Individual Entrepreneur (IC): What you need to know
Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)
The status of the individual contractor (EI) allows for the own-name activity. Indeed, the creation and management of an individual business has fewer constraints than business.
The micro-entrepreneur is an individual entrepreneur who benefits from a simplified tax and social regime. To know the status of the micro company you can consult the sheet on the micro-entrepreneur.
This fact sheet is interested in the individual contractor subject to the classic diet.
When the contractor wishes to exercise a activity only, individual business is a very good option. The formalities of creation and management of the company are simpler than those of a business. For example, it is not necessary to draft statutes or to constitute a share capital.
Individual business, unlike business, does not lead to the creation of another legal personality. It is attached to the person, which is why a person cannot have multiple individual businesses (1 individual = 1 individual business).
The individual entrepreneur may carry out a commercial, craft, agricultural or liberal activity.
Distinction professional heritage and personal heritage
When the entrepreneur sets up an individual business, his personal and professional assets are automatically separated.
The professional heritage is composed of everything that is useful for professional activity. These include, for example, the business premises, the business bank account.
The personal assetsas for him, it is composed of everything that does not enter into the professional patrimony: it is the bank books, the second home.
This separation protects personal assets from any professional debts. On the other hand, if the entrepreneur does not comply with tax or social security obligations, the tax administration or social security bodies can obtain reimbursement of their claims on both assets.
For more information, you can consult the sheet on the separation of assets.
FYI
Where the development of the activity requires the association or the attraction of capital, the individual entrepreneur who has opted for business tax (IS) may make a contribution of his professional assets to a business covered by the IS. This transfer of professional assets does not entail immediate taxation. For more information on this device, refer to the sheet transforming individual business from input into business.
Composition of professional assets
The individual entrepreneur is in principle subject to income tax (IR) but he can opt for business tax (IS) by applying to be assimilated to a EURL: titleContent.
Income Tax (IR)
The system of taxation of profits depends on activity and turnover.
Sale of goods, articles, supplies and foodstuffs to be taken or consumed on the spot
Thresholds applicable to 1er January 2026 are as follows:
Where the company makes industrial and commercial profits (BIC) taxed at the IR, it shall be subject to one of the following income tax regimes depending on the amount of turnover:
- Simplified real regime : turnover in 2025 is between €203,100 and €945,000.
- Normal actual speed : turnover in 2025 is greater than €945,000.
For more information, you can consult the sheet detailing the industrial and commercial profits (BIC): actual tax regimes.
When the turnover achieved in 2025 did not exceed €203,100, the individual business may opt for the micro-entrepreneur scheme for its income received in 2026. For more information, you can consult the sheet on the micro-entrepreneur scheme.
Provision of housing
Thresholds applicable to 1er January 2026 are as follows:
The company generates industrial and commercial profits (BIC) taxed on income tax. Depending on the amount of turnover, the company is subject to one of the following profit tax regimes:
- Simplified real regime : your turnover in 2025 is between €203,100 and €945,000.
- Normal actual speed : your turnover in 2025 is greater than €945,000.
For more information, you can consult the fact sheet on industrial and commercial profits (BIC): actual tax regimes.
When the turnover achieved in 2025 did not exceed €203,100, the individual business may opt for the micro-entrepreneur scheme for its income received in 2026. For more information, you can consult the sheet on the micro-entrepreneur scheme.
Provision of services
Thresholds applicable to 1er January 2026 are as follows:
The company generates industrial profits (BIC: titleContent) and commercial or non-commercial profits (BNC) that are taxed for income tax purposes. Depending on the amount of turnover, the entrepreneur is subject to one of the following income tax regimes:
- Simplified real regime : your turnover in 2025 is between €83,600 and €286,000.
- Normal actual speed : Your turnover in 2025 is greater than €286,000.
For more information, you can consult the sheets on the industrial and commercial profits (BIC): actual tax regimes and on the non-commercial profits: actual tax regime.
Where the turnover does not exceed €83,600, the individual business may opt for the micro-entrepreneur scheme. For more information, you can consult the sheet on the micro-entrepreneur scheme.
(IS)
The individual entrepreneur can opt for the assimilation to a single-person company with limited liability (EURL) which automatically results in its taxation to the business tax (IS). This option entails the tax cessation of the individual business and the transfer of assets to the company now subject to the IS.
However, this cessation benefits from a tax neutrality regime with a tax deferral capital gains generated by the cessation of company to income tax and the transfer of its assets. The contractor is also subject to certain IS-specific requirements regarding the deficit carry-forward and professional capital gains.
For more information, you can consult the sheet on: Switch from income tax (IR) to business tax (IS).
The entrepreneur who opt for business tax must act within the first 3 months of the financial year in which it wishes to see the option applied. For example, if the accounting year ends on December 31, 2026, the option must be made before March 31, 2026.
To subscribe to this option, the individual contractor sends a written request to the company tax department (SIE) of the location of his main establishment:
Please note
The individual entrepreneur has 5 years to give up the option at the IS. Beyond these 5 years, he can no longer give up.
The contractor's remuneration depends on the company tax system. He is in principle subject to income tax (IR) but he can opt for business tax (IS) by asking to be assimilated to a EURL: titleContent.
Income tax (IR)
When the contractor is subject to the RI, the remuneration depends on the fiscal result company.
Taxation on businesses (IS)
Where the contractor has opted for the IS, it may collect a fixed remuneration which is deductible from fiscal result.
It may also perceive dividends.
For more information, you can consult the fact sheet on income of an individual contractor.
The individual entrepreneur is covered by the social security scheme for the self-employed, which is part of the general scheme, and pays his social contributions and contributions to the Urssaf.
The amount and calculation of social security contributions varies according to income. They represent about 45% income from work.
When the contractor has little or no income, this amount decreases and the contractor pays minimum contributions to continue to benefit from social protection.
For more information, you can consult the fact sheet on social security contributions and the social protection for traders and craftsmen.
The Urssaf provides a simulator to help individual entrepreneurs calculate their social security contributions based on their income:
The contractor may pass on his individual business to a member of his family, to one employee or to a third party (e.g. a business). The transmission may be carried out as free (donation) or as expensive (assignment or business intake).
The transmission may relate to the goodwill or on theentire professional assets (goodwill, real estate, security interests and professional debts).
This transmission shall give rise to the payment of registration fee at the check-in service.
For more information, you can consult our file on the company transmission.
The purpose of this table is to compare the main characteristics of the status of individual entrepreneur with that of the sole partner of an SASU or an EURL.
IS | SASU | EURL | |
|---|---|---|---|
Number of associates | No partner | 1 | 1 |
Leader | Contractor | ||
Share capital | No share capital | ||
Taxation system | Possible option for IS | Possible option for IR | Possible option for IS |
Executive's social plan |
| ||
Social Titles | No social titles | Actions | Shares |
Transmission of company | Free | Free | Free |
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Status of the individual contractor
Distinction professional heritage and personal heritage
Composition of professional assets
Option for IS
Simulator