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

Choosing the right legal status is one of the first critical decisions for freelancers and small business owners in France. In 2026, the three most common options—Entreprise Individuelle (EI), EURL, and SASU—each come with distinct advantages and obligations, particularly regarding liability, taxation, social contributions, and VAT compliance. This guide breaks down the key differences to help you make an informed choice, while also highlighting the VAT deadlines you’ll need to meet in 2026.

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Why Does Your Legal Status Matter?

Your legal status determines how your business is taxed, how much you pay in social contributions, and the level of personal liability you face. It also impacts your administrative obligations, such as VAT declarations and accounting requirements. For freelancers, the wrong choice can lead to higher costs, legal risks, or unnecessary complexity. Below, we compare EI, EURL, and SASU across the most critical factors.

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EI, EURL, or SASU: Key Differences in 2026

1. Liability: Protecting Your Personal Assets

• EI (Entreprise Individuelle): As a sole proprietorship, there’s no legal separation between you and your business. Your personal assets (e.g., home, savings) are at risk if your business incurs debts. However, you can protect your primary residence by filing a declaration of unseizability (déclaration d’insaisissabilité) with a notary.

• EURL (Entreprise Unipersonnelle à Responsabilité Limitée): This is a single-member limited liability company. Your liability is limited to the amount you’ve invested in the business, protecting your personal assets from business debts (unless you’ve committed a management fault).

• SASU (Société par Actions Simplifiée Unipersonnelle): Like EURL, SASU limits your liability to your contributions. It’s a popular choice for freelancers who want to reinvest profits or plan to scale their business later.

Takeaway: If protecting your personal assets is a priority, EURL or SASU are the safer choices.

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2. Taxation: IR vs. IS

Your legal status determines whether your business income is taxed under personal income tax (IR) or corporate tax (IS).

• EI: By default, your business income is taxed under IR (progressive rates from 0% to 45%). You can opt for IS, but this is rare for freelancers due to the complexity.

• EURL: By default, EURL is taxed under IS, but you can opt for IR for up to 5 years (transparency option). This is useful if you expect low profits initially, as you’ll only pay personal income tax on your salary and dividends.

• SASU: SASU is always taxed under IS (standard rate of 25% in 2026, with reduced rates for small businesses). You’ll pay personal income tax only on your salary and dividends.

Takeaway: If you expect low profits in the early years, EI or EURL with the IR option may be more tax-efficient. If you plan to reinvest profits or pay yourself a lower salary, SASU’s IS regime could be advantageous.

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3. Social Contributions: TNS vs. Assimilated Employee

Your legal status also determines how you pay social contributions, which can significantly impact your take-home pay.

• EI and EURL (majority manager): You fall under the self-employed regime (TNS), with social contributions calculated on your business income. In 2026, contributions are provisionally calculated on 19% of the annual social security ceiling (€9,131) for the first two years if no income is declared. After that, contributions are typically 45-50% of your taxable income.

• SASU: The president is considered an assimilated employee, meaning you pay social contributions like a salaried employee. This includes ~22% employer contributions and ~15% employee contributions (rates vary based on salary and benefits). While this can be more expensive for high salaries, it offers better social protection (e.g., unemployment benefits, which TNS does not cover).

Takeaway: If you want lower social contributions and don’t need unemployment benefits, EI or EURL may be preferable. If you value social protection and plan to pay yourself a moderate salary, SASU could be a better fit.

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4. Administrative Formalities: Ease of Setup and Compliance

• EI: The simplest and cheapest option. No capital requirement, no statutes to draft, and no legal announcement to publish. You only need to register with the Centre de Formalités des Entreprises (CFE) or online via guichet-entreprises.fr.

• EURL and SASU: Both require drafting statutes, publishing a legal announcement (cost: ~€150-200), and registering with the Registre du Commerce et des Sociétés (RCS). You’ll also need to open a business bank account. While more complex, these structures offer greater flexibility for growth.

Takeaway: If you want to start quickly and keep costs low, EI is the easiest option. If you’re planning to grow or seek investors, EURL or SASU provide a more professional framework.

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VAT Deadlines for Freelancers in 2026

VAT compliance is a critical aspect of running your business, and deadlines vary depending on your regime. Missing a deadline can result in penalties, so it’s essential to stay organized. Here’s what you need to know for 2026:

1. VAT Exemption Thresholds

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

• €83,600 for services and liberal professions (e.g., consultants, freelancers).
• €203,100 for commercial activities (e.g., e-commerce, retail).

Note: Even if you’re exempt, you must still issue invoices without VAT and mention "TVA non applicable, art. 293 B du CGI."

