EI, EURL, or SASU: Which Legal Structure is Best for Freelancers in France (2026)?

Choosing the right legal structure is one of the most critical decisions for freelancers and small business owners in France. Whether you’re launching a new venture or reassessing your current setup, understanding the differences between EI (Entreprise Individuelle), EURL (Entreprise Unipersonnelle à Responsabilité Limitée), and SASU (Société par Actions Simplifiée Unipersonnelle) is essential. This 2026 guide compares liability, taxation, social security, and VAT deadlines to help you make an informed choice tailored to your business needs and growth plans.

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Why Does Your Legal Structure Matter?

Your legal structure impacts:

• Liability: How much of your personal assets are at risk if your business faces financial difficulties.
• Taxation: Whether your income is taxed under personal income tax (IR) or corporate tax (IS), and how much you’ll pay.
• Social security: Your coverage for health, retirement, and unemployment, as well as the cost of contributions.
• Administrative burden: The complexity of accounting, reporting, and compliance requirements.
• Growth potential: Your ability to attract investors, secure loans, or scale your business.

For freelancers, the choice often comes down to balancing simplicity, protection, and long-term flexibility. Let’s dive into the specifics of each structure.

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EI (Entreprise Individuelle): Simplicity with Trade-offs

What is EI?

EI is the simplest legal structure for freelancers in France. It doesn’t create a separate legal entity, meaning your business and personal finances are legally intertwined. However, since 2022, freelancers can opt for asset protection, shielding their personal property from business debts (except in cases of gross negligence).

Key Features of EI in 2026

• Liability: Unlimited by default, but personal assets can be protected with the 2022 reform.
• Taxation: By default, profits are taxed under personal income tax (IR). You can opt for corporate tax (IS) if you meet certain conditions (e.g., real tax regime).
• Social security: You’re classified as a self-employed worker (TNS) under the Sécurité Sociale des Indépendants (SSI), with lower contributions but less comprehensive coverage than salaried workers.
• Accounting: Simplified if you’re under the micro-entrepreneur regime (no VAT if revenue stays below thresholds). Otherwise, you must keep full accounts.
• Formalities: Minimal—just register with the Centre de Formalités des Entreprises (CFE) or online via guichet-entreprises.fr.

Pros and Cons of EI

✅ Pros:

• No capital requirements.
• No need to draft statutes or publish legal announcements.
• Low administrative burden (especially under the micro-entrepreneur regime).
• Flexibility to switch to IS taxation if needed.

❌ Cons:

• Limited liability protection (unless you opt for the 2022 asset protection).
• Less credibility with banks, clients, or investors compared to incorporated structures.
• Social security coverage is less comprehensive than for salaried workers.

Who Should Choose EI?

EI is ideal for:

• Freelancers just starting out with low revenue.
• Those who prioritize simplicity and minimal paperwork.
• Businesses with low financial risk (e.g., consulting, creative services).

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EURL: A Middle Ground with Limited Liability

What is EURL?

EURL is a single-member limited liability company, meaning it’s a separate legal entity from its owner. This structure offers liability protection while maintaining some of the simplicity of EI.

Key Features of EURL in 2026

• Liability: Limited to your contributions (unless you’ve committed management errors).
• Taxation: By default, profits are taxed under personal income tax (IR). You can opt for corporate tax (IS), but this choice is irrevocable.
• Social security:
  • If you’re the majority manager, you’re classified as a TNS (SSI), with lower contributions but less coverage.
  • If you’re a minority or equal manager, you’re classified as an assimilated employee under the general social security system, with better coverage but higher contributions.
• Accounting: Full accounting is mandatory, including annual financial statements filed with the greffe du tribunal de commerce.
• Formalities: Requires drafting statutes, publishing a legal announcement, and registering with the RCS (Registre du Commerce et des Sociétés).

Pros and Cons of EURL

✅ Pros:

• Limited liability protects your personal assets.
• Flexibility to choose between IR and IS taxation.
• More credibility than EI for clients and banks.
• Easier to transfer or sell the business (via share transfers).

❌ Cons:

• Higher administrative burden (statutes, accounting, annual filings).
• Social security costs can be high if you’re an assimilated employee.
• Less flexibility in profit distribution compared to SASU.

Who Should Choose EURL?

EURL is a good fit for:

• Freelancers with moderate revenue who want liability protection.
• Those who may need to switch to IS taxation later.
• Businesses with some financial risk (e.g., e-commerce, small-scale manufacturing).

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SASU: Flexibility and Social Security Benefits

What is SASU?

SASU is a single-member simplified joint-stock company, offering the most flexibility among the three structures. It’s a separate legal entity, providing strong liability protection and credibility.

