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View the trainingAirbnb Rental Management: Sole Trader or Company (SARL/SAS)?
A complete comparison of legal structures for starting your short-term rental management company: thresholds, contributions, liability, Carte G and expert advice to make the right choice.
Sole trader (auto-entrepreneur / micro-entreprise): the ideal choice to get started
The micro-entrepreneur status is the one most commonly used by people launching a rental management business. It lets you get started in a matter of hours, with no setup costs and ultra-simplified bookkeeping. It is the recommended choice if you are going solo and your projected revenue stays below the legal thresholds.
Advantages
- Set up in 24h via the INPI single-window portal, €0 in fees
- Simplified bookkeeping: a single income ledger is enough
- Proportional social security contributions: 21.1% of revenue (BNC)
- VAT exemption below €36,800 in revenue
- Optional flat-rate income tax settlement available (2.2%)
- No charges when there is no revenue
Limits
- Revenue cap: €77,700/year (BNC services)
- Unlimited liability on your personal assets
- Cannot deduct actual expenses (fuel, software, etc.)
- No possibility of taking on partners
- Less credible image for some owners of premium properties
- Limited social protection (reduced daily sickness benefits)
Key point: The €77,700 cap applies to revenue collected, not to profit. If you charge a 20% commission on €400,000 of rental revenue, your management revenue is €80,000, so you already exceed the threshold. Watch out too for cleaning income, which adds on top.
SARL vs SAS: the detailed comparison
When the sole trader (auto-entrepreneur) status no longer cuts it, two forms of company are available to you: the SARL (Société à Responsabilité Limitée, a private limited company) and the SAS (Société par Actions Simplifiée, a simplified joint-stock company). Each has its own specificities.
| Criterion | SARL | SAS |
|---|---|---|
| Minimum capital | €1 | €1 |
| Number of partners | 2 to 100 | 1 to unlimited |
| Director | Manager (gérant) | President (président) |
| Director's social regime | TNS (around 45%) | Employee-equivalent (around 65-80%) |
| Social protection | Decent (pension, health) | Superior (general social security regime) |
| Contributions on dividends | Yes (above 10% of capital) | No (30% flat tax) |
| Flexibility of the bylaws | Framed by law | Very flexible |
| Transfer of shares | Approval required | Free (unless a clause applies) |
| Taxation | Corporate tax (15/25%) or income tax | Corporate tax (15/25%) or income tax |
| Setup cost | €200-800 | €200-800 |
| Ideal for | Family-run management business, lower social costs | Growth, investors, flexibility |
EURL and SASU: the solo versions
If you are setting up your rental management business on your own, you can opt for an EURL (a single-member SARL) or a SASU (a single-member SAS). These forms offer the protection of limited liability without needing a partner.
The EURL is particularly attractive for rental management businesses: the manager falls under the TNS regime with lower contributions (~45% vs ~65-80% in a SASU). For the same pay, you carry a lighter charge burden. In return, social protection is slightly lower (lower daily benefits, smaller supplementary pension).
The SASU appeals to founders who want to benefit from the general social security regime (better health and pension cover) and to optimise through dividends (30% flat tax, with no additional social security contributions). Be careful though: no pay means no social protection.
When should you move from sole trader (auto-entrepreneur) to a company?
Moving to a company is not only a question of hitting a revenue threshold. Here are the signals that should put you on alert:
You are approaching the €77,700 cap
If you exceed the threshold two years in a row, you automatically lose the status. Anticipate the change to avoid a forced and poorly prepared transition. Ideally, start the process as soon as you reach €50,000-60,000 of annual revenue.
Your actual expenses exceed 34% of revenue
Under the micro-entreprise, the tax allowance is a flat rate (34% for BNC). If your actual expenses (travel, software, outsourced cleaning, insurance) exceed that percentage, a company taxed under corporate tax will let you deduct all your expenses at their real amount and pay less tax.
You want to hire or take on partners
The micro-entrepreneur status does not make it easy to hire (social complexity) and does not allow for partnerships. If you are planning to recruit an employee or to set up the company with a partner, moving to a SARL or SAS is essential.
Liability is a concern for you
As a sole trader (auto-entrepreneur), you are liable on your personal assets. Damage caused in a managed property, a dispute with a guest, a costly loss of keys... With a company, your liability is limited to the capital you contribute (on top of your professional liability insurance).
Decision tree: which structure should you choose?
You are starting solo, projected revenue < €50,000
→ Sole trader (auto-entrepreneur). Zero fees, zero complexity. You test the market with no risk. If it works, you can migrate later.
You are starting solo, projected revenue €50,000 to €80,000
→ Sole trader (auto-entrepreneur) to get going, then EURL or SASU as soon as you approach €60,000. Plan the transition into your business plan.
You are starting solo, projected revenue > €80,000
→ EURL if you want to minimise social security contributions (TNS), SASU if you want the best social protection and to optimise through dividends.
You are setting up with two or more people
→ SAS for flexible bylaws and freedom of organisation, SARL for a more structured framework and lower social security contributions for the majority manager.
