When considering setting up his own business, any entrepreneur must ask himself about the legal status that will govern his future activity.

However, among other factors that come into play, the protection of personal assets should not be neglected.

But the law has just changed in this direction.

real risks

When you decide to go solo, you have to think about everything that could go wrong.

Imagine that the clientele is not there or that you suffer a severe blow to the point of accumulating debts... The whole issue is then to know whether, if you are unable to settle your creditors thanks to your activity, the latter could be reimbursed on your personal assets, such as your car, your savings account or even your house.

It is therefore a question of protecting you but also, by extension, your family.

However, the status of individual entrepreneur (EI), which allows you to start as a craftsman, trader, industrialist or liberal with simplified administrative formalities, has so far engaged your financial responsibility for all of your personal assets.

To avoid this risk, it was necessary to opt for its protective variant: the individual company with limited liability (EIRL), which made it possible to answer for its professional debts only on the patrimony of assignment devolved to the company.

However, this option was rarely used in practice.

A unique protective status

The law of February 14, 2022 in favor of the self-employed has simplified the situation

.

Exit the EIRL and make way for a unique and better protected individual entrepreneur status since his personal assets are now unseizable by professional creditors.

A real step forward when we know that 848,200 companies were created in 2020, including 82,200 under the status of EI.

Similarly, it will now be easier to develop one's activity to move from the status of individual entrepreneur to that of a company such as a one-person limited liability company (EURL), a one-person simplified joint-stock company (SASU) or even the simplified joint stock company (SAS).

All of them make it possible to start without any partner and limit the financial responsibility of the entrepreneur to the amount of his contributions to the company.

On the other hand, they involve heavier creative processes.

Although it is no longer possible to choose the EIRL since February 16, 2022, professionals already practicing under this status continue their activities under the same conditions.

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The reference site

Do you want to go freelance and set up your own company?

The public authorities have put a web portal online to guide you: Entreprendre.Service-Public.fr.

This official administrative information site for companies is intended to be the reference entry point for accessing all the resources, information and tools dedicated to the self-employed, managers of VSEs and SMEs.

Bringing together reliable, up-to-date and free resources, this platform is built around the six main stages of entrepreneurship: "I create", "I take over", "I manage", "I develop", "I close" and "I transmit”.

Advice, online procedures, downloadable administrative forms, document templates and other simulators are available there.

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