If you are freelancing or consulting in France, this is usually the first real decision you face — and unlike the SAS-vs-SARL choice for larger ventures, it genuinely depends on how much you expect to earn and how you want to be covered socially.
Micro-entreprise (the regime auto-entrepreneurs operate under) caps annual revenue at €188,700 for sales activities or €77,700 for services — which covers most consultants and freelancers. A SASU has no legal revenue ceiling at all; it can scale to millions without a change of structure. If you are confident you will stay under the services threshold for the foreseeable future, this alone does not force your hand — but if you expect to grow past it, starting as a SASU avoids a disruptive conversion later.
Auto-entrepreneurs pay flat-rate social charges of roughly 12.3% to 21.2% of revenue, depending on the activity — simple, predictable, and low when you are just starting out. A SASU president who takes a salary is instead affiliated with the general Social Security regime, with coverage equivalent to a salaried employee: health insurance, maternity/paternity cover, and AGIRC-ARRCO complementary pension. That coverage costs more in contributions but is meaningfully better if you plan to rely on it long-term.
Micro-entreprise uses a simplified system: a standard deduction (71%, 50%, or 34% depending on activity type) is applied before your remaining income is taxed — no real expense tracking required, but also no way to deduct actual costs above that flat rate. A SASU is subject to corporate tax (15% reduced rate up to €42,500 profit, 25% above — see our guide to French corporate tax) and lets you deduct real business expenses in full.
For 2026, VAT registration thresholds sit at €85,000 (standard) / €93,500 (increased) for sales, and €37,500 (standard) / €41,250 (increased) for services. Below these, micro-entrepreneurs neither charge VAT nor recover it on their own purchases — which is simple, but means you cannot reclaim VAT on business expenses like equipment or software either.
Declaring a micro-entreprise activity is fast and simple — often the same process, done in a single sitting. Setting up a SASU is a genuine company incorporation: bylaws, share capital deposit, registration through the Guichet Unique (see our company formation guide) — more paperwork, but the structure you will likely want anyway once revenue grows.
If you are testing a freelance idea, expect to stay under the services threshold, and do not need employee-style social coverage, micro-entreprise is the pragmatic starting point. If you are already confident in steady, growing revenue, want real expense deductions, or want the social protection of a salaried-style regime, starting directly with a SASU avoids paying for a conversion later.
Not sure which structure actually fits your situation? Get a straight answer based on your numbers.
Book a free 30-minute call →