Self-employed professionals: everything you need to know to get started!

By Samantha Mur

Published: November 16, 2024

Are you a self-employed professional looking to start up or continue your business under the micro-entrepreneur (formerly auto-entrepreneur) scheme? How do you set up a self-employed business or practice a liberal profession, auto-entrepreneur or micro-entrepreneur precisely? Auto-entrepreneur status simplifies the day-to-day procedures involved in setting up and running a business, as well as the payment of social security contributions.

While the micro regime offers many advantages for your sole proprietorship, as we shall see, there are a number of specific features you need to be aware of before adopting it wholeheartedly. In terms of social security, tax and accounting obligations, what are the particularities you need to know to run your business with peace of mind? What formalities apply? Be aware of the subtleties, save yourself the trouble, and discover what dedicated tools can do for you!

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Which professional activities fall under the liberal professions?

A liberal profession is...

... first and foremost, a self-employed professional activity that does not fall within any of the following sectors:

commerce,
industry
crafts,
agriculture.

Liberal professions, which mainly involve the provision of intellectual, technical or nursing services, are carried out by people who ..:

"[...] independently and under their responsibility, in the interest of the customer or the public, [...] by means of professional qualifications and in compliance with ethical principles or professional ethics."

service-public.fr

☝ In legal terms, a liberal profession is governed by civil law, not commercial law.

Regulated or unregulated liberal professions?

Which professions are regulated?

These are professions for which a higher-education diploma has been awarded, and whose practice is governed by a professional body (order, chamber, union, etc.).

They include: lawyers, chartered accountants, self-employed nurses, doctors, midwives, etc.

👉 Some of them must comply with a code of ethics, and sanctions are applied in the event of breaches.

👉 The public health code regulates certain healthcare services; this applies to dieticians, self-employed nurses, masseur-physiotherapists, speech therapists, chiropodists, etc.

👉 Finally, some activities are the responsibility of state-appointed professionals: public or ministerial officers. These include solicitors to the courts of appeal, auctioneers, commercial court clerks, bailiffs and notaries, appointed according to specific procedures by decision of a minister.

What are the unregulated professions?

These are other professions practiced as sole proprietorships that do not fall within the scope of craft, commercial, industrial or agricultural activities.

These professions are not controlled by a professional body. They are essentially intellectual or creative activities. In most cases, they can be exercised freely, but in some cases, authorization or entry on the public register is required.

They include consultants, translators, etc.

Changes for the liberal professions and the self-employed in 2020

Caisse Nationale RSI

🔎 ACRE's new features for micro-entrepreneurs in 2020:

ACRE has been subject to new conditions since January 1, 2020. To benefit from it, you must, for example, be a job seeker, be under 25, or meet other criteria.
This aid is granted for a period of one year, as opposed to three years previously.
Finally, the rate of exemption has been reduced from 75% to 50% for new beneficiaries. For professionals who benefited before 2020, the exemption rates have also changed: 25% in the second year and 10% in the third.

Source : Captaincontrat.com

Combining self-employment and auto-entrepreneur: particularities and advantages

Difference with auto-entrepreneur status for other activities

Compared with the normal micro-enterprise system, here are the variations that await you as a self-employed professional:

sales ceiling: the ceiling differs according to the activity.
tax: the profits generated by your self-employed activity are subject to income tax at a rate of 2.2%. The tax regime for a liberal profession specifically falls into the category of non-commercial profits or BNC, also known as the " micro BNC " regime.

social security: self-employed professionals are required to register with organizations such as URSSAF to pay social security contributions and obtain family allowances, and Sécurité sociale des indépendants (SSI) to benefit from health/maternity coverage.

Advantages and disadvantages of micro-business

The advantages of self-employed self-employment

The auto-entrepreneur status offers numerous administrative advantages.

As of January 1, 2020, in a move to simplify matters, social security for the self-employed is no longer separate from the general Social Security system. The self-employed micro-entrepreneur is now affiliated to URSSAF and Sécurité sociale des indépendants(SSI, formerly RSI).

You pay social security contributions based on your sales. If you have no revenue, the rate will be zero! That said, you won't be exempt from declaring; it's still compulsory.

☝ Good to know: for liberal professions covered by the SSI, the rate is 22% of sales.

Social security contributions under the micro-enterprise scheme include:

health and maternity insurance,
family allowances,
disability and death,
basic and supplementary pensions, etc.

Added to this is a 0.2% contribution to professional training, giving an overall rate of 22.2%.

Another advantage is that the formalities for declaring these charges are simplified: you can go to the dedicated website autoentrepreneur.urssaf.fr, declare your income, according to a monthly or quarterly due date, which you will have chosen in advance, and the calculation is carried out automatically. You can choose to pay by SEPA direct debit or credit card.

In addition, you can apply for ACRE (aide à la création ou à la reprise d'entreprise), which allows professionals starting up a business to benefit from a reduction in the rate at which their social security contributions are calculated over a given period. Applications must be submitted within 45 days of the date on which the micro-enterprise is set up, and must meet certain conditions.

The disadvantages of self-employment as a liberal profession

First of all, as a non-salaried worker (TNS), the self-employed entrepreneur's activities are subject to an income ceiling: his or her annual sales must not exceed the threshold of 72,500 euros excluding tax for the provision of services (following the revaluation of the ceiling in 2020).

Furthermore, as the business is strictly individual, the professional cannot hire employees.

Software selection for self-employed professionals and self-employed entrepreneurs

Indy (formerly Georges) Accounting

Indy is a software package specially designed to meet the accounting management needs of self-employed professionals in the healthcare, legal and consulting sectors, under the BNC regime. A true assistant, Indy automates all your accounting: it recovers your transactions via synchronization with your bank, and automatically allocates income and expenses to the right accounts.

Its strengths include

an ultra-simplified tool that is highly accessible to accounting beginners,
electronic transmission of tax returns to the AGA,
responsive, efficient and attentive customer support.

MonAE

MonAE is a software package designed to meet the needs of auto-entrepreneurs. From sales declarations to administrative formalities and bookkeeping, MonAE takes care of everything, right down to the obligatory information on your invoices. In addition to accounting and invoicing, the solution also offers customer tracking and business management via an intuitive dashboard.

Its strengths include

integration of artificial intelligence for automation,
automatic bookkeeping of receipts,
delegation of relations with public bodies by a team of advisors.

Wity

Wity is a software package that automates the management of your accounting online. Wity is a 100% digital accounting firm, a solution to help you set up and manage your business on a day-to-day basis. Via its online platform, it offers you personalized expert advice and support for your structure, wherever you are and whenever you need it. Your online chartered accountant is at your side as you go about your business!

Highlights include

automatic retrieval and categorization of your banking transactions,
monitoring and alerting you if your micro-business thresholds are crossed,
personalized support from a dedicated accountant for your entire business.