Hello,
I thank you very much for all the advice I received so far. It's really helping me finding ways to grow my activity and find ways to break my current plateau.
I am a Freelance online teacher in France.
This year my hourly rate is doubling and I start to have 200E/h customers. It will be my normal hourly rate compared to 100/120 last year.
The problem is that I'm still a solopreneur and in France, this status is nice for starting. I have to pay 25% taxes in total but have an earning threshold of 80K E/year maximum. I can exceed this threshold during one year with no limits.
If I exceed it for two consecutive years, I need to change my company status.
Also if I exceed the threshold, the taxes rate will increase permanently to approximately 40%.
I have the plan to move and relocate my company in Czech Republic in two years.
Before that, my goal for the next two years, is to give group lessons next autumn to reach 400 E/h or more.
So my question is:
-Should I keep my current company form. I have very little costs, simplified accounting and don't need an accountant, and it's very easy in terms of administrative tasks. But it will be hard to earn more than 100K/year, which is too little for my taste given that I want to save at a faster rate.
I will use these more quiet next two years to focus solely on creating videos and content, and start the group lessons. I will grow my company in Czech Republic, where there will be no income threshold.
-The other option is to change my company structure. It's possible to create a SASU (a simplified joint stock company (SAS) with a single shareholder). I can keep my current company and have the SAS company at the same time. It will require some administrative work and an accountant. The tax rate will be 40% with no income limit and I can deduct business expenses (I can't do it with my current company). I don't know if it will be worth it to start this company, given that I plan to move in two years and will need to close it (it will be further administrative headaches).
Also, in France, the State doubles the price of my lessons since it's considered as a "house/people service" like house cleaning or gardening. My customers get a 50% tax return on the lessons I give. It will take 6 months to have my SAS approved to this program. So I would use my current company before this SAS company gets approved to this program.
I hope it's not too complicated.
I teach 25 hours/hour. The rest is for improving my maths level, creating content and resources, business and administrative tasks and finding ways to grow and scale my activity.
I could make 25x200E x4 weeks x 11 months = 220K next year.
So what option would you chose ?
I'm inclined to the first one, because it's my comfort zone.
But in Czech republic, I will need to have a real company with an accountant. So maybe I should get bigger before moving, even just for the learning curve.
Is the option number 2 worth it ?
And if you have any other suggestions, you're welcome.
Thank you very much
I really appreciate your advice. It's really helping me getting vision in this phase where I have "knots" in my brain.
I thank you very much for all the advice I received so far. It's really helping me finding ways to grow my activity and find ways to break my current plateau.
I am a Freelance online teacher in France.
This year my hourly rate is doubling and I start to have 200E/h customers. It will be my normal hourly rate compared to 100/120 last year.
The problem is that I'm still a solopreneur and in France, this status is nice for starting. I have to pay 25% taxes in total but have an earning threshold of 80K E/year maximum. I can exceed this threshold during one year with no limits.
If I exceed it for two consecutive years, I need to change my company status.
Also if I exceed the threshold, the taxes rate will increase permanently to approximately 40%.
I have the plan to move and relocate my company in Czech Republic in two years.
Before that, my goal for the next two years, is to give group lessons next autumn to reach 400 E/h or more.
So my question is:
-Should I keep my current company form. I have very little costs, simplified accounting and don't need an accountant, and it's very easy in terms of administrative tasks. But it will be hard to earn more than 100K/year, which is too little for my taste given that I want to save at a faster rate.
I will use these more quiet next two years to focus solely on creating videos and content, and start the group lessons. I will grow my company in Czech Republic, where there will be no income threshold.
-The other option is to change my company structure. It's possible to create a SASU (a simplified joint stock company (SAS) with a single shareholder). I can keep my current company and have the SAS company at the same time. It will require some administrative work and an accountant. The tax rate will be 40% with no income limit and I can deduct business expenses (I can't do it with my current company). I don't know if it will be worth it to start this company, given that I plan to move in two years and will need to close it (it will be further administrative headaches).
Also, in France, the State doubles the price of my lessons since it's considered as a "house/people service" like house cleaning or gardening. My customers get a 50% tax return on the lessons I give. It will take 6 months to have my SAS approved to this program. So I would use my current company before this SAS company gets approved to this program.
I hope it's not too complicated.
I teach 25 hours/hour. The rest is for improving my maths level, creating content and resources, business and administrative tasks and finding ways to grow and scale my activity.
I could make 25x200E x4 weeks x 11 months = 220K next year.
So what option would you chose ?
I'm inclined to the first one, because it's my comfort zone.
But in Czech republic, I will need to have a real company with an accountant. So maybe I should get bigger before moving, even just for the learning curve.
Is the option number 2 worth it ?
And if you have any other suggestions, you're welcome.
Thank you very much
I really appreciate your advice. It's really helping me getting vision in this phase where I have "knots" in my brain.
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