Can I switch from micro-entreprise to a company mid-year?

Yes, but the switch involves setting up a new legal structure, transferring or contributing the business, and formalities such as registration, bookkeeping and VAT where applicable. Plan the timing with your accountant.

Is a company always better past the micro ceiling?

Not automatically. Above €83,600 of turnover, the micro-entreprise regime falls back to the régime réel, which changes the comparison. The right answer then mostly depends on the level of your real expenses and your remuneration strategy.

Does the versement libératoire change the comparison?

It can lower the income tax paid under micro-entreprise, subject to a reference income condition, which sometimes narrows the gap between the two regimes. See our dedicated article on the versement libératoire.

What expenses are covered by the flat allowance?

All of them: the micro-entreprise flat allowance replaces any deduction of real expenses, regardless of their actual amount. That is why a high-cost activity is structurally penalised under micro.

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Compliance7 min read

Micro-entreprise or company in 2026: which structure to choose

Published July 20, 2026

The micro-entreprise regime is popular for its simplicity, but it is not always the most advantageous option. Past a certain turnover, or once real expenses grow, a company subject to corporate tax can lower the overall tax bill. Here is how the two compare in 2026.

Two opposite tax logics

The micro-entreprise regime taxes turnover after a flat allowance, with no option to deduct actual expenses. A company subject to corporate tax (impôt sur les sociétés, IS) taxes real profit — turnover minus actual costs — then applies separate taxation on what the owner withdraws, as remuneration or dividends. The right choice depends on your real costs and the scale of your activity.

Micro-entreprise BNC: simplicity and a flat allowance

Under the micro-entreprise BNC regime (liberal professions), the tax authority applies a flat allowance of 34% on turnover received (minimum €305): only 66% of turnover is subject to progressive income tax. Alongside that, URSSAF social contributions amount to 21.1% of turnover received, unrelated to the expenses actually incurred. The regime remains available as long as turnover does not exceed €83,600 (the BNC and BIC-services ceiling for 2026).

Flat allowance of 34% on turnover (BNC), minimum €305
Social contributions of 21.1% of turnover received
Turnover ceiling: €83,600 (BNC and BIC services)
No deduction of real expenses: the allowance replaces them entirely

The company under corporate tax: SASU or EURL

A company subject to corporate tax pays 15% on profit up to €42,500 (conditions apply: turnover under €10M, capital at least 75% held by individuals, fully paid up), then 25% above that. The owner can then choose between remuneration (deductible from the company profit but subject to social charges) and dividends, taxed at the 31.4% flat tax (PFU). Unlike the micro-entreprise, a company deducts its real expenses before tax.

Corporate tax at 15% up to €42,500 of profit, then 25% above
Dividends taxed at the 31.4% flat tax, after corporate tax
Deduction of real expenses, with no flat allowance
A choice between remuneration and dividends for the payout

The tipping point

A company generally becomes attractive once real expenses significantly exceed the micro-entreprise flat allowance (34% of turnover under BNC), or once turnover approaches the €83,600 ceiling. For a low-cost activity with moderate turnover, the micro-entreprise usually remains lighter on contributions and admin. For a profitable activity with significant real costs — equipment, subcontracting, premises — a company lets you pay tax only on net profit, then optimise the payout between remuneration and dividends.

Frequently asked

Can I switch from micro-entreprise to a company mid-year?: Yes, but the switch involves setting up a new legal structure, transferring or contributing the business, and formalities such as registration, bookkeeping and VAT where applicable. Plan the timing with your accountant.
Is a company always better past the micro ceiling?: Not automatically. Above €83,600 of turnover, the micro-entreprise regime falls back to the régime réel, which changes the comparison. The right answer then mostly depends on the level of your real expenses and your remuneration strategy.
Does the versement libératoire change the comparison?: It can lower the income tax paid under micro-entreprise, subject to a reference income condition, which sometimes narrows the gap between the two regimes. See our dedicated article on the versement libératoire.
What expenses are covered by the flat allowance?: All of them: the micro-entreprise flat allowance replaces any deduction of real expenses, regardless of their actual amount. That is why a high-cost activity is structurally penalised under micro.

This article is general information for a one-person company (SASU/EURL or micro-entreprise), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.