Apart from the SARL and the SA, the future business manager can opt for the SASU (simplified single-member joint stock company). Like all other legal forms, it has these characteristics, its mode of operation, its advantages and its disadvantages. Before opting for a legal status, the creator of the company must take note of these advantages and disadvantages in order to identify the strengths and weaknesses of the company as quickly as possible. The specificities and general characteristics of the single-member simplified joint stock company are summarized below.
What is a SASU?
SASU is a company with a commercial form. Its single-person form forces it to have only one partner. Very flexible, it is not governed by precise operating rules. It is up to the main partner to draft the statutes and put in place the necessary regulations for decision-making and the proper functioning of the company. So when an entrepreneur opts for SASU instead of another legal status, he must rely essentially on the characteristics of his project. It is after reviewing each element that the business manager moves towards the appropriate status.
The general characteristics of the SASU
SASU does not offer its shares to the public unlike SA. The will and personal vision of the business manager only take precedence at the level of partnerships, unlike capital companies. With the SASU, you have the possibility of carrying out all activities with the exception of activities such as regulated activities, tobacco shops and insurance. Entrepreneurs favor the SASU to the detriment of other legal statuses because it allows a distinct exercise of one's own name. The latter is therefore protected in the event of a major problem linked to the company's assets. With the contribution of capital, its financial responsibility is quite limited.
It is a very flexible legal status. The law allows the sole shareholder to maneuver and organize the company as he sees fit. It is up to him to plan the decisions that will be taken by the president or other bodies created for this purpose. During the exercise, he also has the possibility of changing one third of his mission. Unlike the limited company, the capital of the SASU is free. The sole shareholder can set his amount, but this is not recommended in practice. He can provide financial resources or goods in kind for the functioning of the company. The natural evolution of the simplified single-member joint stock company gradually leads it towards a multi-person form without any formality.
The advantages of SASU
The SASU is a form of company which offers a multitude of privileges to the business creator with regard to the operation of the business, the statutes and regulations but also taxation. The manager of a single-member simplified joint stock company is registered with the general social security system. That is to say, he benefits from the same social protection as employees who are under an employment contract. Only unemployment insurance is missing.
To date, it is the only legal form that offers this advantage to a business creator. The liability of the sole partner is limited with SASU. If he is held responsible for social debts, it is only in the context of these contributions. His personal assets are protected and remain far from the company's creditors provided that they do not commit management errors. Given that the legislation barely regulates its operation, it is very flexible. The sole shareholder has the privilege of drafting the company's statutes as he sees fit. The rules of operation and organization of the company do not depend on legislation. With the SASU, the business creator has the possibility of opting for IR or IS. Regarding taxation, the SASU is in principle subject to corporate tax. But the sole shareholder can opt for the company regime. This allows him to personally bear the taxation of profits.
In general, companies subscribe to a social security contribution on dividends. The SASU business manager is not liable for any social security contributions on these dividends. Its social treatment differs from that applied to self-employed workers. He is not obliged to pay a contribution on dividends.
The disadvantages of SASU
Like all other forms of company, the SASU does not only have advantages. There are several disadvantages linked to this status that you should be aware of. The most important relates to the formalities for creating the company which are not simple. The formalities for creating a single-member simplified joint stock company are more complex than those required to set up as an individual. First of all, you must take the trouble to write the statutes. The steps necessary to obtain this status can be outsourced to a professional. However, a cost is to be expected. The social protection of a SASU has a fairly significant cost. Especially that of the main manager of the company. It is higher than that of managers affiliated to the social security of an independent company.
In the general system, contributions are higher, because they are calculated from an equivalent base. This roughly doubles the amount of social security contributions. While other companies benefit from long-term IR taxation, SASU is only entitled to 5 financial years at most. After these 5 financial years, it is subject to corporate tax which is not very advantageous for the business manager.
Once the objectives have been achieved or in the event of a malfunction, the business manager is responsible for closing his company. The procedure for closing a SASU is long and complex. Because the formalities to complete for its closure are costly and complicated. The closure of a SASU requires an early dissolution procedure which is accompanied by liquidation. Considering its advantages and disadvantages, the future business manager is able to better appreciate the specificities of the SASU. He can opt for it or not depending on his objectives and the activities to be carried out.
