind. But if the paperwork does not panic you, and if you want to be totally independent, microenterprise is for you.

Leave a Reply

Your email address will not be published. Required fields are marked *