Self-employed professionals: everything you need to know to get started!
Are you a self-employed professional looking to start up or continue your business under the micro-entrepreneur scheme (formerly known as auto-entrepreneur)? How exactly do you set up a self-employed business or practice a self-employed profession, auto-entrepreneur or micro-entrepreneur? The procedures involved in setting up and running a business on a day-to-day basis, as well as the payment of social security contributions, are simplified thanks to the auto-entrepreneur status.
While the micro scheme offers many advantages for your sole proprietorship, as we shall see, there are some specific features you need to be aware of before adopting it wholeheartedly. In terms of social security, tax and accounting obligations, what are the special features you need to be aware of if you want to run your business smoothly? What formalities apply? Get to grips with the subtleties, save yourself the trouble, and discover what dedicated tools can do for you!
What professional activities are covered by the liberal professions?
A liberal profession is...
... first and foremost a self-employed professional activity that does not fall within any of the following sectors:
- commerce
- industry
- craft
- agriculture.
Self-employed activities, which mainly involve the provision of intellectual, technical or care services, are carried out by people ..:
"...] independently and on their own responsibility, in the interests of the client or the public, ... by means of professional qualifications and in compliance with ethical principles or professional ethics".
service-public.fr
☝ In legal terms, a liberal profession is governed by civil law, not commercial law.
Regulated or unregulated liberal professions?
What professions are regulated?
These are professions for which a higher-education diploma has been awarded, the practice of which is governed by a professional body (order, chamber, trade union, etc.).
They include lawyers, chartered accountants, self-employed nurses, doctors, midwives, etc.
👉 Some of these professions must comply with a code of ethics, and sanctions are applied in the event of non-compliance.
👉 The Public Health Code regulates certain healthcare services; this applies to dieticians, self-employed nurses, masseur-physiotherapists, speech therapists, chiropodists, etc.
👉 Lastly, some activities are the responsibility of state-appointed professionals: public or ministerial officers. These include solicitors at appeal courts, auctioneers, commercial court clerks, bailiffs and notaries, who are appointed under specific procedures by decision of a minister.
What are the unregulated liberal professions?
These are other professions practised as sole traders that are not part of the craft, commercial, industrial or agricultural activities.
These professions are not controlled by a professional body. They are essentially intellectual or creative activities. They can be practised freely most of the time, but sometimes authorisation or entry on the public register is required.
They include consultants, translators, etc.
Changes for the liberal professions and the self-employed in 2020
Caisse Nationale RSI
🔎 What 's new in ACRE for micro-entrepreneurs in 2020 :
- ACRE has been subject to new conditions since 1 January 2020. To qualify, you must, for example, be a jobseeker, be under 25, or meet other criteria.
- This aid is granted for a period of one year, compared with three years previously.
- Finally, the rate of exemption has been reduced from 75% to 50% for new beneficiaries. For professionals who benefited before 2020, the exemption rates have also changed: 25% in the second year and 10% in the third year.
Source: Captaincontrat.com
Combining self-employed status with auto-entrepreneur status: particularities and advantages
Difference with auto-entrepreneur status for other activities
Compared with the normal micro-enterprise scheme, here are the variations that await you as a self-employed professional:
- in terms of the turnover ceiling: the ceiling differs depending on the activity.
- tax: the profits generated by your self-employed activity are subject to income tax at a rate of 2.2%. The tax regime for self-employed professionals specifically comes under the non-commercial profits or BNC category, also known as the " micro BNC " regime.
- social security: self-employed professionals must join organisations such as URSSAF to pay social security contributions and obtain family allowances, and Sécurité sociale des indépendants (SSI) to obtain sickness/maternity cover.
Advantages and disadvantages of micro-enterprises
The advantages of self-employed self-employed professionals
The auto-entrepreneur status offers a number of administrative simplifications.
From 1 January 2020, as part of a simplification drive, social security for the self-employed will no longer be separate from the general social security system. Self-employed micro-entrepreneurs are now affiliated to URSSAF and Sécurité sociale des indépendants(SSI, formerly RSI).
As far as social security contributions are concerned, you pay contributions based on your turnover. If you have no revenue, the rate will be zero! That said, you will not be exempted from making declarations; they are still compulsory.
☝ Good to know: for the liberal professions covered by the SSI, the rate is 22% of turnover.
Social security contributions under the micro-enterprise scheme include:
- sickness and maternity insurance
- family allowances
- invalidity and death,
- basic and supplementary pensions, etc.
To this rate should be added the 0.2% contribution to vocational training, giving an overall rate of 22.2%.
Another advantage is that the formalities for declaring these charges are simplified: you can go to the dedicated website autoentrepreneur.urssaf.fr, declare your income, according to a monthly or quarterly deadline that you have chosen in advance, and the calculation is carried out automatically. You can choose to pay by SEPA direct debit or by credit card.
In addition, you can apply for ACRE (aide à la création ou à la reprise d'entreprise), which allows professionals starting up a business to benefit from a reduction in the rate at which their social security contributions are calculated over a given period. Applications must be submitted within 45 days of the date on which the micro-enterprise is set up, and must meet certain conditions.
The disadvantages of self-employed self-employed professionals
First of all, as a self-employed person, self-employed entrepreneurs are subject to an income ceiling: their annual turnover must not exceed the threshold of €72,500 excluding tax for the provision of services (following the revaluation of the ceiling in 2020).
In addition, as the business is strictly individual, the professional cannot take on any employees.
Selection of software for self-employed professionals and self-employed self-employed entrepreneurs
Indy (formerly Georges) Accounting
Indy is a software package specially designed to meet the accounting management needs of self-employed professionals in the health, legal and consultancy sectors who are subject to the BNC regime. A real assistant, Indy automates all your accounting: it retrieves your transactions by synchronising them with your bank, and automatically allocates income and expenditure to the right accounts.
Its strengths include
- an ultra-simplified tool that is highly accessible to accounting beginners,
- electronic transmission of tax returns to the AGA,
- responsive, efficient and attentive customer support.
MonAE
MonAE is a software package designed to meet the needs of auto-entrepreneurs. Whether you need to declare your turnover, deal with administrative formalities or keep your accounts, MonAE takes care of everything, right down to the compulsory information on your invoices. In addition to bookkeeping and invoicing, the solution also tracks your customers and manages your business using an intuitive dashboard.
Its strengths include
- the integration of artificial intelligence for automation,
- automatic bookkeeping of receipts
- delegation of relations with public bodies by a team of advisers.
Wity
Wity is software that automates the management of your accounting online. Wity is a 100% digital accounting firm that provides a solution to help you set up and manage your business on a day-to-day basis. Through its online platform, it offers you personalised expert monitoring and advice for your business, wherever you are and whenever you need it. Your online chartered accountant is there to support you as you go about your business with peace of mind!
Its strengths include
- retrieval of your banking transactions and automatic categorisation,
- monitoring and alerting you if your micro-business thresholds are crossed,
- personalised support from a dedicated accountant throughout your business.
Equipping yourself for better management
As a self-employed professional, if the micro-enterprise scheme seems suitable for your activity, you now have the basics to get started!
As we have seen, software solutions can be a key asset for managing your tax formalities, accounting and invoicing. Don't hesitate to ask for a free trial version, so you can see for yourself just how much automation can change your life!
Article translated from French