Need to Know About Auto Entrepreneur 2021 status

What do you need to know mainly about the 2021 auto entrepreneur status?

To further encourage business creation, the state has enacted a law to encourage workers to adopt this good practice. This is how the self-employed status was born. The latter comes with several tax and financial advantages.

However, it is important to take certain precautions before embarking on this. So what should we know about this diet? What are its benefits and drawbacks? Focus!

The self-employed status was created by the law on the modernization of the economy of August 4, 2008. Accessible to all and allows individuals to exercise, as an ancillary or main activity, a self-employed activity. 

Access conditions and eligible activities
Certain conditions are necessary to access this plan. They may vary depending on the status (student, employee, company director, etc.). In general, you must be a natural person of full age or an emancipated minor. In addition, you must reside in France, have French or European nationality, have the required experience and a clean criminal record.

This law therefore allows you to have a business while continuing to practice your profession or even your training. Under the different statutes, several activities can be carried out by the auto entrepreneur. These include artisanal and commercial activities. The liberal professions attached to the CIPAV (Interprofessional Pension Fund and Old Age Insurance) are also part of it.

To assist you in the procedures, public services such as URSSAF are accessible. It is important to surround yourself with these as they will help you manage your taxes and report your income.

Plan changes in 2021
For this year, many changes have been made. Among the most important, it is necessary to note the decrease in the Contribution Foncière des entreprises (CFE). The maintenance of support measures in the face of Covid and the extension of paternity leave are also new.

Free calls to public services such as URSSAF have also been decreed. However, the social contribution rate and turnover ceilings remained intact. The first is 12.8% for business sales activities and 22% for services. The second is 176,200 euros and 72,600 euros.

Advantages and disadvantages of the Auto Entrepreneur 2021 Status
Self-entrepreneur status has many advantages on several levels. These include ease of launching your project and exemption from VAT. You will also benefit from basic accounting obligations, state aid and less complex taxation. In addition, you will also be in control of your time. You can go on vacation whenever you want.

However, this diet has some limitations. For example, you will not be able to bring in a new partner. In addition, you are forced to subscribe to a pension system and insurance. You should not also exceed the limit set for turnover.

Ultimately, the self-employed status has several advantages, but also drawbacks. However, it is the ideal solution to create your structure while carrying out a parallel activity.

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