personal belongings, Mention of individual company : what are the impacts on the activity of the self-entrepreneur?
It is on May 15, 2022 that the provisions on the new individual entrepreneur statute.
Among these: the personal property protection and the obligation to display in all company documents the words ” sole proprietorship or is it“.
Are you autonomous? So you are above all in a sole proprietorship and you will have to say so in all your business documents! Including the title of your bank account with any changes this may imply.
Your personal assets are automatically protected
Previously, the individual entrepreneur, therefore the self-entrepreneur, was responsible for all his debts on all his assets, except for the main residence since the Macron law of 2016.
If you wanted to protect your personal assets, the self-entrepreneur could opt for an EIRL (Individual Limited Liability Company). However, the process required carrying out a assignment statement listing the assets assigned to the business. With the distinction between personal property and professional property introduced by the law of February 14, 2022 in favor of professional activity, the enforcement decree of April 26, 2022 extinguishes the regime of the individual entrepreneur with limited liability (EIRL).
Distinction between personal and professional property
Since the law of 14 February 2022, a distinction is made in the assets of the self-employed person between their personal assets and their professional assets.
Only the professional assets of the self-entrepreneur can be pledged by creditors (Urssaf, CGSS and others…). Attention, this provision skips in case of fraud.
However, if the entrepreneur needs to rely on his personal assets vis-à-vis the bank, for a loan, for example, he can waive this separation for a determined time and value of the commitment.
The decree of April 28, 2022 clarifies the contours of this novelty as well as the content of the act of waiving the protection of your personal property.
How do you waive the protection of your personal property and for what reasons?
For example, your banker may ask you to be guarantor for a bank loan related to your business: in this case, you will have to waive the protection of your personal assets. Indeed, the distinction between personal property and professional property does not authorize the individual entrepreneur to be guarantor of a debt of which he is the main debtor.
The deed must include the following elements:
- the individual entrepreneur = surnames and first names, nationality, date and place of birth, domicile, professional activity, address of professional activity, company identification number or declared date of commencement of activity;
- the beneficiary of the waiver = corporate name or company name, address, company identification number, indication of whether the beneficiary is a credit institution or a finance company;
- the commitment under which the waiver is sought = the date of the commitment, its purpose, its validity period, its value, the date of the waiver request;
- the act of resignation = signatures of the individual entrepreneur and the beneficiary of the waiver, date and place;
- reducing the cooling off period = handwritten statement by the individual entrepreneur declaring that he waives the benefit of the reflection period of 7 working days for a period reduced to three working days.
Good to know !
The beneficiary of this waiver must inform the individual entrepreneur of the possible consequences of this waiver on his assets.
The new regulations for the transfer of personal property
Provision is also made for the transfer of professional assets, an act that does not concern independent entrepreneurs: here it is a question of transferring assets linked to a company, such as its premises.
Social debts remain linked to the individual entrepreneur: they are personal debts.
Debts for contributions and social contributions for which the individual entrepreneur is responsible to Urssaf and CGSS cannot be transferred. Social debts remain those of the individual entrepreneur.
How is the professional heritage of the self-entrepreneur constituted?
A self-entrepreneur is an individual entrepreneur who carries out one or more professional activities independently. Your professional heritage is automatically composed of the following elements:
- your goodwill, your customers or your patient base (in particular for a self-employed self-employed person);
- personal property : this term designates goods, equipment and tools, means of mobility for itinerant activities such as home sales and services, transport or delivery activities;
- immovable property used for your business : the part of their main residence can thus make up all or part of the self-entrepreneur’s personal assets if they so wish;
- cash fundsany amounts of money held at the place of exercise of the professional activity, the amounts entered in the bank account dedicated to this activity, as well as the amounts intended to cover current expenses related to this same activity.
What are the new particularities that the self-employed entrepreneur must include in their documents?
This is one of the great novelties of this law, which will require an update to your business documents, as of May 15, 2022:
The Creation and management pack of the Federation is thus being updated.
Invoices, quotes, general sales conditions, service agreement, website, letterhead… the self-entrepreneur must before or after your name (or usual name) and first name, write the words “Individual Company” or “EI”.
what will give Grégoire Leclercq EI Where Grégoire Leclercq Sole Proprietorshipo to the President of the Federation.
The EI mention must appear in your bank account
This mention must appear in your dedicated bank account. An obligation that raises many questions and requires vigilance on the part of the Federation of Independent Entrepreneurs in the areas of its application.
In concrete terms, what changes will the law bring?
The self-entrepreneur must ask his banker for the account dedicated to his activity to add the mention Individual Entrepreneur or EI after his name and surname.
This The EI record must be visible in the RIB (bank account statement): we will see now Last name + first name + EI or sole proprietorship
and on all bank documents, name on account statement, mention of first name EI or individual company.
But to implement this modification, which seems trivial, banks must adapt their system to add a new field in the profile sheet of their customers.
Dedicated account or pro account, will the self-entrepreneur still be able to choose?
A beneficial novelty or not? This is all the uncertainty of this novelty.
The positive impacts of displaying the EI mention
We can easily assume that displaying the mention EI after the surname and first name of the self-employed entrepreneur will have positive consequences:
- for self-employed : some self-employed entrepreneurs often mistakenly believe that they are not a sole proprietorship and therefore do not have the same rights (and obligations!) as a student;
This obligation can thus help you to understand that the self-employed person or micro-enterprise is above all an individual company to which a social and tax system applies.
(we are talking about micro social and micro tax and the fact that it is a flat rate regime)
and for customers, suppliersWill it be the end of prejudices about micro-enterprises?
The approach is the same, as the customer, when seeing the mention Unipessoal registered in the RIB, in the sales documents of his service provider, may be surprised at first. It is highly predictable that some will say, “I thought you were self-employed, but you say sole proprietorship. »
A little accelerated training will then be necessary to explain that the self-entrepreneur is in sole proprietorship, that the self-entrepreneur is not a statute and that he is not obliged to mention his tax and social regime in his documents!
One can imagine that the legislator helps the self-entrepreneur in this sense to enforce his regime, to perhaps finally pull the rug from under the feet of so many prejudices.
Yes, there is a “but” because there is a risk: that this measure makes the professional account mandatory.
Will the dedicated account still be accessible even if he is not a professional?
Will the banks play the game? The question is valid. He ateobligation to register the mention Unipessoal in the individual entrepreneur’s bank account, there is a risk that banks will refuse to add this mention to a personal account.
They are already (too) numerous, despite the law that offers the possibility of individual entrepreneurs have only one personal account dedicated to their activity, leaving them with no choice but to open a professional account, often at prohibitively high prices.
The fear is that those who have a personal account dedicated to their activity will be refused to have the mention EI or individual company added to their account. But maybe we’re waving the red flag for nothing, maybe the banks don’t see this as a windfall.