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2. Simplified VAT Regime (Régime Réel Simplifié)

If your turnover exceeds the exemption thresholds but is below €254,000 for services or €818,000 for commercial activities, you fall under the simplified regime. Here’s how it works:

• Annual Declaration (CA12): You must file an annual VAT return (form CA12) by May 5, 2026, for the 2025 fiscal year. This declaration reconciles your actual VAT liability with the prepayments you’ve made.

• Semiannual Prepayments: You’ll pay two prepayments in 2026:

  • First prepayment: Due by May 5, 2026 (form 3517-S-SD).
  • Second prepayment: Due by November 5, 2026.

Each prepayment is calculated as 55% of your VAT liability from the previous year (or 40% if your turnover is below €34,400 for services or €100,000 for commercial activities).

Tip: If your cash flow is tight, consider using accounting exports to generate a VAT report and plan for these prepayments in advance.

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3. Real Normal VAT Regime (Régime Réel Normal)

If your turnover exceeds the simplified regime thresholds, you must file monthly or quarterly VAT declarations (form 3310-CA3). Here are the deadlines for 2026:

• Monthly Declarations: Due between the 15th and 24th of the following month. For example, your May 2026 VAT declaration must be filed between June 15 and June 24, 2026.

• Quarterly Declarations: Due between the 15th and 24th of the month following the quarter. For example, your Q2 2026 VAT declaration (April-June) must be filed between July 15 and July 24, 2026.

Important: Even if you have no VAT to declare, you must file a nil declaration to avoid penalties.

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4. Key Dates for 2026 VAT Deadlines

Regime	Frequency	Deadline Example (2026)	Form
Simplified	Annual	May 5, 2026 (for 2025)	CA12/CA12E
Simplified	Semiannual	May 5 and November 5, 2026	3517-S-SD
Real Normal (Monthly)	Monthly	15–24 of the following month	3310-CA3
Real Normal (Quarterly)	Quarterly	15–24 of the following month	3310-CA3

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How to Choose Between EI, EURL, and SASU

Now that you understand the key differences, how do you decide which legal status is right for you? Here’s a quick decision guide:

Choose EI if:

• You want the simplest and cheapest option to start.
• You don’t need to protect your personal assets (or you’ve filed a declaration of unseizability).
• You expect low profits and prefer personal income tax (IR).
• You don’t plan to hire employees or seek investors.

Choose EURL if:

• You want limited liability but prefer the self-employed (TNS) regime for social contributions.
• You expect low profits initially and want to opt for personal income tax (IR) for up to 5 years.
• You plan to grow your business but don’t need the flexibility of SASU.

Choose SASU if:

• You want limited liability and prefer assimilated employee status for social contributions.
• You plan to reinvest profits or pay yourself a lower salary to minimize taxes.
• You may seek investors or scale your business in the future.
• You value social protection (e.g., unemployment benefits).

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Common Mistakes to Avoid

1. Ignoring VAT Deadlines: Missing a VAT deadline can result in penalties of 5% of the VAT due (plus 0.2% per month of delay). Use tools like automatic payment reminders to stay on top of deadlines.

2. Choosing a Status Based on Taxes Alone: While taxes are important, don’t overlook liability, social contributions, and administrative costs. For example, SASU may offer tax advantages but comes with higher setup costs.

3. Not Planning for Growth: If you start as an EI but plan to hire employees or seek investors, you’ll eventually need to switch to EURL or SASU. Plan ahead to avoid costly transitions.

4. Forgetting to Separate Personal and Business Finances: Even as an EI, it’s crucial to open a dedicated business bank account to simplify accounting and VAT compliance.

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How jefacturebien.fr Can Help

Managing your business finances, VAT deadlines, and client payments can be overwhelming, especially when you’re juggling multiple responsibilities. jefacturebien.fr offers tools designed to simplify your administrative tasks and ensure compliance:

• Accounting exports: Generate VAT reports, FEC files, or CSV exports in one click to streamline your declarations and share data with your accountant.
• Automatic payment reminders: Schedule personalized email reminders for clients with overdue invoices, improving your cash flow without the awkwardness.

Whether you’re an EI, EURL, or SASU, these features help you stay organized, compliant, and focused on growing your business. Explore all the tools available on our features page.

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Final Thoughts: Take Action Today

Choosing the right legal status is a foundational step for your freelance business in France. While EI offers simplicity, EURL and SASU provide liability protection and tax flexibility. Pair your decision with a solid plan for VAT compliance, and consider using tools like jefacturebien.fr to automate reminders and exports.

If you’re still unsure, consult an accountant or legal expert to tailor your choice to your specific situation. The sooner you decide, the sooner you can focus on what matters most—growing your business.