Are you a business creator? Are you hesitating between SARL, EURL, or SAS (or SASU)? To choose, you need to understand the 3 main differences in terms of expenses related to remuneration and dividends. Insights from our experts.
1st difference between SARL, EURL, or SAS (or SASU): amount of social security contributions to be paid on the administrator’s remuneration
The amount of social security contributions to be paid on the manager’s remuneration varies depending on whether the company is a SARL, an EURL, or a SASU. This is often the criterion used to choose between SARL or SAS.
- In SARL (or EURL), the manager holding more than half of the capital (majority manager) has the status of independent (TNS) and pays social security contributions ranging from 35% to 55% of their net profit.
- In SAS (or SASU), the manager, president, or administrator has the status of employee equivalent and pays social security contributions of 50 to 70% of their net remuneration.
In general, the main advantage of SARL compared to SAS is that the amount of social security contributions paid by the farmer on their remuneration is lower, especially if the remuneration is substantial.
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If your priority is to maximize your immediate remuneration:
- Choose SAS/SASU if you plan to pay less than €25,000 (employee equivalent status) in the future.
- Choose SARL/EURL if you plan to pay fees exceeding €25,000 (independent status).
Note: Your priority is not necessarily the level of your immediate remuneration. It may be the level of your “deferred reward,” for example, your pension. Especially if you are over 45 years old.
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Don’t hesitate to consult an expert who, through a “career assessment,” can conduct a personal study on your situation and priorities.
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2nd difference between SARL, EURL, or SAS (or SASU): the amount of contributions and retirement benefits
In SAS (or SASU), managers contribute to the same pension funds as employees. Thus, the amount of social security contributions is often higher than in LLC (or EURL).
But the benefits paid at retirement are also greater. Equal pay, a SAS president therefore accrues more pension rights than a SARL administrator.
3rd difference between SARL, EURL, or SAS (or SASU): the dividends of the SARL manager are subject to social contributions
The finance law of 2013 introduced a mechanism for the subjection of dividends to SARL managers to social security contributions.
The objective is, of course, to tax certain dividend payments as remuneration. Especially those resulting from tax optimization between payroll payments or dividends.
Since January 1, 2013, certain dividends paid in LLC are subject to social contributions as salaries.
However, this provision does not apply in SAS. This means that you can still benefit from the advantages of arbitrage by choosing SAS rewards and dividends at the end of the fiscal year.
For your information, this type of arbitrage is generally possible if the amount to be distributed (before debit) is at least €150,000.
- If you want to benefit from a better pension, choose SAS (or SASU).
- If you prefer the minimum contribution to government agencies, to make your own pension, choose SARL.
- If you plan to distribute dividends and your due amount exceeds €150,000, choose SAS.
The conclusion of our auditors on choosing between SAS and SARL
To choose your legal status, you must first identify your priority:
- If you want to have a “good pension,” choose DeluchtsLuis.
- To achieve maximum immediate profit, choose SARL instead, unless you also want to distribute dividends and your distributable amount exceeds €150,000.
It is a trend here. But your situation may be special, and sometimes many parameters need to be taken into account.
Don’t hesitate to contact accountants or lawyers to conduct a personalized study and compare the most appropriate legal forms for you.
Source: backupyourbrain.fr