Switching from Micro-Entrepreneur to a Company (EI, EURL, SASU) in France: VAT Deadlines & Key Steps for 2026

Switching from a micro-entrepreneur (auto-entrepreneur) to a formal company structure like EI (Entreprise Individuelle), EURL, or SASU is a significant step for freelancers and small business owners in France. Whether you’re exceeding turnover thresholds, seeking liability protection, or planning for growth, understanding the process, VAT deadlines, and legal implications is crucial—especially in 2026, with evolving regulations like Factur-X compliance and VAT declaration changes. This guide breaks down everything you need to know to make an informed decision and stay compliant.

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Why Switch from Micro-Entrepreneur to a Company?

The micro-entrepreneur regime is ideal for starting a business due to its simplicity and low administrative burden. However, as your business grows, you may encounter limitations that make switching to a company structure necessary. Here’s when and why you should consider making the move:

1. Turnover Thresholds in 2026

In France, the micro-entrepreneur regime has strict turnover limits:

• Commercial activities (BIC): €203,100
• Services (BNC): €83,600
• VAT exemption threshold: €37,500 (services) with a tolerance threshold of €41,250.

If you exceed these thresholds for two consecutive years, you’ll automatically exit the micro-entrepreneur regime on January 1 of the following year. For example, if you exceed the limits in 2024 and 2025, you’ll switch to the real regime (EI) or must create a company (EURL/SASU) by January 1, 2026.

2. Key Reasons to Switch

• Liability Protection: EURL and SASU limit your liability to the company’s assets, protecting your personal wealth.
• Tax Optimization: Companies can deduct business expenses, choose between personal (IR) or corporate tax (IS), and optimize social contributions.
• Business Growth: Raising funds, hiring employees, or expanding internationally is easier with a formal company structure.
• Professional Image: Some clients or partners prefer working with registered companies rather than micro-entrepreneurs.

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Choosing the Right Legal Structure: EI, EURL, or SASU?

Once you’ve decided to switch, the next step is choosing the right legal structure. Each option has distinct advantages and drawbacks, depending on your business goals, tax preferences, and administrative capacity.

Structure	Taxation	Social Regime	Liability	Compliance	Best For
EI (Real)	Personal income tax (IR)	Self-employed (TNS)	Limited (since 2022)	Simplified bookkeeping	Freelancers with moderate growth
EURL	IR or corporate tax (IS)	Self-employed (TNS)	Limited to contributions	Full accounting required	Stable businesses, asset protection
SASU	Corporate tax (IS)	Salaried (assimilé salarié)	Limited to contributions	Full accounting required	High-growth startups, scalability

1. Entreprise Individuelle (EI) – Real Regime

Switching to EI under the real regime is the simplest option if you want to keep your business structure but move away from the micro-entrepreneur regime. Here’s what you need to know:

• No new company creation: Your SIRET number remains the same.
• Taxation: You’ll pay personal income tax (IR) on your business profits, but you can deduct actual business expenses (unlike the micro-entrepreneur regime).
• Social contributions: You’ll remain under the TNS (Travailleur Non Salarié) regime, with lower contributions than the SASU’s assimilated-salaried status.
• Liability: Since 2022, your personal assets are protected from business debts, except in cases of gross negligence.

How to switch: Notify the URSSAF or tax authorities of your exit from the micro-entrepreneur regime. The change takes effect on January 1 of the following year.

2. EURL (Entreprise Unipersonnelle à Responsabilité Limitée)

An EURL is a single-member limited liability company, offering a balance between simplicity and protection. It’s ideal if you want to:

• Protect your personal assets from business debts.
• Choose between IR or IS taxation: By default, EURLs are taxed under IR, but you can opt for corporate tax (IS) if it’s more advantageous.
• Keep social contributions low: As a TNS (self-employed), your contributions are lower than in a SASU.

Drawbacks:

• Accounting requirements: You must maintain full accounting records, including a balance sheet and income statement.
• Less flexibility: Transferring shares or raising funds is more complex than in a SASU.

How to create an EURL:

1. Draft the articles of association (statuts).
2. Deposit the share capital (minimum €1, but €100–€1,000 is common).
3. Publish a legal notice in a journal of legal announcements (coût: ~€142 HT in 2026).
4. Register with the RCS (Registre du Commerce et des Sociétés).

