Individual Entrepreneur (IC): What you need to know
Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)
The status of the individual contractor (EI) allows for the exercise of a proprietary activity. Indeed, the creation and management of a {circumflex over (X)} has fewer constraints than the business.
The micro-entrepreneur is an individual entrepreneur who benefits from a simplified tax and social system. To know the status of the micro company you can consult the sheet on the micro-entrepreneur.
This sheet is interested in the individual contractor subject to the conventional diet.
When the contractor wishes to exercise a activity only, l'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.
L', unlike the business, does not lead to the creation of another legal personality. It is attached to the person, which is why a person may not own more than one sole proprietorship (1 individual = 1).
The individual entrepreneur may carry out a commercial, craft, agricultural or liberal activity.
Distinction professional heritage and personal heritage
When the entrepreneur creates a business, his personal and professional assets are automatically separated.
The professional heritage is composed of all that is useful to the professional activity. This is 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 fact sheet on the separation of assets.
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 tax regime depends on the activity and turnover.
Sale of goods, articles, supplies and foodstuffs to take away or consume on the spot
Where the company earns industrial and commercial profits (BICs) taxed at the IR, it shall be subject to one of the following schemes depending on the amount of turnover:
- Simplified real regime: turnover is between €188,700 and €840,000.
- Normal real regime: turnover is greater than €840,000.
For more information, you can consult the fact sheet on Industrial and commercial profits (BICs): actual tax regimes.
When the turnover does not exceed €188,700 , the {circumflex over (a)} may opt for the micro-entrepreneur regime. For more information, you can consult the sheet on the micro-entrepreneur scheme.
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
Provision of housing
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 schemes:
- Simplified real plan: your turnover is between €188,700 and €840,000.
- Normal real regime: Your turnover is greater than €840,000.
For more information, you can consult the fact sheet on Industrial and commercial profits (BICs): actual tax regimes.
When the turnover does not exceed €188,700, the {circumflex over (a)} may opt for the micro-entrepreneur regime. For more information, you can consult the sheet on the micro-entrepreneur scheme.
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
Provision of services
The company generates industrial profits (BIC: titleContent) and commercial or non-commercial profits (NCBs) that are taxed for income tax purposes. Depending on the amount of turnover, the entrepreneur is subject to one of the following schemes:
- Simplified real plan: your turnover is between €77,700 and €254,000.
- Normal real regime: Your turnover is greater than €254,000.
For more information, you can consult the sheets on the Industrial and commercial profits (BICs): actual tax regimesand on non-commercial profits: actual tax regime.
When the turnover does not exceed €77,700, the {circumflex over (a)} may opt for the micro-entrepreneur regime. For more information, you can consult the sheet on the micro-entrepreneur scheme.
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
Corporate tax (IS)
The contractor can decide to opt for taxation to business tax. He's got five years to give up the option. Beyond these 5 years, no turning back is possible. From a tax point of view, the assimilation to a EURL makes a distinction between the individual entrepreneur and his company. Each has its own heritage. The company is subject to certain specific business tax rules, in particular those relating to deficit carry-forward and professional capital gains.
For more information, you can consult the fact sheet on: Moving from Income Tax (IR) to business Tax (IS).
Industrial and Commercial Benefits (BIC)
Option for SI
The contractor's remuneration depends on the company taxation 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 of the company.
Taxation on businesses (IS)
When the contractor has opted for the SI, he can collect a fixed remuneration which is deductible from fiscal result.
It can also collect dividends.
For more information, you can consult the fact sheet on income from an individual contractor.
The individual entrepreneur is affiliated to the social security of the self-employed 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.
The Urssaf provides a simulator to help the individual entrepreneur calculate the amount of his social contributions based on his income:
Social contribution simulator for self-employed
FYI
The calculation basis social security contributions and certain contribution rates will evolve in 2026, after the 2025 declaration of professional income.
For more information, you can consult the fact sheet on social security contributions and the social protection for traders and craftsmen.
The contractor may pass on his/herfamily, to one employee or to one third party (ex: a business). The transmission may be carried out by way of free (donation) or as expensive (assignment or business input).
The transmission may relate to the goodwill or on thethe entire professional heritage (goodwill, real estate, overpaid and professional debts).
This transmission shall give rise to the payment of a 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 a SASU or a EURL.
IS | SASU | EURL | |
|---|---|---|---|
Number of associates | No partner | 1 | 1 |
Leader | Contractor | ||
Share capital | No share capital | ||
Taxation system | Possible option for SI | Possible option for IR | Possible option for SI |
Executive social security scheme | |||
Social securities | 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
Industrial and Commercial Benefits (BIC)
Non-Commercial Earnings (NCB)
Option for SI