Sole proprietorship or company in France: tax comparison
Taxes and contributions for a sole proprietor under each available system and for your own company, for a resident of the chosen country with the same profit.
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Form
Micro-entrepreneur (BNC)
Sole proprietorMicro-entrepreneur — régime micro-BNC et micro-social
Contributions are 25.6% of turnover plus 0.2% for vocational training, paid monthly or quarterly. Income tax uses the progressive scale on 66% of turnover (a flat 34% expense allowance); actual expenses are ignored.
Conditions
Turnover excluding VAT in 2024 or 2025 of no more than EUR 83,600 (BNC services); the regime ends if the limit is exceeded two years in a row.
VAT: exemption (franchise en base) for services up to EUR 37,500 of turnover a year; above that, VAT registration is required.
Sole proprietorMicro-entrepreneur — versement forfaitaire libératoire de l'impôt sur le revenu
Same as the micro-entrepreneur, but income tax is paid together with contributions at 2.2% of turnover, and no scale income tax is due on this income.
Conditions
The household reference income (RFR) for year N−2 must not exceed EUR 29,579 for a single person. The calculation takes RFR as 66% of this year's turnover.
Apply to URSSAF by 30 September; it applies from 1 January of the following year; for a new business, by the end of the 3rd month after registration. Turnover and VAT limits as for the micro-entrepreneur.
Sole proprietorEntreprise individuelle — BNC, régime de la déclaration contrôlée
Tax and contributions are based on actual profit. SSI contributions are charged on profit before contributions minus 26%; income tax uses the progressive scale on profit minus contributions.
Conditions
No turnover limit. Requires records of income and expenses and the annual 2035 return; VAT from EUR 37,500 of turnover a year.
The calculation is for a business older than 2 years (in the first years URSSAF charges fixed provisional contributions); minimum pension, sickness-benefit and disability contributions are due even at zero profit.
CompanySociété par actions simplifiée unipersonnelle (SASU) à l'impôt sur les sociétés
The company pays corporate tax: 15% up to EUR 42,500 and 25% above. A president without salary pays no contributions; dividends bear 31.4% (12.8% tax + 18.6% social levies).
Conditions
The 15% rate applies if company turnover is below EUR 10 million, share capital is fully paid up and at least 75% is held by individuals.
Without a salary the president has no pension or health cover through the company. VAT is not included (threshold for services EUR 37,500 a year).
CompanyEntreprise unipersonnelle à responsabilité limitée (EURL) à l'impôt sur les sociétés, gérant associé unique
Corporate tax as for the SASU. The owner-manager is self-employed (SSI): minimum contributions are due even without income, and dividends above 10% of capital bear SSI contributions instead of the 18.6% social levies.
Conditions
The calculation assumes share capital of EUR 1,000 with no shareholder current-account balance, so almost all dividends bear SSI contributions.
The 15% tax rate has the same conditions as for the SASU. Manager contributions are computed as for a self-employed person with more than 2 years of activity; VAT is not included.
Business activity: IT / consulting services for business clients (unregulated liberal profession, BNC income)
One owner, a French tax resident, with no employees, no other income and no children (1 tax share), full year.
Income tax uses the scale of the 2026 Finance Act (the latest published), with the décote and the high-income surcharge; VAT is not included.
Self-employed contributions are for a business older than 2 years and are treated as paid in the same year (no later adjustment).
For companies the owner draws no salary; after-tax profit is either paid out in full as dividends or kept in the company. Dividends bear the 31.4% flat rate (no scale option).
DoubleTaxation