When you have an innovative project with high potential, a start-up is the type of business that suits you best. But in this era of uncertain post-Covid-19 recovery, launching a start-up can be intimidating. To take less risk, you could start your entrepreneurial adventure under the micro-enterprise regime. You can then change your legal status if the situation changes (hopefully positively). The question that arises, in this case, is whether the auto-entrepreneur scheme is suitable for your start-up project.
The obligations of the business founder
The tax and declaration obligations of auto-entrepreneurs are simplified. Nevertheless, it is necessary to declare income, even within the framework of this simplified status. In particular, you will have to report each month or quarter the receipts collected or indicate the amount of the receipts on the personal declaration of the year’s income. You can already start to anticipate your estimate, considering the potential difficulties associated with the recovery.
The monthly or quarterly declaration of collected receipts
By being registered in the micro-enterprise ecosystem, each entrepreneur should declare all of their turnover or receipts collected during a given period. This declaration can then be made after each month or after each quarter, based on the preference. In particular, you will be able to do it online. Subsequently, you will have to pay social security contributions.
The annual declaration requirement
Other entrepreneurs prefer to be taxed at a flat rate or choose the payment in discharge of income tax. In this case, you must indicate the total sum of the receipts collected during the year on a declaration complementary to the annual income report. It will also be necessary to disclose the total amount of capital gains or losses realized during this period.
Another advantage of the micro-enterprise scheme is the possibility of taking advantage of simplified requirements in accounting, which comes in handy in these uncertain times. As a micro-entrepreneur, you don’t have to provide annual accounts or keep accounting books. You just need to have a chronological record of your purchases and receipts.
Your accounting obligations sums up to:
- Keeping a receipt book
- Keeping a register of purchases
- The use of a bank account dedicated to the activity.
The advantages of launching a self-employed start-up
To launch a start-up, the micro-enterprise ecosystem has several advantages: first, the simplified founding of the company, because no formalities are necessary to declare its activity, which makes it particularly fast. In addition, the management is simple; you will be able to fully concentrate on the development of your business since the accounting, and administrative aspects are considerably reduced. You will need it to get everything set up very quickly before the critical holiday season.
No fixed charge when launching: if you do not yet have sales, you will not have to pay any tax. In fact, contributions are made up of a percentage of income. You also won’t have to pay a certified public accountant.