What Is a Micro-Entrepreneur and Should You Go for It? 🌱

The micro-entrepreneur status (also known as auto-entrepreneur) is the simplest way to start a business in France. It’s designed for small projects or side hustles, with minimal paperwork and low overhead.

Here’s the Deal:

You don’t need a lot of money to start—just register online and you’re good to go.
You pay a fixed percentage of your revenue in social contributions.
However, you can’t deduct expenses, so if you have a lot of business costs, this may not be the best option.

Concrete Example:

Lucie is a 19-year-old photographer earning €30,000 per year. She pays a fixed 22% rate on her revenue, meaning she owes €6,600 in social contributions.

Even if she spends €5,000 on a new camera or €2,000 on travel expenses, she can’t deduct those costs.

💡 Why This Can Be Limiting: If you have large expenses, your net profit will shrink fast.

Taxes in Micro-Entrepreneur Status:

Simple and straightforward: You pay a fixed rate on your revenue (22% for services, 12.3% for goods).
No complicated tax filings: But you can’t take advantage of deductions or split income into dividends.

Liability and Risk:

Here’s where things get risky: Your personal assets are not fully protected. If you have debts or legal issues, they can potentially affect your personal savings or belongings.

Social Protection:

✅ Access to basic health coverage (doctor visits, hospital stays, medications), but reimbursements are limited. A private insurance (mutuelle) is recommended for better protection.
✅ Small retirement contributions, based on your total revenue. The pension you’ll receive is usually lower than in other structures.
❌ No unemployment coverage: If you stop working, you won’t have financial support.

💡 Candosa Tip: Micro-entrepreneur status is great for testing a business or running a side hustle, but if you’re serious about scaling, SASU or EURL will give you better tax benefits and protections.