Best company structure for couple setting up artisan business

clint
· Viewed 283 times

G’day Valerie,
I’ve managed to totally fry my brain and web browser and need your help in putting out the fire!
EI, EURL, SASU, SARL, or family SARL? Gees! Why soooo complicated!

My wife and I (no other dependants) are planning to emigrate to France next year and set up an artisan based business.
Designing and making bespoke furniture and lighting.
We will be in the fortunate position of not requiring any external financing.
We will both be working full time on the business.
We do not anticipate taking on employees.
We predict our investment into the business will be E80k (tools, setup workshop, marketing, etc.) in the first 2 years with minimal sales/income.
Year 3 prediction is 100% target capacity, turnover E120k, costs E50k.

The problem I face right now is deciding on the best business structure.
1. To minimise income and social taxes.
2. Allow us to be able to gradually draw back (say E10k/yr) the monies we have invested without incurring taxes/deductions.
3. Be able to offset the initial purchase of tools etc. against profits.
4. If necessary, the business can be easily split into 2 separate entities; one on furniture, the other on lights. I have no information of the possibility of this option or the pros and cons of such a setup, but thought it may be worth considering for EI or possibly EURL?
We do not need a regular wage/income if dividends provide a significant improvement in tax/deductions.

So, the questions that have caused the fire:
a. The simple structure of an EI has appeal and appears to be a reasonably tax efficient option. But I’m unclear on matters 2, 3 & 4 above.
b. I have read some limited info on ‘Family SARL’. Is this a better option for us over SARL? Or can one of these go in the bin?
c. EURL, SASU or SARL all appear to be contestants, each with their various options, pros and cons.

I have played with an on-line tool with some indicators coming out but need a bit more guidance. (https://mycompanyinfrance.urssaf.fr/calculators/social-scheme-comparaison).

I have a French accountancy firm ready to run some financial calcs but need more information before directing them on our preferred structure. 
We are aware that there is more to the selection of a business structure other than the bottom line, but we need to get a good understanding of the finance side before considering the other factors.

3 replies so far...
Log in About membership