Tax Implications of Setting Up As Married Auto Entrepreneur?

Good day,


While searching for the answer to my questions, which I have not found yet, I did find this Web site and I am extremely excited about Surviving France with all of you!

In the United States I was a Conference Director for Government & Education Information Technology Conferences as well as ,and still, co-owner of a Sustainable Real Estate Company.

While living in France for the last three years, I have been able to keep my business just focused in the US. Recently I was approached by a group to prepare papers for international presentations. (proof and re-form already written in English technical and presentation papers)

They asked that I have a French business to bill and receive payments.

My wife is French and we have a current income before taxes in excess of 120k euro through her work.

Can I set-up as an Auto-Entrepreneur without a negative impact on the families finances? Can I set it up and just pay the taxes called for by the Auto Entrepreneur? Will I have to pay the higher rates based on our combined income?


Any help on if I should move forward would be great.

Thank you,

William

Thanks Tracy, saved me the effort. So we gives away our quarter does we...

Unfortunately, there has been no increase in turnover allowance, just an increase in contributions.

Thanks Emily, however I believe that like the 24.6% payment that appeared more or less unannounced right now is matched by a slightly higher amount we can earn, I need to go looking for exact details, However, William must now see that being an AE is for 'low earners' and its intent is that it is the first stage in getting a business up and running before changing status to that of a company.

I cannot remember exactly and I am sure somebody will tell you the right amount, but I think it is only around €32,600, above which you have to become a micro-enterprise.

Amazing what I do in my sleep! Mind you, it was the penthouse suite of Holiday Inn Singapore and there I was sleeping off the flight with two lovely women, my little daughters, and my wife the only one awake with camera in hand. I've never woken up since, as they say - life is a dream ;-)

Careful Emily, it is an individual enterprise and not a company. Set up a company and it is another can of very wriggly worms.

Welcome to SFN William. Good question! If your wife and yourself have no business connection whatsoever then you can. To be an AE is to be a 'sole trader' (some of us would say 'soul trader' and right too) who is working for himself and as long as you earn below the personal threshold as a self employed person. AE's pay social security and health cover via RSI/RAM and taxes (cotisations) are separate but will be a lot with €120k. Taxes are for any of us more by household than on an individual basis.

A good start is to forget the USA, any other country where you have had business dealings, in fact planet Earth and just imagine France is a planet in a universe of its own. Nice place, we love living here, but their bureaucracy, taxation system and such things are totally alien!

The basic contributions you pay on AE are the social charges (health, retirement etc), you may choose to pay the additional percentage for tax but I believe you may not be eligible due to your wife's/joint income (depends on your RFR found on your last Avis des Impositions)). In these case you will just have to declare the amount earned on your declaration des impots when it is due. More details are available at http://www.lautoentrepreneur.fr/