Last modified on July 18, 2021
Are you looking to get started in the e-commerce sector? In this case, you should not neglect registering your business with the relevant authorities. This will save you from legal hassles while enjoying certain advantages. However, it is important to choose the status of your business carefully.
Why declare yourself when launching into e-commerce or dropshipping?
Declaring an e-commerce business brings a lot of considerable advantages. Moreover, you do not have to wait months after the start of activities to declare yourself. Note that failing to declare activities can expose you to certain sanctions. This may particularly concern VAT and customs fees. It is also important to declare your bank accounts for your dropshipping business to avoid problems with your personal accounts. You should not neglect the declaration of your turnover. This is valid for all commercial activities, even for online sales. In this way, you will have nothing to worry about your annual income or your financial assets. These numerous declarations should not be taken lightly, just like the legal registration of your business. Note that the registration of an e-commerce site is governed by law 2004-575 of June 21, 2004.
Choose your status according to your goals
The choice of status should not be made at random to create an e-commerce business. Note that you have the possibility to choose between the following options. It depends on the objectives you wish to achieve with your business.
If you are just starting out or it is a supplement to your income: opt for a micro-enterprise
Some people do not want to make e-commerce their main source of income. To do this, simply choose a micro-enterprise status. This option allows you to test above all whether the business can be exploited to transform it into a main activity in the future. Everything can be done online if you wish.
The assessment of taxes will not be done in real terms. This generally depends on the turnover you will make. You will also not have to worry about VAT. Indeed, you will not be obliged to pay it to the Public Treasury. For a new entrepreneur, choosing this status represents a significant time saving for the management of the company.
With the status of micro-enterprise, you could apply a more affordable pricing policy than your competitors. You will even have the opportunity to improve your company’s margin. In any case, your only obligation remains the sales book. Added to this is the declaration of turnover every 3 months.
If you want to get started while limiting the risks: opt for EIRL or EURIL
Do you want to obtain a status for your dropshipping business, but you have lingering doubts? In this case, you could choose between the EIRL and EURIL statuses. These two options can be used to limit the risks in case you still have some doubts.
- EIRL : you could perfectly reduce the risks that could be linked to your individual assets by opting for the EIRL status. Moreover, this option allows you to distinguish two separate assets. Indeed, you can set up an asset of affection relating to your professional activity and a second asset that will not be affected. This status thus offers good flexibility within the company. Note that your personal assets will not be affected if your company ever suffers debt.
- EURL : this option allows you to propose a fairly ambitious business plan while anticipating certain risks. Indeed, you will have an easier time protecting your personal assets by choosing this status. Choosing the EURL is also the best way to show your seriousness to your competitors as well as target customers. Which implies that you will easily gain credibility on the market. If necessary, this status offers the opportunity to bring in the partners you need.
If you have an ambitious project and want to make it your main activity: SAS, SASU or SARL
You have the choice between the following three statuses if you want to create an e-commerce business as your main activity.
- SAS : choosing this status is the best way to open up a fairly substantial capital while effectively managing relationships. You could then customize your business according to your needs. Note that you will be subject to the employee regime even as a manager. In addition to this, you will be entitled to good social security coverage. This status offers good flexibility after registering your business.
- SASU : registered as the sole partner in your company, the SASU status will guarantee you great flexibility while ensuring the smooth running of the company. In addition, choosing this status requires you to pay contributions to the RSI. At the same time, you should pay social security contributions. In addition, you are not required to have a minimum capital to set up your company. It is perfectly possible to separate your personal assets from your company’s assets.
- SARL : the SARL status will place you as a self-employed worker. You will also be subject to contributions at the SSI level. More precisely, the SARL offers you good social security coverage. This type of status may be recommended if you want to create an SME or a VSE. This option may prove advantageous if you plan to set up a family business. The SARL displays significant simplicity while offering you access to several features.
Take steps to create your business
The administrative procedures for creating a dropshipping business are not difficult to follow. To do this, simply follow these steps to create your business properly:
- The choice and drafting of status: Take the time to choose the status that suits you best for the creation of your e-commerce. You could also benefit from a support service for writing the status.
- The deposit of share capital: This step involves transferring the funds intended for your business to a depository organization. For this, you have the choice between a bank or another organization.
- Appointment of the manager: The appointment of directors can be done according to the status you choose. Note that your company can have one or more directors. The notice of incorporation must display information concerning the first directors.
- Contacting the CFE: The CFE takes care of centralizing the elements concerning your registration request. These documents will then be transferred to the responsible organizations such as INSEE.
- Publication of the legal notice: Don’t forget to publish the legal notice of the creation of your company. This requires the display of certain obligations, such as the legal form or corporate purpose of your company.
- The identification number: The last step is to register your company to obtain a SIRET number and a SIREN number. You will also obtain an APE code after registering your company.
In summary
It can be said that creating an e-commerce business can be done quickly, contrary to what you might imagine. In any case, you must take the time to choose the status you wish to apply for your business. Know that you can request a support service from a legal expert in case you are afraid of not getting by. The latter will help you make the right decisions while accompanying you for all the procedures as well as in the drafting of your T&Cs.
Passionate about the web and entrepreneurship, I founded Digitiz in 2016. My goal is to share my experience with you and save you time in choosing your tools.
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