Freelance status: which one should you choose?

You’ve got an idea, you’ve decided to take the leap and embrace freedom: you’re ready to go freelance. But before you officially get started, there’s one crucial step to think about: choosing your freelance status.

Contrary to what many people believe, the term “freelance” is not a legal status in itself. It refers to a way of working, and to exist in the eyes of the law and administration, you need to select a suitable legal structure. This choice is a big one: it will determine your taxes, your social protection, how you declare your income, and sometimes even how you manage client relationships. In short, it’s a key step for everything that follows.

In this guide, you’ll find a detailed comparison of the different freelance statuses to help you make sense of it all.

But before you get started, read our article to learn everything you need about working as a freelancer.

Summary 

1. Freelance status: understanding the legal framework
2. The different freelance statuses
3. Financial support based on your freelance status
4. How to choose your freelance status
5. FAQ

Freelance status: understanding the legal framework

Freelancing means carrying out a professional activity entirely independently, with the freedom to manage your own time and projects. It can include a wide range of roles, such as:

• Intellectual activities: writing, consulting, design, etc.
• Technical activities: development, IT, etc.
• Manual or craft-based activities: repairs, handmade creations, etc.

Whatever the nature of your work, choosing a legal status is essential for operating legally. It’s this legal framework that allows you to issue invoices, declare your income, and also ensures your rights and social security are protected.

Your freelance legal status forms the backbone of your activity: it governs everything. From how you manage your income to your social and tax obligations and administrative procedures, everything is shaped by this status. That’s why it’s so important to choose the right one from the start, to avoid complications later on and grow your business with confidence.

To get a clear comparison of the different freelance legal statuses available in 2025 and choose the best fit for your needs, check out Becoming a freelancer: everything you need to know.

The different freelance statuses 

The micro-entreprise

The micro-entrepreneur status is often the natural first step for going freelance. It’s appealing thanks to its simplicity and how quick it is to set up. You can complete the administrative steps in just a few clicks, with minimal start-up costs, and benefit from a simplified and advantageous tax regime.

However, be aware: this freelance status comes with an annual turnover cap (€77,700 for service-based work, €188,700 for commercial activities). This cap can limit your growth. That said, it’s rarely an issue if you’re testing your business idea or keeping freelancing as a side project alongside full-time work.

You may also be eligible for VAT exemption below a certain threshold, which makes your first client relationships simpler and gives you a valuable financial advantage, especially when starting out.

Finally, one of the big benefits of this freelance status is the simplified admin. You won’t be required to submit annual accounts, for example. Your social contributions will be calculated as a percentage of your actual turnover: if you don’t invoice, you don’t pay. This format gives you great flexibility in managing your cash flow. As for taxes, you can opt for a flat-rate payment that allows you to pay your income tax at the same time as your social contributions, which simplifies your tax admin even further.

All in all, the micro-entreprise status is ideal if you want to focus on your work without getting lost in paperwork.

For each of these freelance statuses, you can open a free account with Vivid to access all the tools you need to manage your self-employed activity with ease! 

Advantages of this freelance status:

• Quick and simple administrative procedures
• Light taxation and simplified accounting
• Social contributions based on actual turnover
• VAT exemption below a certain threshold
• Ideal for testing an idea or earning extra income

Disadvantages of this freelance status: 

• Turnover cap limits growth
• No deduction of actual business expenses
• Limited social protection compared to other statuses

Sole entrepreneurship (entreprise individuelle - EI)

Switching from the micro-entrepreneur status to a sole trader structure gives you more responsibility for managing your business — and more autonomy.

As a sole trader, you can deduct actual business expenses such as equipment, travel or office rent. This reduces your taxable base and your social charges, which is a big advantage if you have significant costs.

Compared to a micro-entreprise, your accounting obligations will be more demanding, although still manageable. This status also makes you eligible for personal income tax.

Under this freelance status, you are personally the business, meaning you are legally responsible. However, since 2022, that responsibility is limited to your professional assets, meaning your personal property cannot be seized in the event of debt.

This freelance status is well suited if you're generating regular income and want to build a sustainable business, or if your expenses are quite high.