Key Features of SASU in 2026

• Liability: Limited to your contributions.
• Taxation: By default, profits are taxed under corporate tax (IS). You can opt for personal income tax (IR) for up to 5 years under certain conditions.
• Social security: The president is classified as an assimilated employee, with full social security coverage (including unemployment benefits) but higher contributions.
• Accounting: Full accounting is mandatory, with annual financial statements filed with the greffe.
• Formalities: Requires drafting statutes (highly flexible), publishing a legal announcement, and registering with the RCS.

Pros and Cons of SASU

✅ Pros:

• Limited liability and strong asset protection.
• Flexible statutes allow you to tailor governance to your needs.
• Social security coverage is comprehensive (similar to salaried employees).
• Easier to raise capital or attract investors.
• Profit distribution via dividends is tax-efficient (30% flat tax under the PFU).

❌ Cons:

• Higher administrative and accounting costs.
• Mandatory IS taxation (unless you opt for IR for 5 years).
• Social security contributions are higher than for TNS.

Who Should Choose SASU?

SASU is ideal for:

• Freelancers planning to grow their business or seek investment.
• Those who want comprehensive social security coverage.
• Businesses with higher revenue or financial risk.
• Freelancers who want to optimize taxes through dividends.

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VAT Deadlines for Freelancers in 2026

VAT obligations vary depending on your revenue and legal structure. Here’s what you need to know for 2026:

VAT Regimes for Freelancers

1. VAT Exemption (Franchise en Base):

   • Applies if your revenue is below:
     • €94,300 for commercial activities or accommodation.
     • €36,500 for services or liberal professions.
   • No VAT declaration or payment required.
   • You can opt into VAT starting June 1, 2026, if you expect to exceed the thresholds.

2. Simplified VAT Regime (Régime Simplifié):

   • Annual declaration (CA12): Due by May 5, 2026, for the 2025 fiscal year.
   • Quarterly prepayments (3514-SD): Due on May 5, August 5, November 5, and February 5.

3. Normal VAT Regime (Régime Réel Normal):

   • Monthly declarations (CA3): Due between the 15th and 24th of the following month (e.g., May 2026 VAT is due between June 15-24, 2026).
   • Quarterly declarations: Due between the 15th and 24th of the month following the quarter’s end (e.g., Q1 2026 VAT is due between April 15-24, 2026).

Special Cases

• If your fiscal year doesn’t align with the calendar year, your VAT declaration is due within 3 months of the fiscal year-end.
• Micro-entrepreneurs must declare revenue monthly or quarterly (depending on their choice) but are exempt from VAT unless they opt in.

Key VAT Deadlines for 2026

Regime	Deadline	Form
VAT Exemption	No declaration	-
Simplified (Annual)	May 5, 2026	CA12
Simplified (Quarterly)	May 5, August 5, November 5, February 5	3514-SD
Normal (Monthly)	15-24 of the following month	CA3
Normal (Quarterly)	15-24 of the following month	CA3

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Which Legal Structure is Right for You?

Choosing between EI, EURL, and SASU depends on your business goals, revenue, and risk tolerance. Here’s a quick decision guide:

Your Profile	Recommended Structure	VAT Regime	Key Deadlines
Starting out, low revenue	EI (micro-entrepreneur)	VAT Exemption	None
Moderate revenue, need liability protection	EURL	Simplified	CA12 by May 5, 2026
High revenue, growth plans	SASU	Normal	CA3 monthly (15-24 of following month)
Need social security coverage	SASU	Normal	CA3 monthly
Optimizing taxes via dividends	SASU	Normal	CA3 monthly + IS declaration

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How to Manage Your Invoicing and Compliance

Once you’ve chosen your legal structure, managing invoicing and compliance efficiently is crucial. Tools like online signable quotes can streamline your workflow by allowing clients to sign quotes electronically, eliminating the need for printing or scanning. This not only saves time but also ensures legal traceability for your agreements.

For freelancers juggling multiple clients or projects, keeping track of payments can be challenging. Late payments can disrupt your cash flow, so setting up automatic payment reminders can help you stay on top of overdue invoices without the awkwardness of manual follow-ups. These reminders can be personalized and scheduled before or after the due date, ensuring you get paid faster while maintaining professional relationships.

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How jefacturebien.fr Can Help

Choosing the right legal structure is just the first step—managing your invoicing, compliance, and cash flow efficiently is key to long-term success. jefacturebien.fr offers tools tailored to freelancers and small businesses, including:

• Online signable quotes to streamline client agreements.
• Automatic payment reminders to improve cash flow.

Explore all our features to simplify your administrative tasks and focus on growing your business: jefacturebien.fr/features.

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Conclusion: Take Action Today

Your legal structure is the foundation of your business, so take the time to weigh the pros and cons of EI, EURL, and SASU. Consider your revenue, growth plans, and risk tolerance before making a decision. If you’re unsure, consult an accountant or legal expert to tailor the choice to your specific situation.

Once you’ve chosen your structure, set up systems to manage invoicing, payments, and compliance efficiently. Tools like jefacturebien.fr can help you automate administrative tasks, so you can focus on what you do best—running your business.