SASU vs EURL: Complete Guide 2026 to Choose

Choosing between a SASU and an EURL: the decisive criteria in 2026

Setting up a single-shareholder company invariably raises the same question: SASU or EURL? The decision shapes the business, tax and social framework for years to come. The differences between the two forms are not limited to the social security regimes: they affect governance, transfer, taxation and even development strategy. This guide sets out the objective criteria to inform your choice between the single-shareholder simplified joint stock company (SASU) and the single-member limited liability company (EURL).

Definitions and legal framework: SASU and EURL compared

SASU: flexibility and development

The SASU, governed by Articles L. 227-1 et seq. of the French Commercial Code, is a simplified joint stock company (SAS) with a single shareholder. It allows almost complete freedom in the articles of association as to the organisation of powers and governance. The president, who may be an individual or a legal entity, runs the company without any statutory limit on his or her powers, subject to the provisions of the articles of association.

This form gives the manager the social security status of a salaried-equivalent officer (assimilé salarié), with affiliation to the general social security scheme and to AGIRC-ARRCO for supplementary pensions.

EURL: framework and tax optimisation

The EURL, defined in Articles L. 223-1 et seq. of the French Commercial Code, is a single-member SARL (French limited liability company). It operates largely like an ordinary SARL, with a manager whose powers are delimited by law and by the articles of association.

The social security regime of the manager who is the sole member places him or her among the self-employed, covered by the social security scheme for the self-employed (SSI) for sickness and maternity and by CIPAV or SSI, depending on the activity, for pensions.

Tax regime: income tax or corporate tax, major consequences

Taxation of the EURL: transparency by default

Where the sole member is an individual, the EURL falls by operation of law within the tax regime for partnerships: profits are taxed directly to income tax in the name of the member, in the BIC (industrial and commercial profits) or BNC (non-commercial profits) category depending on the activity. This transparency avoids double taxation of the company and the member. A loss from a professional activity carried on with the personal, continuous and direct participation of the member is set off against his or her overall income, with any excess carried forward over the following six years; the annual limit of €10,700 provided for in Article 156 of the French General Tax Code (CGI) applies only to property income losses.

The option for corporate tax remains available. It may be revoked up to the fifth financial year following the one for which it was exercised; failing renunciation within that period, it becomes irrevocable, and a company that has renounced it may not opt again (Article 239 of the CGI).

SASU: corporate tax by operation of law, temporary option for income tax

The SASU is subject to corporate tax by operation of law, save for a temporary option for income tax, open for five financial years to companies less than five years old that meet the conditions of Article 239 bis AB of the CGI. The reduced rate of 15% applies to the portion of profit not exceeding €42,500 where turnover does not exceed €10 million and the capital, fully paid up, is held at least 75% by individuals; the standard rate of 25% applies above that amount (Article 219 of the CGI).

Taxation at the level of the company calls for an optimisation strategy through remuneration and dividends in order to avoid double taxation. The comparison of the tax and social security regimes and of the formalities specific to each form is covered in our guide to choosing between an EURL and a SASU.

Social protection: salaried-equivalent officer versus self-employed

SASU: enhanced social cover

The president of a SASU has the status of salaried-equivalent officer as soon as he or she receives remuneration. Affiliation to the general scheme provides:

• Sickness and maternity insurance identical to that of employees
• Unemployment insurance possible under conditions through a separate employment contract
• Basic pension under the general scheme plus AGIRC-ARRCO supplementary pension
• Collective provident cover possible

Social security contributions amount to approximately 82% of net pay, taking employer and employee contributions together.

EURL: the self-employed regime

The manager who is the sole member of an EURL falls within the SSI, with contributions of approximately 45% of taxable profit. Social protection comprises:

• Sickness and maternity insurance for the self-employed (reimbursements identical to the general scheme since 2018)
• No unemployment insurance
• Basic pension for the self-employed plus supplementary pension depending on the activity
• Optional provident cover of the Madelin law type

Calculating contributions on taxable profit rather than on remuneration can create cash-flow timing differences with provisional calls for payment.