Advantages of this freelance status:

• Simple registration procedures
• Ability to deduct actual expenses
• Personal liability limited to professional assets since 2022

Disadvantages of this freelance status: 

• Heavier accounting obligations
• Income tax by default, or option to switch to corporation tax

EURL

If you're looking for a more solid structure while retaining full control, you can opt for an EURL (single-member limited liability company). This is a more advanced setup, but it comes with greater accounting and administrative responsibilities.

With Vivid, you’ll have access to all the accounting tools to make life easier. Open a free account

Under this freelance status, you’ll be classed as a non-salaried worker, meaning you’re affiliated with the self-employed social security scheme — which offers more limited protection than an employee status.

The EURL is especially useful if you have regular business expenses, as you can deduct your actual costs. You can also choose to pay corporation tax (IS).

This status is therefore a relevant option if you're thinking long term and want to optimise your income and protection.

Advantages of this freelance status:

• Liability limited to your capital contributions
• Deduction of actual expenses allowed
• More professional image
• Choice between income tax and corporation tax

Disadvantages of this freelance status: 

• More complex and costly setup
• Full bookkeeping required
• Affiliated with the non-salaried workers’ scheme, with weaker social protection than assimilated employees

SASU

The SASU (société par actions simplifiée unipersonnelle) is a freelance status similar to the EURL but with a more flexible legal structure and lighter governance.

Compared to the EURL, the SASU offers better social protection — though it comes with higher contributions. You’re considered an "assimilated employee", meaning you're covered by the general social security scheme, like any employee. This gives you strong health and pension coverage.

If your goal is to earn significant income, pay yourself a proper salary, and eventually expand by taking on associates or staff, the SASU could be a good fit. 

Advantages of this freelance status:

• Full social protection (pension, health, etc.)
• Liability limited to company capital
• Flexible structure for bringing in associates or employees

Disadvantages of this freelance status: 

• High social contributions, even without salary
• Complex and heavy administrative burden
• Taxation can be tricky to anticipate

The “portage salarial”

With this freelance status, you’ll technically be an employee — you sign an employment contract with the umbrella company of your choice. This company invoices your clients, pays you a salary, and handles all the admin.

You’ll also benefit from all the perks of employee status, especially regarding social protection, unemployment rights, and pensions. However, you still get to choose your clients and projects. It’s a good option if you want to start freelancing without dealing with the admin side

Advantages of this freelance status:

• Employee status + full social protection
• No need to manage accounts or legal admin
• Ideal during a transition or for occasional work

Disadvantages of this freelance status: 

• High management fees (5–10% of turnover)
• Less autonomy in commercial decisions
• Not ideal for long-term business development

Financial support according to your freelance status 

In 2025, several forms of support are still available and could help you. Eligibility often depends on the legal status you’ve chosen.

The micro-entreprise

• ACRE: this freelance status entitles you to partial exemption from social charges for 12 months. In 2025, this aid remains available if you meet certain criteria (job seeker, under 26, etc.).
• ARCE: if you’re registered with Pôle Emploi, you can request to receive part of your unemployment rights as capital. This is useful if your business requires initial investment.
• VAT exemption: if your turnover is below €36,800 (services) or €91,900 (sales) in 2025, you qualify for VAT exemption with this freelance status.

Sole entrepreneurship (entreprise individuelle - EI)

• ACRE: also available for sole traders under certain conditions.
• Deducting business expenses: unlike with the micro-entreprise, this freelance status lets you deduct actual expenses — a form of indirect aid that can significantly lower your taxable income if you have major costs.
• Tax credits or specific exemptions: depending on your sector (crafts, urban enterprise zones, etc.), you may qualify for tax breaks or credits.

EURL

• Indirect aid via expense deductions: as with sole trader status, you can deduct actual costs and reduce your taxable income.
• Option for income or corporation tax: choosing IS (corporation tax) can be a tax optimisation strategy. For example, you can pay yourself a low salary at first and benefit from a reduced IS rate of 15% on the first €42,500 of profit.
• Targeted exemptions: settling in a ZFU (urban free zone) or QPV (priority neighbourhood) can give access to certain exemptions.

