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Umbrella company: Choosing the right legal status for your business

The current period, punctuated by the COVID-19 epidemic and the financial crisis, can, for some people, be an opportunity to start their own business. The problem being that the number of legal statuses available does not help with choice. This file should help you decide and choose the best option for your future activity.

This practical sheet is not intended to give you exactly which status corresponds to your project, but rather to direct you towards one or more options corresponding to the characteristics of your project.

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Once you have taken the time to think about the different themes covered in the second paragraph of this article, you should have an overview of what legal status might best suit your business. The final choice remains your own decision but know that you can also call on a professional to guide you in this difficult choice.

Make the difficult choice of a legal status suited to your business

Opting for legal status is the first step but also the most complex for your project business creation. The latter must indeed take into account several points:

  • Affinity regarding the most appropriate social regime to your future business,
  • Affinity regarding the most suitable social status to the future leader,
  • Affinity regarding intrinsic characteristics of the project : number of partners, type and nature of the activity…
  • Affinity regarding perspectives of evolution future and potentially planned (integration of new partners, investors, etc.)…

[/isgg]choice of legal status for your businesschoice of legal status for your business therefore depends on many points. Take your time to establish these.

In the remainder of this article, we will take a look at the problems that we are likely to encounter most often and on how to approach them when choosing the legal status of your business.

How many partners will your company have?

That question, although relatively simple, is nevertheless the most important concerning the choice of the legal status of your future company.

If the creation of a business concerns several people, meaning by that, from two partners, you will absolutely need opt for the creation of a company. Generally speaking, the statutes of SARL and SAS are the most requested concerning the Commercial activities. For the liberal and real estate activities, there civil society is one of the best possible choices. Although rarer, SA or SNC statuses may be an option to consider if your project fits into this.

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In case you are the only partner to your project business creation, you will have the choice between several forms of so-called individual company status (sole proprietorship, EIRL and self-employed). Depending on the scale of your project, you can also choose a single-member company status EURL or SASU.

Do you want to protect your private assets?

If you have personal assets in your name such as real estate, it is clearly advised to move towards a legal status which will give you the possibility of limiting your liability In case of problem. This is a choice criteria and who should to weight a lot in the balance moreover, if your activity exposes you to risks, whatever they may be.

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In this case, the legal forms that allow you to protect your assets and of limit your liability are there SARL, EURL, SAS, SASU, EIRL and SA.

What are the possible status options for your future business?

The law may limit certain choices regarding legal status, this is particularly the case for certain professional activities subject to specific obligations as for example, the drinking establishments or tobacco bars, which can only be created in the form ofsole proprietorship or SNC.

Are any specific features planned?

Certain arrangements, financial projects, umbrella company, legal or tax can also limit your choice about the legal status of your business. For example, if you are considering creating a holding, the business cannot be in a form other than that of the company. Depending on the arrangement you are considering for your business project, the latter may therefore limit the different legal statuses possible.

How do you plan to pay out your income?

For’opt for the best legal status for your business, it is imperative to plan in advance how do you want to be compensated. Several options are available to you: get paid directly through your company or opt instead for the dividend option.

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Forentrepreneurs who already have an income consequently regular and social protection in addition to their future activity, thedividend option is clearly the best nowadays. For example, if you are an employee or paid business manager or an entrepreneur, who, in the event that he leaves a job search process, little benefit from the ARE for a period of up to 3 years at full rate.

If you opt for the dividend payment option, favor a legal status which will allow you the distribution of dividends but also to avoid social charges on the latter.

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For that, the option of SAS, SASU and SARL with minority management as well as SA and EURL can be good options.

What will be the operating environment of your future business?

The different points concerning the operation of your future business are important regarding the choice of your future legal status. This is a criterion to take into account in the case where your project concerns several partners..

Among these choices, the SARL and SNC offer a “restricted” mode of operation and the SAS and SA companies which offer more flexibility regarding the choice and mode of operation.

This characteristic most often opposes the choice of SAS or SARL which are the two most popular legal statuses in this case.


The advantage of the SAS is what it offers to business creators, great freedom regarding its operation. This freedom can, however, prove to be a disadvantage in certain cases.

The SARL has a limited status, in the sense that it is very regulated by the law and he leaves very little freedom for business creators as to its mode of operation.

The relationship between the manager’s choice of social status and the legal status of the company

Depending on the option you choose but also, depending on the percentage of capital allocated, discover the social status that will be attributed to you:

For EIRLs, individual entrepreneurs, majority managers of SARL, sole associated managers of EURL and SNC, you will be assimilated to the status of TNS (self-employed worker)

For SA managers, minority or equal managers of SARL, non-associated managers of EURL and directors of SAS, you will have the status of employee.

Depending on the type of status you wish to obtain, you will therefore be limited as to the legal choice of your future business.

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To conclude regarding the choice of the legal status of your company

After reading the different possibilities that we discuss in this article, you should already have a more general idea of ​​the direction to take.

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Be careful, however, because this choice is essential for your success and therefore, if you have the possibility, do not hesitate to seek support from a professional who will certainly be able to guide you towards the ideal choice for your future activity. professional.