Between SAS and SARL, the difference in social security contributions reaches 35 points: around 80% of net remuneration for an SAS chairman (assimilated employee) versus 45% for a SARL majority manager (self-employed). This difference represents several tens of thousands of euros a year, and is a decisive factor in your choice of legal structure.

What are social charges in SAS and SARL?

Social security charges for SAS and SARL differ considerably: around 82% of net salary for SAS versus 45% for SARL. This difference is explained by the distinct social status of the executive, depending on the legal form chosen. In concrete terms, to pay 3,000 euros net to an SAS chairman, the company incurs a total cost of 5,460 euros, whereas a majority shareholder in a SARL will cost 4,350 euros for the same net remuneration.

In SAS, the Chairman is considered as an employee and is covered by the general social security system, with employer and employee contributions totalling around 82%. In SARLs, the majority shareholder is a “travailleur non salarié” (TNS) and is covered by the Sécurité Sociale des Indépendants, with an overall rate of 45% calculated on a different basis. This fundamental distinction between these two special statuses explains why the choice of structure can generate an annual difference of up to 15,000 euros on a 50,000 euro salary.

Social security system for SAS chairmen

The Chairman of a simplified joint stock company (SAS) enjoys the status of an “assimilé salarié” (assimilated employee) when he receives remuneration in respect of his corporate mandate. This regime involves two levels of contributions: employer’s contributions (around 42% to 45% of gross salary) and employee contributions (around 22% of gross salary).

In concrete terms, to receive a net salary of 3,000 euros, the calculation is as follows: a gross salary of around 3,900 euros (including 22% payroll tax), plus around 1,700 euros in employer’s contributions. The total cost to the company is therefore 5,600 euros. This high overall rate (around 87% of charges in relation to net income) is explained by a comprehensive social protection system, including unemployment insurance. Note that a gross income of around 1,585 euros per quarter will enable you to validate one retirement quarter in 2024, an important tax threshold to consider in your remuneration strategy.

Advantages of the assimilated employee plan

The main advantage lies in the quality of your social security cover. You benefit from a pension calculated on the same basis as private-sector employees. Membership of the general scheme also guarantees better reimbursement of healthcare costs.

Access to unemployment insurance is a major advantage in the event of dismissal. Under certain conditions, you can receive ARE benefits once you have left the company. This financial security represents a significant safety net.

Disadvantages and high costs

Social security charges of 80% of net salary weigh heavily on the company’s cash flow. For a net remuneration of 50,000 euros a year, you will incur around 41,000 euros in social security charges under an SAS, compared with just 22,500 euros under a SARL TNS. The difference is therefore 18,500 euros per year, a substantial difference for young, low-profitability structures.

This difference in cost increases with the level of remuneration. For a net salary of 30,000 euros, you will pay 24,600 euros in charges under a SAS, versus 13,500 euros under a SARL (a difference of 11,100 euros). At a net salary of 70,000 euros, you would pay 57,400 euros in charges under a SAS, compared with 31,500 euros under a SARL, a difference of 25,900 euros. These amounts have a direct impact on your ability to invest and the profitability of your business.

Administrative formalities are also more complex, and generate additional costs. You have to draw up monthly pay slips that comply with social regulations. The déclaration sociale nominative (DSN) must be sent to URSSAF on a monthly or quarterly basis. These obligations often require the use of a chartered accountant or specialized payroll software, increasing your management costs by 100 to 200 euros a month.

Social security system for the majority manager of a SARL

The majority shareholder of a limited liability company (SARL) is covered by the French self-employed workers’ scheme (TNS). Social security contributions vary according to income level, and represent around 45% of net remuneration, all contributions included. This overall rate includes sickness and maternity contributions, basic and supplementary pensions, family allowances, CSG-CRDS and contributions to professional training.

On a net income of 3,000 euros, you will pay approximately 1,350 euros in social security contributions. The effective rate varies slightly according to income bracket: family allowance contributions are progressive, and some contributions apply degressive rates on higher incomes.

This scheme applies when you own, alone or with your spouse and minor children, more than 50% of the shares. Contributions are calculated on the basis of declared professional income. TheEURL social security system works on the same principles for the sole managing partner.

Important point: minimum annual contributions of around 1,145 euros apply even in the absence of remuneration. These minimum contributions guarantee basic social security coverage and pension rights, regardless of your company’s level of activity. You need to take this into account in your cash flow, particularly in the first few years of business.

Substantial savings on contributions

This represents a saving of up to 35 contribution points compared with the assimilated employee scheme. For a net remuneration of 60,000 euros, the majority manager of a SARL incurs around 27,000 euros in social security contributions, compared with 49,200 euros for the chairman of an SAS. This represents a saving of 22,200 euros per year, or 37% less.