SASU

• Aid via assimilated employee status: with this freelance status, you contribute to the general regime. You gain access to health insurance, pensions, and (under conditions) unemployment benefits.
• IS and dividend optimisation: you can manage your income mix between salary and dividends — a useful strategy depending on your turnover.
• Sector-specific tax benefits: certain industries (e.g. tech, innovative start-ups) are eligible for additional tax credits and exemptions.

The “portage salarial”

• Unemployment rights maintained: one of the biggest benefits of this status — you contribute to unemployment insurance while staying independent in your work.
• Full social protection: health, pension, and insurance — you enjoy employee-level coverage without managing admin.
• No access to entrepreneur grants (ACRE/ARCE): umbrella work isn’t classed as a legal business entity, so it doesn’t qualify for common schemes like ACRE or ARCE.

Managing your freelance finances effectively is a key driver of long-term success. Learn strategic cash management tips in Business cash placement: a strategic lever too often overlooked.

Choosing your freelance status

Now that you know all the details about each option, how do you decide which freelance status is right for you? Here are the steps to follow.

Define your professional activity

First, you need to clarify the nature of your work: is it a liberal profession (consultant, coach, graphic design, etc.), a commercial activity (selling goods, etc.), or an artisan trade (repairs, crafts, etc.)?

This distinction matters when choosing your freelance status. For example, if you're engaged in commercial activity, you'll generally have to follow more rigorous accounting rules — whereas a liberal professional can often choose a simpler scheme. Likewise, some artisan trades require registration with the chamber of trades (chambre des métiers), which isn't necessary for liberal professions.

Estimate your income and expenses 

Before selecting your freelance status, you need a realistic financial forecast of your income and costs. To do this:

• List potential sources of income: review your quotes, contracts, or if you haven’t signed any yet, research market rates in your sector and make an estimate.
• Calculate your business expenses: identify all essential costs (laptop, software, subscriptions, etc.). Don’t forget office rental, travel, or any other professional expense.
• Add a safety margin: unexpected expenses always come up — so factor in a buffer to help manage any surprises.

With all this in mind:

If your projected income is modest and your expenses are limited, the micro-entreprise status is a great starting point thanks to its simplicity and charges that scale with your turnover. If you're expecting significant costs, an EI or EURL may be more appropriate, allowing you to deduct those expenses and optimise your taxes. For a higher turnover, the SASU may be the best option, despite more complex accounting.

Align with your long-term goals 

Make sure the freelance status you choose also fits your personal and professional goals.

If you want strong social protection similar to an employee (better pension, robust healthcare), the SASU or umbrella company structure will suit you better. Want to focus purely on your work and avoid admin headaches? The micro-entreprise is the most accessible option. Want to build a scalable business and potentially bring in shareholders? Then the SASU offers a solid foundation.

Take time to align your choice with:

• Your short- and medium-term goals
• Your need for flexibility or security
• Your income projections

This isn't a permanent decision — you can always change your status later if your business evolves. But getting the foundations right from the start will save you a lot of hassle.

FAQ

Can I combine multiple freelance statuses?

No — you can’t hold two legal statuses for the same activity. However, you can carry out several activities under one status (e.g. graphic design + training) if they’re compatible, or use a second status for a completely different line of work. For instance, it’s perfectly legal to be an employee and a micro-entrepreneur on the side.

Can I change my freelance status later?

Yes — and it’s quite common. Many freelancers start out with micro-entrepreneur status and then move to EI, EURL, or SASU as their business grows. You’ll need to go through deregistration and re-registration, but it’s entirely possible to adapt your structure as you evolve.

Do I have to register my activity if I only work occasionally?

Yes. Even if it’s just a side gig or a top-up income, you need to formally declare your business activity, choose a freelance status, and comply with the related tax and social regulations. Micro-entrepreneur status is the easiest way to get started in these cases.

Do I need to open a business bank account as a freelancer?

Yes, it’s highly recommended to open a separate bank account for your freelance activity. In fact, if you earn more than €10,000 in turnover for two consecutive years, the law requires it. It doesn’t have to be a paid professional account — a regular current account will do, as long as it’s dedicated to your freelance finances.