Guide · EasyCofounder
Which legal structure should you choose for a startup in France?
Your choice of legal structure determines how you bring in co-founders, raise money, pay yourself and are covered by social security. This guide compares the main forms used by founders in France, offers a decision method based on your situation and explains when and how to change structure. The French forms are named as they are, with a plain explanation, because they have no exact equivalent elsewhere, and the guide does not replace a professional’s advice on your specific case.
Updated on 6 min readBy the EasyCofounder team
In short
- For a French startup planning to bring in co-founders, investors or employee shareholders, the SAS (or SASU) is the most common choice.
- Its flexible articles allow BSPCE and BSA AIR, while a micro-entreprise or sole proprietorship suits testing an activity alone.
- The SARL or EURL suit projects that will not raise money, so the choice depends on co-founders, funding plans and social status.
Contents
- Which criteria should guide your choice of legal structure?
- Micro-entreprise, EI, EURL, SASU, SARL, SAS: what are the differences?
- Which structure suits your situation?
- What is the impact on pay and social protection?
- Can you change structure later?
- Frequently asked questions
- Glossary
- Sources
- About this guide
Which criteria should guide your choice of legal structure?
Before comparing legal forms, clarify your project: the right form follows from your answers to a few simple questions.
- Will you start alone or with others, and do you expect co-founders to join later?
- Are you considering raising money from business angels or investment funds?
- Do you want to give future employees a stake in the equity, for example with BSPCE (French employee stock options)?
- What social security status do you want for the directors, and how do you plan to pay yourselves?
- Is your business still at the testing stage, or ready to be structured?
- How much formality and how much running cost are you prepared to take on?
Micro-entreprise, EI, EURL, SASU, SARL, SAS: what are the differences?
| Form | Shareholders | Fundraising and BSPCE | Director’s social security status |
|---|---|---|---|
| Micro-entreprise | A single entrepreneur, no partners | Impossible, no share capital | Self-employed |
| Entreprise individuelle (EI, sole proprietorship) | A single entrepreneur | Impossible, no share capital | Self-employed |
| EURL (single-member limited company) | A single shareholder | Poorly suited | Sole shareholder-manager, generally self-employed |
| SARL (private limited company) | Several shareholders | Possible but inflexible, no BSPCE | Depends on the stake held by the manager |
| SASU (single-shareholder SAS) | A single shareholder | Possible once the equity is opened up (it becomes an SAS) | President treated like an employee |
| SAS (simplified joint-stock company) | Several shareholders | Well suited, BSPCE and BSA AIR possible under conditions | President treated like an employee |
The micro-entreprise is a simplified regime for sole proprietorships, with revenue caps and lighter formalities. It lets you test an activity but does not allow you to bring in a partner or raise money.
The SAS stands out for the great freedom with which its articles of association can be drafted, which lets you organise governance, share classes and the entry of investors in detail. The flip side of this freedom is that the articles must be well drafted.
In France, the SAS is governed by articles L227-1 and following of the Commercial Code, and only joint-stock companies such as the SAS can issue BSPCE: a SARL cannot.
Which structure suits your situation?
You are testing an idea on your own
The micro-entreprise may be enough to invoice a few first services or pre-sales, provided you plan to move to a company as soon as the project takes shape or a co-founder joins. Our guide to validating your startup idea helps you choose the right moment.
You are launching a startup alone that will raise money
The SASU is often chosen, because it becomes a standard SAS as soon as a second shareholder or an investor joins, without changing legal form.
You are starting with co-founders
The SAS is the form most used by startup founding teams. Our guide to the French SAS company details the clauses of the articles of association, how power is shared and how they fit with the shareholders’ agreement.
You plan neither fundraising nor BSPCE
The SARL or EURL can suit a business funded by its own revenue, with a framework more tightly set by law and a manager whose social security status depends on their stake.
