A property dealer is a person who acquires real estate and rehabilitates it to realize a capital gain on resale.
For people who wish to carry out this activity professionally, the question of legal status remains at the heart of concerns according to Sylvain Giudicelli of the company LAVENTURE. To make an informed choice, you will first need to study the options available to you in this regard. This way, you will be able to determine the legal status that best suits your activity.
Commercial company status (SAS or SASU)
To freely exercise the profession of goods dealer, the status of commercial company is the most appropriate. Indeed, the profession of goods dealer involves a commercial activity since it consists of the purchase and resale of goods. By opting for this type of status, you create a separate entity. So, you protect your personal assets in the event of financial difficulties. Concretely, the liability of the creator or shareholders of the company is limited to the amount of their contribution.
If you join forces with other people to form your commercial company, they are considered shareholders. “Two options are available to you in these cases: the SAS or the SARL” explains Sylvain Giudicelli. The status of SAS (Simplified joint stock company) is strongly recommended, because it offers a more flexible legal framework. However, if you plan to launch your business alone, you will have to choose between SASU and EURL. Also in this context, the status of the SASU (simplified single-member joint stock company) is more appropriate. Property merchants who are sole owners and managers of their activity generally opt for this status. It is in fact an equivalent of the SAS.
The status of sole proprietorship or EIRL
It is also possible to practice the profession of goods dealer by opting for the legal status of a sole proprietorship (EI). Also called exercise in own name, this legal form offers several advantages for property dealers who wish to create their structure. Above all, the method of creating a company under EI status is very simple and inexpensive. In fact, to set up your structure, you will not have to carry out the mandatory administrative formalities provided for companies.
Also, with an IE, it is not necessary to comply with a legal formalism binding during the life of the company.
The microenterprise regime
Finally, thanks to this status, you have the possibility of benefiting from the microenterprise regime. This includes, among other things, the VAT-based exemption and the withholding tax on income. The particularity of this status lies in the fact that no separate legal entity is created. Thus, the company and its creator form a single person from a legal point of view. To benefit from relatively flexible conditions, you can opt for the EIRL (Individual Company with Limited Liability). “Thanks to this status, you will have the possibility of splitting your professional assets and your personal assets into two” says Sylvain Giudicelli.
Apart from the options presented above, there are other legal statuses such as the SCI or that of the microenterprise. These statuses are by nature either unsuitable for commercial activity or involve the merchant in personal liability. To ensure that you exercise freely and have control over your activity, opt for SAS or SASU status.