International founder context#
This guide is written for expats and foreign founders by a French CPA, an English-speaking accountant in Paris, with practical focus on accounting in France, French corporate tax, business setup in France and French payroll.
Why EURL in 2026?#
The EURL (single-member limited liability company) is the most tax-efficient legal form for a solo founder drawing meaningful compensation and not planning to raise funds. The single-member sister of the SARL combines limited liability, TNS director status (social charges roughly halved vs SASU) and tax flexibility (IR or IS).
Yet EURL is largely overlooked vs the trendy SASU. This guide by Samuel HAYOT, English-speaking French CPA in Paris 8th, gives you the selection criteria, setup steps, IR/IS arbitrage and pitfalls to avoid.
2026 typical case: a consultant invoicing €120k excl. VAT/year with €30k expenses, €90k profit. EURL with IS option + €50k salary + €25k dividends → net income after all taxes ≈ €56k vs ≈ €47k in equivalent SASU. Difference: +€9k/year.
1. What is an EURL?#
A single-member SARL (article L223-1 Commercial Code), with legal personality distinct from its sole member. Liability limited to contributions (except personal guarantees).
| Feature | 2026 value |
|---|---|
| Members | 1 (individual or legal entity) |
| Liability | Limited to contributions |
| Minimum capital | €1 (free) |
| Default tax regime | IR (pass-through) |
| Optional IS | Available, irrevocable after 5 years |
| Sole-member director status | TNS (self-employed scheme) |
| Statutory auditor | Above thresholds (€1.55M assets, €3.1M turnover, 50 employees) |
2. EURL vs SASU: the key decision#
| Criterion | EURL | SASU |
|---|---|---|
| Compensation social charges | ~40% (TNS) | ~80% (employee-equivalent) |
| Dividend social charges | ~40% on portion > 10% capital (at IS) | 17.2% PS + 30% flat tax |
| Social protection | Self-employed (decent, weaker on unemployment/retirement) | General regime (employee equivalent except unemployment) |
| Investor image | Low | Strong |
| Bylaws flexibility | Constrained | Highly flexible |
| Fundraising | Difficult | Suited |
Rule of thumb#
- Pick EURL: freelancer/consultant/craftsman, primary compensation > €30k/year, no fundraising planned, TNS optimisation.
- Pick SASU: startup project, fundraising envisaged, dividend-led, stronger social protection, BSPCE.
3. IR or IS: the tax arbitrage#
Default IR#
Profit taxed directly at member level at progressive IR rates (0/11/30/41/45%), even if undistributed. TNS contributions on full profit.
IS option#
15% up to €42,500, 25% above. Director chooses compensation (deductible); residual stays in company or distributed.
When to elect IS: profit > €40-50k/year, personal MTR ≥ 30%, will to capitalise, real compensation below profit. Notify within first 3 months of fiscal year. Irrevocable after 5 years.
4. Setting up an EURL — 7 steps via INPI#
- Name & registered office — INPI search + Infogreffe; home address (max 5 years), commercial premises or domiciliation company (€40-80/month)
- Bylaws drafting — avoid free templates; tailored clauses save tax & litigation
- Capital deposit — bank or neobank (Qonto, Shine, Boursorama Pro), receipt issued
- Legal notice — flat €121 (€146 overseas)
- INPI single window filing — bylaws, deposit certificate, non-conviction declaration, address proof, M0 form
- RCS registration — Kbis within 24-72h, fee €39.42
- Post-setup — pro account, RC pro insurance, social funds, VAT, IS election if relevant
5. TNS director social status#
Single-member majority director is mandatorily TNS (self-employed scheme). Contributions on net compensation:
- Health/maternity: 0 - 6.50%
- Daily allowances: 0.50%
- Basic pension: 17.75% up to PASS
- Supplementary pension: 7-8%
- Invalidity-death: 1.30%
- Family allowances: 0 - 3.10%
- CSG-CRDS: 9.70%
- Training: 0.25%
Total: 30-45% of net compensation.
For €50k net compensation:
- EURL TNS: ~€17-22k contributions
- SASU employee-equivalent: ~€38-42k contributions
EURL saving: ~€20k/year.
Limitations: no unemployment contribution (private cover needed), weaker daily allowances, slightly lower pension.
6. Optimal EURL-IS compensation#
Three levers:
- Director salary (deductible, TNS contributions)
- Dividends post-IS (30% flat tax + TNS contributions on portion > 10% capital — key difference vs SASU)
- Member current account repayment (untaxed)
Optimised scenario for €80k profit: salary €45k → ~€18k TNS + ~€5k IR; remaining profit €35k → IS 15% = €5,250; net €29,750. Net to director: ~€46k + company capitalises €24k.
7. Common mistakes to avoid#
- €1 capital (zero banking credibility)
- Copy-paste bylaws (no preemption clause, AG dispensation, missing related-party clauses)
- Forgetting IS election within 3 months
- Underestimating Y1 TNS contributions
- Home address without checking lease/condo rules
- Massive dividends ignoring 10% capital threshold (TNS surprise)
- No CPA support (short-term saving, long-term tax/legal cost)
8. EURL expansion paths#
- EURL → SARL: partial share transfer, €800-1,500, 4 weeks
- EURL → SASU/SAS: sole-member decision, transformation auditor if capital ≥ €30k, €1,500-2,500, 6-8 weeks
- EURL → Holding: contribution of EURL shares to new holding (article 150-0 B ter rollover)
9. Why work with a CPA#
A well-structured EURL saves €5-15k/year in tax and social charges vs a generic setup. Hayot Expertise offers a free setup audit including legal-form simulation, tailored bylaws, IS election arbitrage, INPI/bank/insurance coordination, post-setup follow-up.
Official sources#
- service-public.fr — EURL
- Legifrance — Commercial code L223-1
- URSSAF — TNS contributions
- BOFiP — EURL tax regime
- INPI — single window
- Bpifrance — EURL
See also: Status comparison | Set up a SASU | CPA pricing
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.
A guide written by a regulated French firm
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Samuel Hayot is a French chartered accountant and statutory auditor registered with the Paris professional bodies.
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The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
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