3. SASU (Société par Actions Simplifiée Unipersonnelle)

A SASU is a single-member simplified joint-stock company, offering the most flexibility for growth. It’s the best choice if you:

• Plan to raise funds or take on investors in the future.
• Want to pay yourself a salary + dividends for tax optimization.
• Prefer the assimilated-salaried social regime, which offers better unemployment benefits (though contributions are higher).

Drawbacks:

• Higher social contributions: As an assimilated-salaried director, you’ll pay ~45–50% in social charges on your salary (vs. ~40% for TNS in an EURL).
• Complex accounting: Full accounting is mandatory, and you’ll need an accountant for compliance.

How to create a SASU: The process is similar to an EURL, but the articles of association are more flexible. You can:

• Set your own rules for share transfers, decision-making, and profit distribution.
• Issue dividends (taxed at a flat rate of 30% under the PFU (Prélèvement Forfaitaire Unique)).

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VAT Deadlines for Freelancers and Small Businesses in 2026

Once you switch to a company, you’ll likely need to declare and pay VAT (unless you remain under the VAT exemption threshold). France has two main VAT regimes for small businesses: the simplified regime (réel simplifié) and the normal regime (réel normal). Here’s what you need to know about deadlines and obligations in 2026.

1. VAT Exemption (Franchise en Base de TVA)

If your turnover remains below the following thresholds, you’re exempt from VAT and don’t need to file declarations:

• Services (BNC): €37,500 (with a tolerance threshold of €41,250).
• Commercial activities (BIC): €101,000.

Note: If you exceed these thresholds, you’ll automatically switch to the real regime and must start declaring VAT.

2. Simplified VAT Regime (Réel Simplifié – CA12)

If your turnover is between the VAT exemption threshold and €254,000 (services) or €840,000 (commercial), you’ll fall under the simplified regime. Here’s how it works:

• Annual declaration (CA12): You must file a single annual VAT return (form CA12 or CA12E) within 3 months of your fiscal year-end.
• Two installments: You’ll pay two advance payments in July and December, based on the previous year’s VAT liability:
  • July installment: 55% of the previous year’s VAT (line 57 of the CA12).
  • December installment: 40% of the same amount.

Example: If your 2025 VAT liability was €10,000, you’ll pay:

• €5,500 in July 2026 (55% of €10,000).
• €4,000 in December 2026 (40% of €10,000).

3. Normal VAT Regime (Réel Normal – CA3)

If your turnover exceeds €254,000 (services) or €840,000 (commercial), you’ll fall under the normal regime and must file monthly VAT declarations (CA3). Here’s the process:

• Declaration period: You must file your VAT return between the 17th and 25th of the month following the declaration period.
  • Example: For July 2026, file between August 17 and 25, 2026.
• Payment: VAT is due at the same time as the declaration and can be paid via SEPA direct debit or one-time online payment.

Penalties for late filing:

• 5% penalty for late declarations.
• 0.2% interest per month on late payments.

4. Factur-X Compliance in 2026

France is rolling out mandatory electronic invoicing in phases:

• September 1, 2026: All businesses must receive electronic invoices (Factur-X format).
• September 1, 2027: All businesses must issue electronic invoices.

What is Factur-X? Factur-X is a hybrid invoice format combining a PDF/A-3b (human-readable) and an XML file (machine-readable). It ensures compliance with the DGFiP (French tax authorities) and the Public Invoicing Portal (PPF).

How to comply:

• Use invoicing software that supports Factur-X 2026 compliance, such as Factur-X 2026 compliance, which automatically generates and submits compliant invoices to the PPF.
• Ensure your invoices include mandatory fields like SIRET, VAT number, and payment terms.

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Step-by-Step Guide to Switching from Micro-Entrepreneur to a Company

Ready to make the switch? Follow these steps to ensure a smooth transition:

1. Assess Your Situation

• Check your turnover: Have you exceeded the micro-entrepreneur thresholds for two consecutive years?
• Evaluate your needs: Do you need liability protection, tax optimization, or growth flexibility?
• Consult an accountant: A professional can help you choose between EI, EURL, or SASU based on your financial situation.

2. Choose Your Legal Structure

• EI (Real Regime): Best for freelancers who want simplicity and don’t need liability protection.
• EURL: Best for stable businesses that want liability protection and lower social contributions.
• SASU: Best for high-growth startups or businesses planning to raise funds.

3. Prepare the Required Documents

For EURL/SASU, you’ll need:

• Articles of association (statuts): Drafted by a lawyer or using a template.
• Proof of capital deposit: A bank certificate showing the share capital has been deposited.
• Legal notice publication: Proof of publication in a journal of legal announcements.
• Registration form (M0): Filed with the RCS (Registre du Commerce et des Sociétés).

