2016 will be a great year or it won’t be! Today, I can say it and I can be proud of it. It’s done: I created my business. It was one of my objectives for the year but I had to achieve it as soon as possible. How did I do it? Which status did I choose? Why should you do the same? Moreover, in what cases is my example an example NOT to be followed? All the answers are below and much more!
How do I do a little too much? 😉
It was in October 2014 that I launched my first niche site. I had read here and there that some were able to generate a nice income. It was even said at the time that some people made a living from it! Curious, but above all attracted by the lure of profit 🙂 , I in turn launched a site of this type. I quickly set myself the goal of earning a hundred euros a month thanks to this one.
A little over a year has passed since then and here we are already at the beginning of 2016. If I only had one site of this type, I now have a larger number to my credit. Not all of them have (yet 😉 ) had the same success, but today they allow me to free up several hundred euros automatically. Without having to do anything. Or almost.
I decided to set up my own business to make myself clear. To be able to declare this new source of income properly . Because if it is possible to declare some one-time income directly on its tax form, the sums collected are now significant and regular.
And I’m not going to complain about it!
The auto-entrepreneur, we talk a lot about it. Simple to set up and not requiring elaborate accounting, it has some nice advantages. In a few clicks on the internet, you can declare yourself a self-entrepreneur.
But this apparent ease of implementation comes with a significant drawback . In any case, this inconvenience is prohibitive for my case. What is it? The answer is in a few words: the charges and taxes to be paid are based on turnover . Because if I created my business and I find it fair to give back part of the money we earn, this money still has to arrive and really stay in my pocket.
But what is he talking about Squatte, his turnover is the money he earns, isn’t it?
First of all, let me specify that I am absolutely not an accountant. If you want to clarify the lines that will follow, I invite you to correct me in the comments accessible just below this article 🙂 .
Revenue is actually the money a business makes. A box that sells 100 products at €40 each actually achieves a turnover of €4,000. But did she really earn €4,000 by selling all her stock? Well no, because the manufacture of the product may have cost him 30€ per piece.
Simplifying to the extreme, it had to pay €3,000 to build its 100 products. So she spent ,000 to earn ,000. I deliberately do not take into account the additional costs of logistics, R&D, etc. to facilitate everyone’s understanding.
In this example, we have:
A self-employed person is therefore taxed on his turnover. In reality, it’s a bit more subtle than that. Its expenses and its taxation are calculated on a percentage of its turnover, according to its type of activity. To be confirmed, but it seems to me that the reduction varies between 71% and 34% depending on the activity carried out.
A micro-entrepreneur will therefore be indebted to the state for a certain amount depending on a percentage of his turnover. But what if, in our previous example, €1,000 of logistics costs were also to be paid?
We would then have:
Despite everything, a micro-enterprise presenting such results would still be liable to taxes for an amount depending on a percentage of its turnover. From its €4,000 turnover. While in the end she made no profit .
In my case, the money I release does not really constitute additional income. Indeed, for now, I just want to grow my internet business. I’m still employed and I don’t “need” the money that my sites generate. So I want to reinvest my earnings . To launch new sites. To improve their referencing. My idea is that for €500 earned over a month, €500 is invested. The idea is that each month my profit (turnover from which the expenses are subtracted) is equal to 0.
With this approach, being taxed on my turnover is therefore not very interesting… I looked for a status with which I could deduct my expenses, to be punctured by the state on my real profits. It is this point that prompted me not to take the “status” of micro-entrepreneur. Attention, I completely understand that the “status” auto-entrepreneur suits many. But not to me.
I then hesitated between 3 statuses: Sole Proprietorship, SASU and EURL. Without going into detail, I ended up opting for the Individual Company (EI), in particular because in terms of accounting follow-up and procedures, it was the simplest status of the 3 🙂 . The idea was to get started, we’ll see in a while if it suits! And at worst, I will change 🙂 .
There you go, now you know why I started my business 🙂 . For those who want more information on the subject, do not hesitate to take a look at the PACE website, which is a bible on this type of subject. Maxime’s article from the Web & SEO blog on freelancers is also interesting to read.
On your side, have you already set up your company/enterprise? Would you have made the same choice as me?