How to choose between freelancer, auto-entrepreneur status and portage status?

Your decision is made: you are going to start your own freelance activity! But have you thought about what position you are going to adopt? While there are several possibilities available to you, such as sole proprietorship and its types (EIRL, EURL), self-employed and wage portage statuses are undoubtedly the most widespread.

What are their respective advantages? how to choose First, be aware that there is no “best option”: each of these positions has its own advantages and we can’t recommend one of the two to all freelancers. opposite of this, Your decision will depend on your professional projectYour field of activity, etc.

Therefore it is important to know which of these two scenarios best suits your situation to know the specifics of self-employment and salary portage!

read this also : Auto-Entrepreneur: 5 Habits To Follow For Good Management

wage portage status

Benefits of Salary Portage

The main advantage of wage portage is undoubtedly the access to social security scheme for employees, where as self-employed only allows you to contribute to RSI (Social Scheme for Independence), which is less lucrative. In addition to benefiting from Social Security, you also benefit from the right to validate retirement quarters and even the right to unemployment!

The conditions for entitlement to ARE, the Return-to-Work Allowance, are the same as for “classic” workers.

The second important interest is that the employee does not waste time with accounting, as well as with administrative and tax procedures, which are managed directly by the carrying company. So he can devote himself 100% to his activity.


The wage portage employee also enjoys autonomy close to that of an entrepreneur: He finds his own clients, sets his own prices, and controls his own schedule and workload.

Finally, the management fees offered by umbrella companies are falling due to the arrival of new, very competitive companies. These management fees can vary between 3 to 10% of the amount invoiced to the client and your remuneration.

Please note: the particularly low management fee may be subject to hidden terms that you should be wary of. Be sure of the reputation of your carrier company.

Simulation of income from salary portage

ABC Portage offers an income simulator to find out in just a few minutes how much monthly salary you can make using their solution.

If you’re hesitating because you’re having trouble presenting yourself, don’t hesitate any longer and do a simulation to get a preview of your next freelance payslip!

It should also be remembered that ABC Portage is a portage company established since 2004. It provides all the necessary guarantees and even related services like prospecting assistance, development of your network etc.Wedge Portage Simulator ABC Portage

Disadvantages of Salary Portage

However, there is one major drawback to carrying: management fees. In effect, the porting company is remunerated by taking a commission on the employee’s monthly turnover: in the end, the net salary you can claim with this position will probably not exceed 50% of your turnover.

Furthermore, babywearing is not open to all businesses. In fact, it is intended primarily for professional service activities (including consulting). Personal services or crafts often cannot be performed as a salaried employee. After this one has to turn towards self-employment.

read this also : 7 Steps to Going from Employee to Freelance

self employment status

benefits of self employment

If the auto-entrepreneur does not have a company that handles administrative procedures for him, he still benefits from simplified accounting that he can easily complete. Indeed, it is enough for him to have a book to resume his recipes in chronological order. In some cases (commercial activities or accommodation services, in particular), he must also keep a register summarizing his annual purchases.

In the Register of Formalities, the auto-entrepreneur can declare his turnover very easily online on the Net Enterprise platform, which provides an automated electronic payment service. No more fussing with checks and paper declarations!

Another benefit of auto-entrepreneur status allows you to take advantage of a partial exemption from Social Security contributions. This allows you to take advantage of the reduction in Social Security contributions you are entitled to during your first year of exercise and therefore limits your expenses during this period.

Note: To be eligible, certain criteria must be met. Inform yourself in advance.

Disadvantages of Self Employed Status

With regard to turnover, the auto-entrepreneur is subject to a very low annual limit which may prove to be very penal if exceeded. However, the self-employed are not subject to VAT: a significant asset.

Note: If the products or services sold by the auto-entrepreneur are exempt from VAT, the latter still applies to its purchases. The auto-entrepreneur status is therefore more profitable for pure service activities involving little or no purchasing than for others.

Another disadvantage of auto-entrepreneur status: You don’t have the possibility to deduct expenses related to your activity. In fact, the payment of your taxes and your social contribution is based on your turnover and not your profit.

read this also : Auto-Entrepreneur: Income Tax Benefits

What’s the situation for you?

a project, to test an idea

Auto-entrepreneur status is interesting if you have the soul of a business leader.

For example, it is a very good way to test a project or idea, with a view to developing it in the long term and moving to another legal form of business that will allow you to employ staff and is no longer limited to the level Your turnover will not be there.

read this also : Freelance: Should You Specialize Or Not?

Know how to sell expertise

If you don’t plan to develop a business but want to sell your expertise and make yourself known, portage is an ideal solution as it gives you the security of the salaried system while giving you the freedom to be an entrepreneur. Ensures.

However, if your activity does not allow you to practice portage (eg personal services), then self-employment will be your only option.

Apart from your professional activity

These two positions are very interesting for having a complementary activity in addition to a traditional job.

Thus, if you adopt auto-entrepreneur status as an employee, you will continue to benefit from the normal social security scheme. However, you must contribute partially to RSI.

Here, the combination of employment and portage is more advantageous: It allows you to maintain 100% salaried status and contribute normally to the general plan.

It is also possible to combine wage portage and self-employment. For example, you can carry on your activity from the beginning of the year as a self-employed entrepreneur and continue as an employee, once you reach the turnover threshold.

read this also : Business Creation: 5 Advantages of Entrepreneurial Portage

conclusion

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