Wage portage vs micro-enterprise: which one to choose?

The advantages of wage portage

In wage portage, the wage ported employee benefits from numerous advantages. First of all, they do not have to create a company or carry out all the legal formalities that this implies, such as registration in the trade register.

Considered an employee, they benefit from all social advantages and complete social coverage. They contribute, therefore, to a provident insurance, a company mutual, unemployment insurance, and retirement funds.

Although they have employee status, the consultant retains their autonomy in carrying out their missions. They remain free in managing their schedule, choosing their clients, and during contractual negotiations.

Moreover, by exercising their activity in wage portage, they are not limited to a certain revenue threshold and have the possibility to deduct their professional expenses (travel, accommodation, meals, telecommunications, prospecting, equipment, etc.).

The disadvantages of wage portage

In return for receiving social advantages and the services of the umbrella company (billing clients, paying salaries to the wage ported employee, managing administrative tasks, etc.), the consultant is liable for payroll and employer charges as well as management fees.

Furthermore, the higher the revenue, the more significant these fees will be.

Finally, the consultant is subject to VAT regardless of the declared revenue.

The advantages of the micro-enterprise

What often attracts entrepreneurs to the micro-enterprise is the total independence it offers. The micro-entrepreneur has a great deal of flexibility in carrying out their missions and is free to engage in a wide variety of activities.

The micro-enterprise can be a very good choice for testing one's activity and launching as an independent due to its simplified creation and management formalities.

Finally, the remuneration may be higher because the auto-entrepreneur has no management fees, and their social contributions and tax charges are lower, especially in the first year. Additionally, they are not subject to VAT if they do not exceed the revenue threshold.

The disadvantages of the micro-enterprise

Given that social contributions are lower in a micro-enterprise, the auto-entrepreneur benefits from a lighter coverage that does not include provident insurance, mutual insurance, unemployment insurance, and their retirement contributions remain very low.

Another point to consider is that the auto-entrepreneur is limited to a certain revenue that they cannot exceed.

Finally, they are unable to deduct their professional expenses.