As an individual contractor, you are subject automatically to theincome tax (IR)in the category of industrial and commercial profits (BIC) or non-commercial profits (BNC) on the taxable profit generated by your activity.

You are then subject to either a actual tax regime (simplified or normal) or a micro-tax system (micro-BIC or micro-BNC).

If you are subject to a real tax regime, you can, however elect to be taxed on businesses (IS). For this, you must opt for a assimilation to a single-person company with limited liability (EURL).

The assimilation to a EURL: titleContent subject to the IS has several consequences.

From a tax point of view, this assimilation creates a tax personality distinct from yours. Your company is subject to certain specific business tax (IS) rules, in particular those relating to deficit carry-forward and those concerning capital gains.

Tax consequences

The option of the individual entrepreneur for business tax has several consequences:

• The individual business is no longer subject to income tax (IR).
• The assets and liabilities of the individual business are transferred to the balance sheet of the company treated as an EURL.

Following this transaction, the individual entrepreneur can choose one of the 2 tax regimes:

• Tax Neutrality Regime which allows it to place in tax deferral capital gains. These arise from the cessation of income tax (IR) company and the transfer of assets from the individual entrepreneur to the EURL-like company.
• Immediate taxation of capital gains. For more information, refer to the fact sheet on thetaxation of business capital gains.

Consequences on the taxation of your remuneration

Your remuneration is taxed on income tax in the category of salaries and wages. Your income other than your remuneration is taxed for income tax purposes in the income from movable capital (RCM).

Consequences for your social security contributions

You are subject to social security contributions of self-employed persons on your net remuneration. This is your remuneration after deducting your mandatory personal social contributions and your actual expenses (expenses incurred in the course of your professional practice). Such remuneration shall also be increased by optional premiums and contributions.

You are also subject to the social contributions of self-employed workers for the fractions of distributed income greater than 10% your net profit.

You must send a request by post in the service of company taxes (SIE) which your company depends on (the location of the main establishment):

You must specify the following items :

• Name
• First name
• Name : Individual contractor or EI
• Address
• Signature

You must notify your option for assimilation before the end of the 3rd^e fiscal month of your activity.

The option to be assimilated to EURL: titleContent is irrevocable.

However, you can finally decide to waive the business tax. This waiver can be made until the month preceding the payment of the first advance IS of 5^e next fiscal year the one in which you opted to be assimilated to EURL.

The waiver must contain the following items :

• Name of your company
• Address
• If different from the address, the place of its principal place of business
• Fiscal year to which the waiver applies