EIRL: Definition, Status and Taxation in 2026

Marc set up his plumbing business in 2015 under France's EIRL status, on his accountant's advice. Ten years later, he gets an email from URSSAF mentioning that the regime has been scrapped, and he's not sure what it means for him. Does his business still exist? Does he need to start over?

EIRL (entreprise individuelle à responsabilité limitée) was a French legal status that let a sole trader shield personal assets from business debts without forming a company. New EIRL registrations stopped on May 15, 2022, replaced by the single sole-trader status known as EI. Businesses registered as EIRL before that date keep running exactly as before, with no obligation to change anything.

What did the EIRL status actually mean?

EIRL let a sole trader file a "declaration of allocated assets," a list of business assets kept legally separate from personal property and shielded from business creditors. Under the ordinary sole-trader rules that applied before 2022, all of an owner's assets, business and personal alike, were on the hook for business debts. EIRL carved out equipment, premises, and stock from the rest: the family home, personal savings, and so on.

Created by a law dated June 15, 2010, EIRL was long pitched as a middle ground between a plain sole proprietorship and a single-member limited company. It also let the owner pick a tax regime, income tax by default or corporate tax by election, a rare option for a sole trader at the time. The official definition is still available on impots.gouv.fr.

Why EIRL stopped existing in 2022

Law n° 2022-172 of February 14, 2022 on independent professional activity removed the option to register a new EIRL as of May 15, 2022. Lawmakers replaced it with a single sole-trader status that keeps EIRL's core idea, separating business and personal assets, but applies it automatically, with no declaration to file.

Why the change? Too few entrepreneurs actually used EIRL, put off by the paperwork: valuing allocated assets, mandatory notary involvement for property, a chartered accountant required above 30,000 euros. The new EI status drops these steps while keeping the asset protection. What EIRL offered as an opt-in, EI now does by default. The full rules sit on the official service-public.gouv.fr page.

The broader picture gives a sense of scale. According to Insee, 1,165,800 businesses were created in France in 2025, driven by micro-entrepreneurs (+6%), while classic sole-trader registrations kept declining (-4%). Most of these new founders never dealt with EIRL at all; they choose directly between EI, micro-entreprise, or a company structure.

EIRL, EI, and EURL: how they differ

EIRL protected a voluntarily declared set of business assets, EI automatically protects personal assets since 2022, and EURL creates a separate company with its own legal identity. All three solve the same problem, limiting financial risk, through different mechanics. A detailed comparison sits on bpifrance-creation.fr.

Status	Asset separation	Setup formalities	Corporate tax option
EIRL (before 2022)	By declaration, listed assets only	Asset declaration, notary sometimes needed	Yes, by election
EI (since 2022)	Automatic, personal assets protected	No extra paperwork	Yes, by election
EURL	Separate legal entity, assets split by structure	Bylaws, registration, free share capital	Corporate tax by default, or income tax for 5 years

In practice, most freelancers weighing EI against EURL today don't need to think about EIRL at all: it's simply not on the menu anymore. The real choice is between staying a sole trader (EI) or forming a company, and that mostly comes down to expected revenue and the social security regime you want.

EIRL taxation: what happens if you still have one?

An EIRL set up before 2022 keeps its original tax treatment, income tax by default or corporate tax if that election was made, with no requirement to migrate to the new EI status. Nothing forces Marc, our plumber, to close his EIRL and reopen as an EI. Both regimes exist side by side, legally.

Under income tax, the owner is taxed on the full business profit, under either the BIC or BNC category depending on the trade. Under corporate tax, only the salary actually paid out to the owner is taxed as personal income; profit left in the business is taxed at the corporate rate, 15% up to 42,500 euros and 25% above that, subject to conditions. An EIRL owner on corporate tax with a strong year can smooth out personal tax by capping their own pay and keeping the rest as retained earnings.

Should you convert an existing EIRL into EI or a company?

There's no requirement to convert an EIRL into EI: both statuses coexist, and switching only makes sense if you want lighter paperwork or a cleaner profile for banks and lenders. In practice, many accountants advise leaving a working EIRL alone rather than paying conversion costs for no direct tax benefit.

The question looks different for a freelancer weighing self-employment against wage portage. Wage portage isn't a business legal status at all, it's an employment relationship between the consultant, a portage company, and the end client. Moving from EIRL to wage portage means closing an independent activity to become a salaried consultant, with a payslip, standard payroll contributions, and unemployment coverage, without ever having to manage allocated assets or business accounting.

Frequently asked questions

What exactly was EIRL?

EIRL was a limited-liability sole-trader status that let owners separate business assets from personal property through a formal declaration. It's no longer available for new registrations as of May 15, 2022.

Can you still set up an EIRL in 2026?

No. Since the February 14, 2022 law, only the single sole-trader status (EI) can be created. EIRL remains valid only for businesses registered before that date.

What's the difference between EIRL and EURL?

EIRL stayed a sole proprietorship with a declared set of allocated assets and no separate legal personality. EURL is a full company, with bylaws, share capital, and a legal identity distinct from its single shareholder.

What happens to an EIRL created before 2022?

It keeps running with no mandatory changes. The owner keeps their existing tax regime and allocated assets unless they choose to switch status voluntarily.

Is EIRL compatible with wage portage?

No, they're two different models. EIRL remains a sole-trader status, while wage portage turns the consultant into an employee of a portage company. Plenty of former sole traders move to portage precisely to get out of business administration.

What are the main structures for working alone in France?

The usual options are the standard sole-trader status (EI), the micro-entreprise (a simplified version of EI), EURL, and SASU. EIRL, now historical, isn't part of the options available for new registrations in 2026.

Key takeaways

• EIRL protected personal assets through a declared allocation, before being replaced by the single EI status on May 15, 2022.
• EIRLs created before that date keep operating with no obligation to convert.
• The new EI status offers the same asset protection automatically, with no extra paperwork.
• Electing corporate tax remains possible under EIRL and under EI alike.
• For freelancers who want out of business administration, wage portage offers a salaried alternative, unrelated to EIRL status.

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