Alongside the definition of your concept and the search for financing, the choice of legal status is one of the most important stages in the process of launching your restaurant.
EI, EURL, SARL, SA - all these acronyms leave you bewildered? This article will help you get to grips with these names and understand the advantages and disadvantages of each of these legal forms, which will determine your tax regime, your social security system, the liability of your manager(s), etc.
Find out more about the legal form of a restaurant
The legal form or status of a restaurant is the legal framework within which it can be set up. Entrepreneurs can choose between two main options:
- Sole propri etorship: this involves a natural person operating alone in his or her own name to develop an economic activity.
- The creation of a company run by a single partner, as in the case of a one-man limited liability company (EURL), or by several partners, for a limited liability company (SARL), a public limited company (SA), or a simplified joint stock company (SAS), among other options.
Before continuing reading this article, we invite you to ask yourself the following questions:
- Will there be one or more individuals at the helm of the project?
- What type of governance structure do you intend to establish?
- Under which social security scheme do you plan to register?
- Which tax system would you like to adopt?
- What sales do you expect to achieve in the short, medium and long term?
👉 To find out more: 7 steps to a restaurant business plan
The 2 individual shapes
1. The micro-business
Unlike all other legal forms, setting up a microenterprise does not require any bookkeeping. You are, however, required to keep track of your sales in a revenue book, which will be used to calculate your social security contributions. You must also have a bank account dedicated to your professional activity, and not exceed a certain ceiling.
Microenterprise status is both a simple and economical option. It's ideal if you simply intend to test your business, if your investments and expenses are limited, or if this venture is a complementary activity.
2. Sole proprietorship
The sole proprietorship (EI) status is certainly the easiest to adopt for a restaurateur, provided you go it alone and open a small restaurant. This type of company is managed by an individual acting in his or her own name. Formalities and operating rules are extremely simplified. There's no share capital, no partners, no contributions and no articles of association to draw up.
To set up your business, simply register with the CFE and pay a fee ranging from 60 to 185 euros, depending on your activity. This legal status is recommended for entrepreneurs wishing to test their concept andwhose activities require a low level of investment.
To avoid creditors seizing your personal assets in the event of company debts, you'll need to turn to the status of sole proprietorship with limited liability (EIRL).
The 3 corporate forms
1. The one-man limited liability company
The single-member limited liability company (EURL) is an option to consider if you're thinking of going it alone and want to develop your business quickly.
This form of company is relatively similar to the société par actions simplifiées universelles (SASU), but unlike the latter where the entrepreneur is assimilated to an employee, here the manager is a travailleur non-salarié (TNS), a social regime considered less advantageous. If the entrepreneur hires a third party to act as company manager, this person will be treated as an employee.
2. The limited liability company
The limited liability company (société à responsabilité limitée or SARL) is the legal form most often adopted by French entrepreneurs. It closely resembles the EURL, except that the SARL must have a minimum of 2 partners and a maximum of 100. The company is managed by one or more people, who may or may not be partners. If they are partners, their social security status varies according to their level of control of the company. Minority managers are subject to the "assimilés salariés" system, while majority managers are subject to the "TNS" system.
This reassuring legal form is suitable for many companies, but is characterized by a certain rigidity in its operation, governed by the French Commercial Code, which strictly regulates the drafting of articles of association.
3. Simplified joint stock company
A société par actions simplifiées (SAS) is managed by a single president appointed by the partners, who may or may not be one of them.
This status is ideal if you want to create a tailor-made company, as you'll enjoy a certain degree of flexibility when it comes to drafting your articles of association and formulating specific clauses (voting rights at general meetings, dividend distribution, etc.). You won't have this leeway if you opt for a SARL, where most of the rules are dictated by the French Commercial Code.
This legal form lends itself particularly well to large-scale projects such as the creation of a chain .
👉 To find out more: Opening a fast food franchise: the ultimate guide
Advantages and disadvantages of each legal form
Now you're familiar with the different legal forms that exist. Now let's summarize the advantages and disadvantages of each.
-
Did you like these tips? Don't hesitate to consult the articles on our blog to help you develop your business!
Innovorder is the leader in digital solutions for commercial and institutional foodservice. Our team supports restaurateurs in their digital transformation with an all-in-one solution (cash register, kiosk, online ordering, KDS).
