When deciding to become a self-employed nurse, one question often arises: should you practise as a sole trader or set up a company? The answer depends on your situation, your goals and the working environment you want.
Here is a clear guide to help you better understand the advantages and limitations of each option and choose the status that best suits your professional situation.
Understanding the two statuses: self-employed or company
Being self-employed as a natural person means that you operate under your own name. You are responsible for your income, but also for your debts. The procedures are simple and the accounting requirements are minimal.
Setting up a company (such as an SRL), on the other hand, gives your business its own legal existence. Your liability is limited to your contributions. This framework offers better protection, but involves more rules: double-entry accounting, legal obligations, additional declarations.
Criteria for making the right choice
To help you decide, ask yourself the following questions:
1) What is my projected income?
If your income is modest, self-employed status is sufficient. Above a certain threshold (often around €50,000 in net profit per year), a company becomes more attractive from a tax perspective.
2) Do I need to protect my personal assets?
A company allows you to separate your private assets from your professional risks.
3) Am I comfortable with administrative tasks?
Company status requires greater rigour. You will need support, particularly for accounting.
4) What are my ambitions?
If you want to collaborate, employ, invest or expand your projects, a company offers you greater flexibility.
The impact of taxation on your decision
As a self-employed individual, your income is taxed on a progressive scale. The more you earn, the more you pay in tax. As a company, profits are subject to corporation tax, which often has a more favourable fixed rate. This also allows you to smooth out your income through remuneration or dividends.
But be careful: you need to take into account the additional costs associated with running a company to assess whether the change is really profitable.
Status and social protection: little difference
In both cases, you contribute as a self-employed person. Whether you are a company or not, your social rights (pension, healthcare, benefits) remain similar. The advantage of a company lies more in the flexibility of managing your personal income.
When should you consider setting up a company ?
Many nurses start out as freelancers. It’s simple, quick and efficient. But when your business grows, your income increases or you have new projects, setting up a company can be a logical step.
Changing your status is an important decision that deserves personalised support. At My Nurse Expert, we support freelance nurses at every stage of their career, including this type of transition.
Are you unsure whether to remain freelance or set up your own company? Contact us. We will analyse your situation together to help you make a choice that is in line with your goals and your reality in the field.