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The Limited Liability Sole Trader status

01.13.2017

(Entrepreneur Individuel à Responsabilité Limitée or EIRL)­

Businnessman, whether craftspeople, traders, farmers or micro-trader, self-employed professionals, may opt to be classified as a sole trader with limited liability (EIRL).

  • What is the sole trader with limited liability (EIRL)?

    • By the status of the EIRL, the Contractor's personal property is protected. Indeed, the individual entrepreneur determines, in a statement of assignment, the patrimony allocated to his professional activity.
      It responds to one of the main concerns of the individual entrepreneur in his own name: to better protect the family patrimony in the event of bankruptcy.

    • The tax system is that of the income tax but it is possible to opt for the companies tax (except for the micro-trader).
      Since the Macron law of 6 August 2015, the rights of a natural person registered in a register of legal publicity of a professional nature or engaged in an agricultural or independent professional activity on the immovable where his principal residence is fixed are exempt from seizure by creditors whose The rights arise in connection with the person's professional activity (Article L 526-1 of the Commercial Code).

    • The contractor remains as owner of these assets - personal and professional - without having to create company.

    • The individual contractor status to limited liability (EIRL) must file their annual accounts with the register where filed their statement of patrimony.

  • More informations about the sole trader with limited liability?

See also
06.25.2014
The role of the Notaire
29.11.2016
The letter of the notaries of France in the world / November 2016
25.01.2017
French property market report / N°34
congres_notaires_europe_cnue_2017
22.09.2017
4th Congress of the Notaires of Europe