Tax liability when selling equity in French business
phizycat
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I’m a Brit living in France, owning and running an online company. I am a self employed commercant in effect, paying my cotistations in Franceas an Enterprise Individuelle, Regime REEL simplifie. I pay tax on my BIC. I have someone who is interested in buying into the business for which they want a 30% stake, leaving me with 70%. Should I accept this I assume I will have to close the business down and re-register it with us as the two main shareholders. I would appreciate some advice on the following:
- What would be my tax (and/or)cotisations liability on any sum received for the equity?
- I assume I would have to close my current business..? What would be the best options from the perspective of a legal company for the two new shareholders? Can you shed any light on the positives and negatives of these business types?
- Would both shareholders be employees of the new company. My partner is in essence ‘a sleeping partner’ potentially. Would the business have to pay their cotisations etc. for any salary taken?