Manager's remuneration: strategies and optimisation

Optimisation in a SASU: remuneration and dividends

The SASU allows fine management of the president's remuneration. A moderate remuneration limits the high social security contributions, supplemented by dividends subject to the single flat-rate levy of 31.4% (12.8% income tax and 18.6% social levies) or, on option, to the progressive income tax scale with a 40% allowance. The president's status and the taxation of the single-shareholder company are detailed in our complete guide to the SASU for the sole shareholder.

Example: a president who pays himself or herself €36,000 a year bears approximately €29,500 in total social security charges. A supplement of €20,000 in dividends generates €6,280 in levies at the overall rate of 31.4%.

EURL subject to income tax: fictitious remuneration prohibited

In a fiscally transparent EURL, the distinction between remuneration and dividends disappears: the whole profit constitutes the manager's income, taxable to income tax. Social security contributions apply to that profit, except for the deductible actual remuneration of a collaborating spouse or of employees.

This simplicity avoids complex optimisation but may generate social security contributions on undistributed profits.

Transfer and disposal: different treatment of the assets

SASU: transfer by sale of shares

The sale of SASU shares falls within the capital gains regime for transferable securities and corporate rights. The allowance for length of holding (50% from two to eight years, 65% beyond) applies only to securities acquired before 1 January 2018, where the taxpayer has opted for taxation at the progressive scale (Article 150-0 D, 1 ter, of the CGI). A manager who retires may also benefit, under conditions, from a fixed allowance of €500,000 (Article 150-0 D ter of the CGI).

Valuation relies on standard financial methods (earnings multiples, discounted cash flows), which facilitates negotiations with investors.

EURL: sale of company shares (parts sociales)

The sale of EURL shares falls, like the sale of SASU shares, within the capital gains regime for transferable securities and corporate rights (Article 150-0 A of the CGI): single flat-rate levy of 31.4% or, on option, the progressive scale, the allowance for length of holding applying only to securities acquired before 1 January 2018.

The statutory approval clauses (clauses d'agrément) applicable in a SARL may complicate a sale, even though the sole member sets them freely in the articles of association.

Development and conversion: anticipating growth

SASU: simplified opening of the capital

Converting a SASU into an SAS with several shareholders requires only a partial sale of shares and an amendment of the articles of association. This flexibility facilitates the entry of investors or operational partners without calling the legal structure into question.

Governance mechanisms (committees, directors, statutory auditors) adapt to growth without any major legal break.

EURL: heavier conversion

The entry of a second member automatically converts the EURL into a SARL with several members. This conversion may require:

• Complete revision of the articles of association to incorporate the majority rules
• Possible appointment of a statutory auditor depending on the thresholds
• Adjustment of the tax regime if corporate tax had not been chosen

Formation formalities: comparable complexity

SASU: tailor-made articles of association recommended

The freedom afforded by the SASU's articles of association justifies legal assistance to optimise governance. Standard articles remain possible but limit the specific features desired (decision-making procedures, powers of the president, optional approval clauses). Drafting the articles, depositing the capital and publishing the notice of incorporation are covered in our guide to company formation.

The minimum share capital of one euro makes it possible to start with limited funds, but capital suited to the business strengthens commercial credibility.

EURL: standardised formalities

The EURL has articles of association that are more closely regulated by law, which simplifies drafting. The minimum share capital of one euro comes with the same practical considerations as in a SASU.

The tax option for corporate tax must be exercised within the first three months of the financial year concerned, in order to avoid being subject to the unwanted transparency regime.

Accounting and reporting obligations

Common obligations and specific features

Both forms bear identical accounting obligations: keeping commercial accounts, preparing annual accounts and filing them with the registry. The appointment of a statutory auditor is triggered at the same thresholds.

The SASU, however, generates heavier social security obligations where the president is remunerated: monthly social declarations (DSN) and payment of contributions in accordance with the URSSAF schedule.