This difference varies according to salary level. At a net salary of 30,000 euros, the annual saving is 11,100 euros. At a net salary of 90,000 euros, the saving rises to 33,300 euros. These substantial differences have a direct impact on the profitability of your business, and allow you to optimize your taxation.

The impact on the company’s cash flow is considerable. These savings make it possible to reinvest in development, build up a security reserve or improve your overall remuneration. For a young company, this difference can represent several months’ fixed costs.

Declaratory formalities are also simplified. You don’t have to issue monthly pay slips. Social security declarations are made directly to URSSAF via the DSI (déclaration sociale des indépendants), once a year. Contributions are paid either monthly or quarterly, depending on your choice, with an annual adjustment based on your actual income.

Reduced social protection

The downside of these savings is less favorable social security coverage. For the same level of income, the pension rights of a TNS majority shareholder are around 30% lower than those of an SAS chairman. In concrete terms, for 40,000 euros in annual remuneration, you will accumulate around 70 supplementary pension points as a TNS, compared with 100 points as an assimilated employee. The absence of unemployment insurance also deprives you of a safety net in the event of dismissal or economic difficulties.

Daily sickness benefits are also less generous. As a self-employed worker, you receive daily benefits after a 3-day waiting period, calculated at 1/730th of your capped annual income. For an income of 45,000 euros, the daily allowance is around 62 euros, compared with 90 euros for a salaried employee. You will often need to take out additional insurance to make up for these shortfalls, at an annual cost of between 500 and 1,500 euros, depending on the coverage chosen. The cost of these additional coverages partially reduces the initial financial advantage of the TNS plan.

Tax and social security treatment of dividends

Dividends are an alternative to traditional remuneration. Their social treatment differs radically depending on the structure chosen. This distinction has a major influence on the optimization of your overall remuneration.

In SAS, dividends paid to the Chairman are not subject to any social security charges. They are subject to a flat tax of 30% (17.2% social security contributions and 12.8% income tax). You can opt for the progressive income tax scale, with a 40% allowance – an attractive option if your marginal tax bracket is less than 30%. In SARLs (limited liability companies), dividends paid to the majority shareholder in excess of 10% of the share capital, share premiums and sums in the shareholder’s current account are subject to TNS social security contributions at a rate of 45%.

In concrete terms, for a capital of 100,000 euros, the first 10,000 euros of dividends are exempt from social security contributions, and are subject only to the mandatory deduction of 30%. Beyond this threshold, each additional euro of dividend is subject to 45% social security contributions in addition to tax. This rule considerably limits the interest of the SARL dividend strategy, unless the share capital is significantly increased to raise the exemption threshold.

SAS optimization strategy

You can optimize your SAS remuneration by combining salary and dividends. You can limit your salary to the minimum required to validate your pension quarters, i.e. around 6,340 euros gross annual income in 2024 to obtain 4 quarters. Additional remuneration takes the form of dividends, which are not subject to social security charges, thus maximizing your net disposable income.

This strategy generates substantial savings while preserving your essential social rights. For a total remuneration of 80,000 euros, an optimal mix would be to receive 20,000 euros in gross salary and 60,000 euros in dividends. This would save around 25,000 euros a year compared with a remuneration package paid entirely in salary. However, care must be taken to maintain a reasonable balance: administrative doctrine considers that compensation that is manifestly inadequate in relation to the duties performed runs the risk of being requalified for tax purposes. Optimization must therefore remain consistent with your level of responsibility and the company’s actual activity.

Limits of the SARL system

The SARL de famille social security contribution applies the same rules as the SARL classique. The fact that dividends in excess of 10% of share capital and shareholder current accounts are subject to social security contributions severely limits the appeal of this strategy. You need to calculate your exemption threshold precisely to optimize your situation.

For a capital of 50,000 euros, only 5,000 euros of dividends are exempt from social security contributions. If you distribute 30,000 euros in dividends, 25,000 euros will be subject to social security contributions at 45%, i.e. 11,250 euros. Then there are social security contributions and income tax via the flat tax of 30% on the whole, bringing the total fiscal and social cost to a high level. This rule makes the SARL much less attractive than the SAS for entrepreneurs wishing to focus on dividends.

One optimization strategy is to increase share capital, or to include contributions to partners’ current accounts in the calculation of the threshold. With capital raised to 100,000 euros, the exemption threshold falls to 10,000 euros, reducing the base subject to contributions. However, even with this optimization, the SAS retains a decisive advantage: all dividends paid to the Chairman are exempt from social security charges, with only the 17.2% social security contribution applying.

Criteria for choosing between SAS and SARL

Your decision needs to take into account several parameters in addition to the amount of social security contributions. The level of remuneration envisaged, your needs in terms of social protection and your asset strategy all influence the optimal choice. The management of professional expenses and the overall optimization of your remuneration are also decisive factors in this decision.

