EURL or SASU 2026: complete guide to choosing

Setting up a single-member company is often the first step for many French entrepreneurs. Faced with this decision, two legal forms dominate: the EURL (Entreprise Unipersonnelle à Responsabilité Limitée, a single-member limited liability company) and the SASU (Société par Actions Simplifiée Unipersonnelle, a single-shareholder simplified joint-stock company). Each has distinct advantages, but also constraints that should be analysed carefully before choosing a legal form. This decision will have a lasting impact on the management, taxation and development of your business.

The two legal forms compared

The EURL: a simplified limited liability company

The EURL is the single-member version of the traditional SARL (French limited liability company). This legal form allows a sole entrepreneur to set up a company with a freely determined share capital, even a token amount. The sole member's liability is limited to the amount of their contributions, which protects their personal assets.

Managing an EURL remains relatively simple, with lighter administrative formalities than multi-member companies. The manager, who is generally the sole member, has wide freedom in conducting day-to-day business.

The SASU: flexibility and scope for growth

The SASU is the single-shareholder form of the SAS (Société par Actions Simplifiée, a simplified joint-stock company). This structure appeals particularly to ambitious entrepreneurs because of its considerable flexibility in the articles of association and its prospects for growth. The president of the SASU may set the operating rules with almost complete freedom, subject to compliance with mandatory statutory provisions.

This legal form makes it much easier for new investors or partners to join, and allows a natural transformation into an ordinary SAS without the formalities of dissolution and re-incorporation.

Comparison of tax regimes

Taxation of the EURL

The EURL and the SASU differ significantly for tax purposes, and these differences should be analysed in light of your situation. By default, the EURL falls under the tax transparency regime: profits are taxed directly in the hands of the sole member, as industrial and commercial profits (BIC) or non-commercial profits (BNC) depending on the activity.

The sole member may nevertheless opt for corporate income tax, subject to certain conditions and formalities. This option can be worthwhile to optimise the overall tax burden, particularly where the company's profits are high.

Taxation of the SASU

The SASU is automatically subject to corporate income tax. Profits are therefore taxed at the standard corporate income tax rate, with a reduced rate of 15% on the first €42,500 under certain conditions. The president pays income tax only on the remuneration actually received.

This mechanism allows a useful tax optimisation: undistributed profits remain in the company, taxed at the corporate income tax rate, while the entrepreneur bears income tax only on the sums they pay themselves.

Social security regime of the manager

Social protection in an EURL

The social security status of the manager of an EURL depends on their situation in relation to the other members. Where the manager is the sole member or holds more than 50% of the shares, they fall under the regime for self-employed workers (TNS). This means affiliation to the social security scheme for the self-employed.

Social security contributions are calculated on the company's profits, even if those profits are not actually distributed. The overall contribution rate is around 45% of income, but it gives entitlement to full social protection, including sickness, retirement and family allowances.

Social protection in a SASU

The president of a SASU has the status of an executive treated as an employee. They therefore contribute to the general social security regime and receive social protection almost identical to that of employees, with the exception of unemployment insurance.

Social security contributions, of about 82% of net remuneration, are due only on remuneration actually paid. If the president pays themselves no salary, no social security contributions are due, but they receive no social protection.

Management and administrative formalities

Ease of managing an EURL

The EURL is distinguished by the simplicity of its day-to-day management. Routine decisions may be taken freely by the manager without particular formality. For important decisions amending the articles of association, the sole member draws up minutes recording their decisions.

Accounting follows the ordinary rules for commercial companies, with an obligation to prepare annual accounts and file them with the registry of the commercial court (greffe du tribunal de commerce). This obligation applies even if the business falls under the micro-entrepreneur regime for tax purposes.

Flexibility of the SASU's articles of association

The SASU offers considerable freedom in its articles of association, allowing the operating rules to be adapted to the entrepreneur's specific needs. This flexibility is a major asset in structuring the business according to a precise strategic vision.

However, this freedom requires more complex articles of association to be drafted. The formalities for incorporation and amendment may also be more costly than for a standard EURL. The drafting of the articles of association and the filing formalities on the one-stop shop (guichet unique) are described in our guide to company formation.

Transfer and development of the business

Prospects for development of the EURL

The EURL can become an ordinary SARL when new members join. This transformation requires an amendment to the articles of association and certain formalities, but remains relatively simple to carry out. For a structure with several members, governance and decision-making in each of the two forms are compared in our article on the choice between a SAS and a SARL.

The transfer of EURL shares (parts sociales) attracts registration duties of 3% after allowance, which can be a significant cost on large transfers.

Ease of development of the SASU

The SASU has undeniable advantages for the development of the business. Conversion into a SAS takes place naturally through the entry of new shareholders, without any change of legal form. This flexibility makes fundraising and the admission of investors easier.

Shares can be transferred more easily than the shares of an EURL, with registration duties limited to 0.1% of the sale price. This favourable taxation encourages transfers and the mobility of capital.

Criteria for choosing between an EURL and a SASU

The entrepreneur's profile and objectives

The choice between a SASU and an EURL depends largely on your business objectives. If you are planning rapid growth with the entry of investors, the SASU is the natural choice. For a stable activity with limited financing needs, the EURL may be entirely sufficient. These criteria, in particular income tax or corporate income tax and the manager's social protection, are covered in our comparison of the SASU and the EURL.

Your personal situation also affects this decision. An entrepreneur wishing to optimise their social protection will often favour the status of executive treated as an employee under the SASU. Conversely, one seeking maximum simplicity of management will turn to the EURL.

Financial impact of each form

Financial analysis is a decisive factor in choosing a legal form. For modest income, the TNS regime of the EURL may prove cheaper. Beyond a certain threshold, the SASU generally allows better optimisation through control over social charges.

This analysis must take into account not only direct costs (contributions, taxation) but also indirect costs such as management complexity or the cost of the advice required.

Practical cases and typical situations

When to prefer the EURL

The EURL is particularly suitable for liberal professions, craftspeople and traders seeking a simple, well-established structure. Entrepreneurs wishing to start quickly with minimal formalities appreciate this legal form.

It is also relevant for family holding company activities or property projects that do not require significant capital.

When to opt for the SASU

The SASU is the natural choice for innovative projects requiring external financing or complex partnerships. Ambitious entrepreneurs planning rapid growth or a future sale favour this structure.

Consultants and high value-added service providers also value the flexibility of the articles of association and the modern image conveyed by this legal form.

Choosing between an EURL and a SASU requires a thorough analysis of your personal situation, your business objectives and the constraints of your sector. Each legal form has specific advantages that may change with circumstances. This decision, which shapes the future of your business, warrants tailored professional support. Do not hesitate to consult a French lawyer practising in business law for advice suited to your particular situation and to refine your choice of legal form.