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For Better or Worse… EI or ME? Important news for micro-entrepreneurs…
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f you are a micro-entrepreneur (ME), this is essential reading about some small but significant changes. Nothing too onerous, and some good news, but you may want to reach for a small G&T! In a nutshell, from 15 May 2022 all MEs must add either ‘Entrepreneur Individuel’ or ‘EI’ after their personal name on all commercial documentation, as well as to the account name of their dedicated bank account e.g. Jenifer Smith EI or Jenifer SMITH Entrepreneur Individuel. This is due to a new law (Décret n° 2022725 du 28 avril 2022) which has the added bonus of now automatically protecting all your personal assets as an ME/EI from debts arising from your business activities. For those who want to understand a little more, here are some bite-sized explanations: 1. A micro-entrepreneur is not a legal business structure but rather a tax status, therefore you could not limit your liability in the way a SARL, for example, (similar to a Ltd company) can protect certain assets. From 2016 la loi Macron disallowed a debtor from being able to seize your primary home to settle any business debts – even for MEs – but they could still seize
are likely to be any issues while the change-over is taking effect. 3. Entreprise Individuelle (EI) and Micro-Entreprise (ME) have always been interchangeable: they are one and the same thing, akin to ‘self-employed’ or ‘sole-trader’. But, until now, you didn’t need, as an ME, to state that you are also an EI. Now you do.
personal assets such as savings. So, Macron did good; but this new change goes further to protect all personal assets as an EI (ME) - though bear in mind, debtors can still seize business assets, and unpaid social charges are considered personal debts!
Commercial documentation includes your website or Facebook page, your invoices, letter heads and T&Cs (yes you should have these too), and, it would seem, therefore, all promotional material too. Relatively easy for certain amendable documents; for those who have just ordered 1000 new business cards before 2. Remember, if your turnover exceeds this sudden announcement, it is going to 10K over two consecutive years, you must be a bit of a faff and potentially add open a ‘dedicated’ (separate) bank account additional costs (and (un compte bancaire our Gayle and Sam at Commercial dédié) but not etcetera will need time necessarily a ‘business’ documentation includes to amend every single account (un compte your website or Facebook advert – sorry guys!). bancaire professionnel) page, your invoices, letter Personally, I will ease which carries heads and T&Cs myself into it and show additional charges. willing; changing as The speed with which each banking much as I can with immediate effect, and organization can – or will – allow this dealing with the other aspects over time. I account-name change to what is would be surprised if the French essentially a ‘normal’ bank account is “à administration put anyone’s head on the chopping block, as long as you start the voir”. Some will refuse due to system process now. issues (their database won’t allow it); others may use it as an excuse to Note to the reader: As ever, I’ve done my pressurise you into opening a (more utmost to give you the facts and clear expensive) pro account; and some will be explanations prior to publication, but ignorant of the new law. In many cases, a you’ll need to keep an eye on updates and simple email request citing the more information as it becomes available requirement should get them to make the - check out www.entreprendre.servicechange, in others you may have to change public.fr and www.federation-autobanks. Just maybe take care to ask if there entrepreneur.fr
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