Europe

New rules and protection for French self-employed

French car entrepreneurs and micro enterprises will soon need to add new tags to their names to identify them. Start an individual situation. The mechanism and reason are as follows.

From 15th May, all Individual entrepreneurOr if you are a sole proprietor, including a sole proprietor or a micro-enterprise, documents related to your business or promotion of your business must include the letters “EI” or “Individual Entrepreneur” before and after your name.

This slight addition can mean the difference between whether an individual’s finances are protected from professional debt.

In the past, only the individual’s primary residence was protected from the occupational debt incurred. From 15thIn May, this was changed to include all personal assets, providing an additional layer of security for those building their own career paths.

For example, a person runs a mobile car wash business from home. This person owns her home, has a personal bank account, and has a collection of vintage cars. Her company has a business bank account, a mobile car wash, and all the equipment you need to get the job done, including high-pressure hoses, sponges, and vacuum cleaners.

The person takes out a loan to expand the company, but takes out a loan by default. Prior to this new law, her creditors were able to chase everything except her home to regain their money. Currently, they can only track things related to her business: business bank accounts, mobile vans, and equipment. Her home, personal bank account, and her vintage car collection are safe.

The system is so new that creditors still lack the formal requirements set out to benefit from this protection, so creditors identify which assets are individuals and which assets are relevant to the business. I need a way to do it.

The proposed method is incredibly easy. The business owner must add the EI or sole proprietorship before or after the name in all documents and documents related to the company. Must be added to all invoices, receipts, quotes, purchase orders, and all promotions.

The law is not retroactive and does not include debt incurred more than 15 years agoth In May 2022, we will also not exempt EI from debtors who seize income taxes and social costs that are considered personal assets. Finally, if the EI fails to use the new Monica after the 15th, it will be fined up to € 750.th..

The previous alternative is Self-employed à responsabilité limitée (EIRL), or a limited liability sole proprietor, this process was very complex, required a lot of paperwork, and protection was fairly limited.

This new status aims to phase out EIRL, streamline the system, and provide protection in an easy way for anyone to implement immediately.The text of the new law came into force on the 15thth In February, we banned the formation of a new EIRL and made EI a new gold standard for self-employed people.

 

 

 

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