How much should you set aside as a French micro-entrepreneur?
As a French micro-entrepreneur, it is wise to set aside social contributions, possible tax, business expenses and a safety margin for slower months.
Explanation
A micro-enterprise can have irregular income. Some months may bring strong revenue, while others bring very little. That is why you should not treat all money received as immediately available.
The minimum amount to set aside is the social contributions you will owe. If you chose the lump-sum tax payment, add that tax too. Then reserve money for business expenses such as tools, equipment, software, travel, marketing, insurance or subcontracting.
A simple method is to split revenue into three pockets: charges, business expenses and available income. For more stability, add a fourth safety pocket to absorb late payments, quiet months or unexpected costs.
Formula / method
Amount to set aside = social contributions + possible tax + planned business expenses + safety margin
Concrete example
If you collect €1,500, with estimated contributions of €318, €150 in expenses and a 10% safety margin, you should reserve about €618 before treating the remainder as available.
Common mistake
Do not keep everything in one account without tracking. When charges arrive, the feeling of having earned more disappears very quickly.
This content follows Outilo's editorial guidelines.