Best option for high turnover, low profit business?

leukeleu

6 Jul 2010 at 16:03 · Viewed 1429 times

I am registered auto-entrepreneur and have an on line business selling very high end parasols. We are just starting out but our trouble is the parasols are very expensive and as such we (hope to) have a high turnover but actual profit will be much lower, for example if we reached the 80,000 limit our situation would be this:

Based on our sales 12% Cotisations +1% income tax
Turnover €80,000
Profit (approx 30%): €24,000
Tax to pay (estimate): €10,400
Take home: €13,600

This makes my tax paid on profit about 43% because of the relatively small profit margins which we have to adopt to be competitive. Is there a better option for being registered in France with high turnover but low profit. I saw in an old thread that even registering EURL you can claim expenses but pay 46% on the profit which is the same as we will be doing with auto-entrepreneur scheme.

Answered