You want to raise funds or bring in investors
→ SAS without hesitation. The flexible bylaws let you create share classes, exit clauses and governance suited to investors.
Real cost by structure: how much you actually keep
Here is a comparison of net income (after social security contributions and taxes) for each structure, at different revenue levels. Assumptions: actual expenses at 30% of revenue, majority SARL manager, salaried SASU president.
| Annual revenue | Sole trader (net after contributions + income tax) | EURL / SARL (net after corporate tax + charges) | SASU / SAS (net after corporate tax + charges) |
|---|---|---|---|
| €30,000 | ~€19,800 | ~€15,500 | ~€13,200 |
| €50,000 | ~€31,500 | ~€27,000 | ~€23,500 |
| €80,000 | Cap exceeded | ~€44,000 | ~€38,500 |
| €120,000 | Cap exceeded | ~€64,000 | ~€56,000 |
* Simplified estimates. The exact amounts depend on your personal situation, the tax allowance chosen and the director's level of pay. Consult a chartered accountant for a precise figure.
Carte G: is it mandatory for your rental management business?
The Carte G (real-estate management licence) is issued by the CCI (chamber of commerce). It is mandatory if your management business collects rents on behalf of owners (a management mandate). If, however, you only invoice services (cleaning, guest welcome, listing management) without collecting the rents, the Carte G is not required.
The simple rule: if the booking money passes through your bank account before being paid back to the owner, you need the Carte G. If the platforms pay the owners directly and you invoice your commission separately, the Carte G is not necessary.
Requirements to obtain it
- Professional qualification: a diploma (BTS PI, real-estate degree) OR 3 years of experience with a Carte G professional
- Financial guarantee: minimum €30,000 (if handling funds)
- Professional liability insurance
- Clean criminal record (bulletin n°2)
Impact by structure
- Sole trader (auto-entrepreneur): Carte G possible but rare (the financial guarantee is costly for a micro-entrepreneur)
- SARL / SAS: The ideal form for holding a Carte G. The company takes out the financial guarantee and the insurance
- Tip: Start without a Carte G in pure service-provider mode, then obtain it as a company when you want to collect rents
Expert advice: the optimal strategy
The most common recommendation from chartered accountants specialised in short-term rentals:
Phase 1 (€0-50,000 in revenue): Start as a sole trader (auto-entrepreneur). Test the market, validate your business model and build up cash without worrying about bookkeeping. It is the optimal choice as long as your actual expenses stay below 34% of revenue.
Phase 2 (€50,000-80,000 in revenue): Prepare the transition. Consult a chartered accountant, compare EURL vs SASU simulations with your real numbers, and set up your company. Do not close your micro-entreprise until the company is operational.
Phase 3 (€80,000+ in revenue): You are now a company, you deduct all your expenses at their real amount, you can hire and obtain a Carte G if needed. Optimise your pay between salary and dividends with your accountant.
Go deeper into the topic
Chapter: Legal structure
The complete guide in our free training: setup steps, legal obligations, insurance and the Carte G explained in detail.
Read the chapter →Chapter: Optimise your income
Taxation, optimising your pay, dividend/salary strategy and a comparison of tax regimes.
Read the chapter →Frequently asked questions
Yes, it is in fact the most widely used status to launch a rental management business. You can operate under the APE code 6831Z (real-estate agencies) or 8110Z (combined building support activities). The only limit is the revenue cap of €77,700/year and the inability to deduct your actual expenses.
If you are looking to minimise your social security contributions, the SARL (majority manager under the TNS regime) is generally more advantageous. If you favour flexible bylaws, better social protection or the ability to optimise through dividends, the SAS is preferable. For a solo management business with no investor plans, the EURL is often the best compromise.
The ideal moment is when your revenue reaches €50,000 to €60,000 per year. At that stage, you are approaching the cap and your actual expenses probably exceed the 34% flat-rate allowance. Anticipate the transition: setting up a company takes 2 to 4 weeks.
Not necessarily. The Carte G is only mandatory if you collect rents on behalf of owners. If the platforms (Airbnb, Booking) pay the owners directly and you invoice your services separately, you can operate without a Carte G. This "service provider" model is the most common among new rental management businesses.
Under the micro-entreprise, social security contributions are 21.1% of revenue for services (BNC). You benefit from a flat-rate tax allowance of 34% and are VAT-exempt below €36,800 in revenue. The optional flat income tax settlement (2.2%) is available subject to income conditions. That comes to around 23.3% of revenue in contributions + tax.
There is no universal answer. To get started with revenue below €50,000, the sole trader (auto-entrepreneur) is optimal (23% of charges all in). Beyond that, the EURL under the TNS regime offers the best cost/protection ratio. The SAS becomes attractive if you optimise through dividends or plan to bring in investors. Ask your chartered accountant for a simulation with your real numbers.
Launch your rental management business on the right legal footing
Our free 8-chapter training covers choosing your structure, setting up the business, the Carte G and every step to launch your rental management business with confidence.
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