A founder starts as a micro-entrepreneur, selling consulting services that fund the development of her software. When a technical co-founder joins her and a business angel shows interest, they set up an SAS into which the software is contributed or in which it is developed, and keep the micro-entreprise running long enough to finish the current assignments.
Can you change structure later?
Yes, a business can evolve: a micro-entrepreneur can set up a company and transfer their activity into it, an SARL can convert into an SAS, and an SASU becomes an SAS as soon as a second shareholder joins.
- 1Identify what triggers the change: a co-founder joining, a fundraising project, hiring employees who will get a stake in the equity.
- 2Have a professional assess the tax, social security and contractual consequences of the change.
- 3Organise the transfer of the business, contracts, brand and code to the new structure if needed.
- 4Draft the new articles of association and, if there are several of you, a shareholders’ agreement.
- 5Complete the conversion or incorporation formalities and inform customers and partners.
Frequently asked questions
What is the best legal structure for a startup in France?
There is no ideal structure for everyone, but the SAS or SASU is the most common choice for a startup that plans to bring in co-founders, raise money or grant BSPCE, thanks to the flexibility of its articles of association.
Can you raise money as a micro-entreprise?
No. A micro-entreprise has no share capital and therefore cannot take in investors. You need to set up a company, most often an SAS, before any fundraising.
SASU or EURL to start alone?
The SASU is often preferred for a startup that is considering fundraising or bringing in co-founders, while the EURL can suit a business funded by its revenue. The director’s social security and tax status differs between the two, so run a simulation with a chartered accountant.
Can an SARL issue BSPCE?
No. BSPCE are reserved for certain joint-stock companies, so an SARL that wants to issue them should consider converting into an SAS. Our guide to [BSPCE](/en/co-founder/bspce-stock-options) details the conditions.
Glossary
- SAS
- Société par actions simplifiée, a flexible French joint-stock company widely used by startups with several shareholders.
- SASU
- An SAS with a single shareholder, which becomes a standard SAS as soon as a second shareholder joins.
- Micro-entreprise
- A simplified French regime for sole proprietorships, subject to revenue caps.
- Assimilé salarié
- The social security regime of a paid SAS president, close to that of employees but without unemployment insurance.
Sources
Official texts and reference pages used for this guide
- Service-public.fr, choosing the legal form of your company
- Service-public.fr, simplified joint-stock company (SAS)
- Service-public.fr, single-shareholder SAS (SASU)
- French Commercial Code, Article L227-1 (Légifrance)
These are French official sources: the rules described apply to companies governed by French law.
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Further reading
- French SAS with co-foundersSetting up a French SAS with co-founders: why startups choose it, SAS vs SARL vs SASU, key clauses in the articles, the shareholders’ agreement and steps.
- Founder salaryHow startup founders pay themselves: unpaid at first, salary vs dividends, when to start a salary, pay after fundraising and equal pay among co-founders.
- Understanding BSPCEBSPCE explained: what they are, which companies qualify, how they work from grant to sale, how they differ from free shares and BSA, and building a plan.
- Quitting your job to start upQuitting your job to start a startup: when to leave, exit options, your finances, obligations to your employer and the transition with co-founders.
About this guide
This guide was written by the EasyCofounder team — a platform that connects founders, talents and startups — and was last updated on November 9, 2026. It draws on common startup practice and on the questions our members ask.
How we write, review and update our guides is explained on our About page.
It provides general guidance and is not legal, tax or financial advice. For your own situation, consult a qualified professional (lawyer, accountant) and the official resources available in your country.
What is the impact on pay and social protection?
The president of an SAS or SASU who is paid is in principle covered by the regime for those treated like employees (assimilés salariés), with social protection close to that of employees but no unemployment insurance. The majority manager of an SARL and the sole proprietor fall under the self-employed regime, with different contributions and entitlements.
Our guide to founder salary goes deeper into the choice between salary and dividends and the right time to start paying yourself.