Differentiated tax reporting

The EURL subject to income tax includes its results in the manager's personal return (form 2042-C-PRO), which simplifies its obligations. The SASU files a separate tax package (forms 2065 et seq.) and bears the territorial economic contribution.

Practical cases: SASU or EURL depending on the profile

Independent consultant with high growth potential

A consultant generating €80,000 in turnover with a 70% margin will often prefer the EURL subject to income tax: social security contributions on €56,000 of profit (approximately €25,000) and taxation at the personal scale.

The SASU becomes relevant if the consultant plans to hire quickly or to bring in investor partners.

Property-holding activity with irregular income

A property dealer (marchand de biens) carrying out occasional large transactions will favour the SASU to smooth taxation: taxation of the company at the reduced rate, then gradual distribution through dividends.

The EURL subject to income tax would concentrate taxation in the year of the transaction, at high marginal brackets.

Family transfer project

A business intended to be passed on to children is better suited to the SASU: gradual sale of shares with allowances for length of holding and objective valuation through financial methods.

Frequently asked questions

Can an EURL be converted into a SASU, or the reverse?

The conversion of an EURL into a SASU, or the reverse, remains possible. Where properly carried out, it does not create a new legal entity (Article L. 210-6 of the French Commercial Code) and is not a dissolution followed by a creation; it does not require the consent of creditors. For tax purposes, it entails the consequences of a cessation of business only if it is accompanied by a change of tax regime, for example the move from an EURL subject to income tax to a SASU subject to corporate tax, subject to the relief provided for where the accounting entries are not altered (Articles 202 ter and 221 of the CGI). Careful consideration beforehand remains necessary.

SASU or EURL for a rental property portfolio?

In an EURL subject to income tax, the profit is taxed in the name of the sole member according to the nature of the activity. For an unfurnished letting falling within property income, the property income loss arising from expenses other than loan interest is set off against overall income up to an annual limit of €10,700, the surplus and the portion relating to interest being set off against property income of the following ten years (Article 156, I, 3° of the CGI). For a non-professional furnished letting, losses may be set off only against income of the same nature over the following ten years (Article 156, I, 1° ter). The SASU confines losses to the company. The benefit of the EURL therefore depends on the nature of the letting and the situation of the member.

Can the spouse take part in the single-shareholder company?

The spouse may become an employee of the SASU or of the EURL provided there is genuine activity. In an EURL, the status of collaborating spouse provides social security cover without deductible remuneration. These arrangements require a case-by-case analysis depending on the family and asset situation.

What is the impact of withholding tax on the choice?

Withholding tax applies to the remuneration of a SASU president as it does to ordinary salaries. In an EURL subject to income tax, current-year instalments on BIC/BNC replace withholding tax. This difference in timing may affect cash flow without changing the final tax charge.

VAT: identical rules for a SASU and an EURL?

VAT rules apply identically to both forms depending on the activity and the turnover thresholds. The choice between SASU and EURL does not influence the applicable VAT regime, which is determined by the nature of the activity and the amounts achieved.

How do running costs compare?

The EURL generally generates lower costs: no social security charges without actual remuneration, and simplified accounting under tax transparency. The SASU bears social security charges as soon as the president is remunerated, together with heavier reporting obligations. The difference may reach €2,000 to €3,000 a year depending on the activity.

Protection of personal assets: is there a difference?

Both forms limit the liability of the sole member to the amount of his or her contributions, except in the case of management fault or personal guarantees. This identical protection is not a criterion for choosing between a SASU and an EURL. The distinction lies in the methods of management and in tax and social security optimisation.

Conclusion: a tailored strategic decision

The choice between a SASU and an EURL depends primarily on three factors: the remuneration strategy sought, the prospects for development and transfer, and the acceptance of administrative complexity. The EURL subject to income tax suits stable, highly profitable businesses seeking immediate tax optimisation. The SASU is the better choice for evolving projects requiring flexible governance and enhanced credibility with third parties.

Before any final decision, a quantified simulation over three financial years, taking into account your personal and asset situation, remains indispensable. The tax and social security stakes justify professional support suited to your specific objectives.