A so-called liberal profession can be exercised under several types of legal status.

Register in your own name

In own name means in individual enterprise.

In spite of the term "own name" the entrepreneur's patrimony is separated from the company's patrimony since 2022. This means that in case of bankruptcy of the company, the liability of the entrepreneur is limited to what he has invested in the company.

The sole proprietorship is subject to the BNC regime or controlled declaration:

• • Micro BNC if revenues are less than 72 600 € (34% deduction)
  • Controlled declaration beyond or on option: taxable profit determined by the difference between the collected receipts, the paid expenses and the depreciation annuities of the tangible goods assigned to the professional activity.

The entrepreneur's income is subject to income tax as well as social security contributions (Urssaf, health and pension funds).

Being a self-employed professional has certain advantages: simplicity and a low tax rate in some cases.

However, it will be impossible to modulate the amounts of social charges which will be calculated on the totality of the professional income.

Choose the SEL (Société d'Exercice Libérale), the best known being the SELARL

The liberal practice company is not a status in its own right. This type of organization can be proposed under different statutes: SELARL, SELAS, SELAFA, SELCA.

This type of status is ideal for associations of several professionals.

• The liability is limited. This means that the liability of the partners is limited to their contributions to the company. The property of each partner as a natural person is not affected.
• The SEL can opt for corporate income tax.
• The partner will be taxed personally on the income received as a director as well as any dividends received.
• Social security contributions will be calculated on the income of managers and on any dividends exceeding 10% of the capital

This type of status allows the company to be created with partners, which is very useful for medical or legal practices, for example. In addition, the tax rate is fixed and the personal tax is reduced.

However, it is a more restrictive structure in terms of formalism and the accounting obligations are more onerous.