Critical: Owning a French Company = US Reporting Obligations
Any American who owns 10% or more of a French company (SARL, SAS, SASU, etc.) must file Form 5471 with their US tax return every year. This is a complex, multi-page form with significant penalties for non-filing ($10,000+). Consult a US expat tax specialist before forming any French company.
Quick Comparison: Which Structure is Right for You?
| Structure | Founders | Min Capital | Tax Regime | Best For |
|---|---|---|---|---|
| Micro-Entreprise | 1 | €0 | IR (personal) | Starting out, under €77K/yr |
| SASU | 1 | €1 | IS (corporate) | Solo founder, high revenue |
| SAS | 2+ | €1 | IS (corporate) | Startups, fundraising |
| SARL | 1–100 | €1 | IS or IR | Traditional small business |
| EURL | 1 | €1 | IR (default) | Solo, traditional sector |
SASU — The Consultant's Favorite Structure
The SASU (Société par Actions Simplifiée Unipersonnelle) is overwhelmingly the structure of choice for American consultants in France earning above €77,700/year:
- Only one shareholder required — you can own 100%
- Social charges on salary only — if you pay yourself a salary, pay charges on that; dividends have lower charges
- Subject to Impôt sur les Sociétés (IS): 15% on first €42,500 of profit, 25% above
- Salary to yourself: subject to full social charges (salarié assimilé president regime)
- Dividends: 30% flat tax (PFU) — more efficient at high income levels
- Can issue stock options and BSPCE for fundraising
- Accountant is required for annual accounts. Budget €1,500–€4,000/year for a comptable
- Requires annual filing of company accounts with INPI/Greffe
- US reporting: Form 5471 required — consult a dual-tax specialist
How to Register a SASU in France
- Draft statuts (bylaws) — templates available online; a lawyer can customize for €500–€2,000
- Deposit share capital at a French bank (even €1 is sufficient legally)
- Register at INPI.fr (Guichet Unique) — online one-stop shop for company registration (since 2023)
- Cost: ~€37 registration fee + publication of legal notice (~€150–€250)
- Timeline: 3–10 business days for SIRET number
- Hire an accountant (comptable) — essential for compliance and to maximize SASU tax advantages
- Open a business bank account: Qonto, Shine, Blank, or traditional banks
Company Registration Resources
INPI — Guichet Unique (Company Registration)
France's one-stop shop for business registration — SASU, SAS, SARL
Ibanista — Starting a Business in France as an American
Specialist guide covering the process for Americans specifically
Lexidy — Setting Up a Business in France (2025)
Legal firm guide to French company formation
Euro Start Entreprises — 8 Steps to Start a Business
Practical step-by-step guide for foreign entrepreneurs in France
French Labour Law
Hiring employees in France