For EI (Real Regime), you’ll need:

• Notification of exit from micro-entrepreneur regime: Filed via your URSSAF or impots.gouv.fr account.

4. Register Your Company

• EURL/SASU: Submit your documents to the RCS via the Guichet Unique (one-stop shop for business registration).
• EI (Real Regime): No registration is needed; the change takes effect automatically on January 1 of the following year.

5. Transfer Your Business Assets

If you’re switching to an EURL or SASU, you’ll need to transfer your business assets (clients, equipment, contracts) to the new company. This can be done via:

• Asset contribution (apport en nature): Transferring ownership of assets to the company in exchange for shares.
• Business sale (cession de fonds de commerce): Selling your micro-entrepreneur business to the new company.

6. Update Your Invoicing and Accounting

• Switch to compliant invoicing: Ensure your invoices meet Factur-X 2026 requirements and include all mandatory fields.
• Set up accounting software: Use tools that support VAT declarations, expense tracking, and accounting exports for seamless compliance.
• Schedule VAT deadlines: Mark your calendar for monthly (CA3) or annual (CA12) declarations to avoid penalties.

7. Notify Your Clients and Partners

• Update your contracts: Inform clients of your new legal structure and update your SIRET number if applicable.
• Update your website and invoices: Ensure your new company name, SIRET, and VAT number are visible.

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Common Mistakes to Avoid

Switching from a micro-entrepreneur to a company is a big step, and mistakes can be costly. Here are the most common pitfalls and how to avoid them:

1. Missing VAT Deadlines

• Problem: Late VAT declarations or payments result in penalties (5%) and interest (0.2% per month).
• Solution: Use automated reminders or invoicing software with built-in VAT tracking to stay on top of deadlines.

2. Choosing the Wrong Legal Structure

• Problem: Selecting EURL when SASU would be better (or vice versa) can lead to higher taxes or unnecessary complexity.
• Solution: Consult an accountant or legal advisor to evaluate your options based on your business goals.

3. Ignoring Factur-X Compliance

• Problem: Non-compliant invoices can lead to fines or rejected VAT deductions.
• Solution: Use invoicing software that supports Factur-X 2026 compliance to ensure your invoices meet DGFiP requirements.

4. Forgetting to Transfer Business Assets

• Problem: If you don’t properly transfer your clients, contracts, or equipment to the new company, you may face legal or tax issues.
• Solution: Work with a lawyer or accountant to ensure a smooth transfer via asset contribution or business sale.

5. Underestimating Accounting Requirements

• Problem: EURL and SASU require full accounting, including balance sheets and income statements, which can be overwhelming without the right tools.
• Solution: Use accounting software that simplifies bookkeeping and offers accounting exports for your accountant.

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How jefacturebien.fr Can Help

Switching from a micro-entrepreneur to a company comes with new administrative and compliance challenges, but the right tools can simplify the process. jefacturebien.fr offers features designed to help freelancers and small businesses manage their transition smoothly:

• Factur-X 2026 compliance: Ensure your invoices meet the latest electronic invoicing requirements with Factur-X 2026 compliance, which automatically generates and submits compliant invoices to the Public Invoicing Portal.
• Accounting exports: Simplify your bookkeeping with accounting exports in FEC, CSV, Excel, or JSON formats, making it easy to share data with your accountant or import into your accounting software.
• VAT tracking and reminders: Stay on top of your VAT deadlines with automated reminders and built-in compliance checks.

For more details on how jefacturebien.fr can support your business growth, visit the features page.

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Conclusion: Take Action Today

Switching from a micro-entrepreneur to a company (EI, EURL, or SASU) is a strategic move that can protect your assets, optimize taxes, and fuel growth. However, the process requires careful planning, especially with VAT deadlines and Factur-X compliance in 2026. Here’s what to do next:

1. Assess your turnover: Check if you’ve exceeded the micro-entrepreneur thresholds for two consecutive years.
2. Choose your legal structure: Decide between EI, EURL, or SASU based on your business needs.
3. Consult a professional: Work with an accountant or lawyer to ensure a smooth transition.
4. Update your tools: Use invoicing and accounting software that supports VAT compliance and Factur-X 2026 requirements.

By taking these steps, you’ll position your business for long-term success while staying compliant with French regulations. Start planning today—your future self will thank you!