Analysis by compensation level

The choice between SAS and SARL varies considerably depending on your level of remuneration. Detailed calculations reveal substantial differences, which justify a precise analysis of your situation. The break-even point is generally between €70,000 and €80,000, depending on your ability to optimize via dividends.

Detailed comparison of payroll taxes by salary level :

For salaries of less than 30,000 euros a year, the SARL offers a clear advantage. With 13,500 euros in charges, compared with 24,600 euros for an SAS, you save 11,100 euros a year. This represents 37% of your net remuneration, and more than compensates for the reduced social security coverage. You retain sufficient cash flow to develop your business without compromising your essential social rights.

Between 50,000 and 70,000 euros, the SARL remains advantageous, with a saving of 18,500 euros on a 50,000 euro remuneration. However, the gap begins to narrow if you incorporate a dividend strategy. A specialized accounting firm can help you calculate the exact tipping point for your situation.

Above €80,000, SAS becomes more attractive thanks to dividend optimization. For an overall remuneration of €80,000, structured as €30,000 salary and €50,000 dividends, total expenses in SAS amount to around €30,000 (€24,000 salary + €8,600 social security contributions on dividends at 17.2%). For a SARL, the cost is €36,000, making the SAS €6,000 more advantageous. The superior social security protection and access to unemployment insurance also justify this choice at this level of remuneration.

The break-even point lies between €70,000 and €80,000, depending on your ability to distribute dividends and your marginal tax bracket. This pivotal zone requires a personalized simulation that takes into account income tax, social security contributions and your social protection objectives. Above 100,000 euros, the SAS is the optimal choice, with potential savings of several thousand euros thanks to the combination of salary and dividends.

Estate and inheritance considerations

In addition to the usual social security charges, the transfer of your company generates different tax costs depending on the structure. In SARLs, share transfers are subject to registration duties of 3% after allowance, compared with just 0.1% for SAS shares. This difference has a direct impact on the value of your company. Social security charges accumulated during operation also influence the sale price: a structure that has optimized its contributions will have more cash at its disposal, making it more attractive to potential buyers.

Global tax and social security optimization

Optimizing your remuneration requires constant vigilance on several key points. Calculation of the 10% threshold of the SARL’s share capital determines the portion of dividends exempt from social security contributions. An error in this calculation can result in an URSSAF reassessment of several thousand euros.

To validate your pension quarters, you must earn a minimum annual salary. In 2024, you must earn at least €6,762 to validate four quarters. If your salary is too low, your future pension rights will be compromised.

Essential points of vigilance

The balance between salary and dividends must remain consistent with your actual position in the company. Excessive disproportion exposes you to tax requalification. The tax authorities take a close look at clearly undervalued remuneration.

Tax and social security declarations must be perfectly synchronized. Inconsistencies between your annual accounts and your DSI or URSSAF declarations trigger controls. Systematically check that your declared amounts match.

Common mistakes to avoid

Don’t overlook the impact of the 17.2% social security contribution on dividends. This charge is added to income tax and significantly reduces your net gain. Include it in your remuneration simulations.

If you don’t earn a salary at the start of your career, your social security rights will be jeopardized. A regular salary, however modest, preserves your health cover and pension rights. This frequent error can have a lasting effect on your social security protection.

Trade-off between remuneration and dividends

To optimize your SAS remuneration, compare the net cost: a salary of 10,000 euros costs you around 18,000 euros (80% social security contributions), i.e. a cost of 8,000 euros for 10,000 net. Dividends of 10,000 euros net cost around 13,000 euros gross (social security contributions at 17.2% + flat tax at 12.8%), i.e. a cost of 3,000 euros. The saving is 5,000 euros for every 10,000 euros paid out in dividends rather than salary.

For SARLs, the calculation is radically different. A salary of 10,000 euros net costs around 14,500 euros (45% social charges). Dividends in excess of 10% of the share capital are subject to the same social security charges as wages, cancelling out any advantage. Only the fraction below this threshold is exempt from social security contributions. For a capital of 50,000 euros, only 5,000 euros of dividends benefit from favorable treatment, severely limiting this optimization strategy.

Secure your choice of legal structure

The difference in social security contributions between SAS and SARL is 35 points, i.e. a difference of 15,000 to 25,000 euros per year, depending on your salary. The SARL is generally more advantageous for salaries of up to 60-70,000 euros a year, while the SAS becomes competitive above this figure, thanks to the possibility of distributing dividends that are not subject to social security charges. A personalized simulation, taking into account your level of remuneration, your social protection needs and your asset strategy, will help you identify the optimal structure for your situation.