Creating a micro-entreprise in France with dual French-American citizenship
Thread poster: Karine Lelaizant
Karine Lelaizant
Karine Lelaizant  Identity Verified
France
Local time: 08:55
Japanese to French
+ ...
Jan 9, 2020

Hello!

I was hoping to connect with translators who have dual French-American citizenship and started a "micro-entreprise" in France from the US. 
1. Were you able to go through the entire creation process remotely? 
2. How long did the process take?
3. Can you use the address of your micro-entreprise in France on the W9 forms you are receiving from your US clients?
4. How are you dealing with taxes? I am aware of the US requirement to report worldwide inco
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Hello!

I was hoping to connect with translators who have dual French-American citizenship and started a "micro-entreprise" in France from the US. 
1. Were you able to go through the entire creation process remotely? 
2. How long did the process take?
3. Can you use the address of your micro-entreprise in France on the W9 forms you are receiving from your US clients?
4. How are you dealing with taxes? I am aware of the US requirement to report worldwide income every year even when living outside the country, but I am a little unclear about double taxation, if and when it applies, etc.
5. Anything you wish you had known before creating your micro-entreprise?

Any other feedback or advice is welcome. Thank you!
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Jean Dimitriadis
Jean Dimitriadis  Identity Verified
English to French
+ ...
Some pointers Jan 9, 2020

Hello Karine,

Note: I am not a French-American citizen, but French-Greek. That being said, here are a few pointers that you could find useful, although I cannot comment on specifics, like W9 forms.

Dual citizenship is one thing, but what is more important is to determine your tax residency status ("residency for tax purposes") and eligibility to set up a "micro-entreprise" in France.

This bilingual EN/FR document from the French tax authorities gives
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Hello Karine,

Note: I am not a French-American citizen, but French-Greek. That being said, here are a few pointers that you could find useful, although I cannot comment on specifics, like W9 forms.

Dual citizenship is one thing, but what is more important is to determine your tax residency status ("residency for tax purposes") and eligibility to set up a "micro-entreprise" in France.

This bilingual EN/FR document from the French tax authorities gives a good high-level overview in that regard: https://www.impots.gouv.fr/portail/resident-de-france-residents-france

As it says, "To determine your residence for tax purposes, international tax treaties establish criteria that take precedence over national legislation".

There is a "Convention between the government of the United States of America and the government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital".

The relevant official documents can be found here: https://www.irs.gov/businesses/international-businesses/france-tax-treaty-documents and https://www.impots.gouv.fr/portail/les-conventions-internationales

Especially, I suggest you review what a "resident" is, as defined in the international treaty.

If you determine that you fit the profile/requirements for creating a "micro-entreprise" in France, you can certainly boot the process online, but I'm not sure you will be able to go through it entirely remotely. You will receive several official communications via the snail mail (at least one requires a response, but you may be able to get away by completing and sending it by email), and there are some follow-up steps that might require a physical presence (for example, in order to receive an EU VAT number), etc.

The first documents start coming in within one or two weeks. I'd say it takes a month or so to be fully operational (as in be able to officially invoice clients anywhere in the world, including EU countries, which requires an EU VAT number, and receive payments). If needed, you can declare a future date as the business start date.

Once the business is set up, almost everything can be handled remotely, assuming you have someone to receive any communications on your behalf when you are not physically present.

---

Tip: In addition to a physical address and a separate bank account for your activity (the latter can wait), I think you will need to hold a French phone number (which can also be used as an address proof at the beginning). In that case, a simple €2 monthly plan can come in handy: http://mobile.free.fr/

[Edited at 2020-01-09 11:20 GMT]
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Laurent Mercky
 
Sheila Wilson
Sheila Wilson  Identity Verified
Spain
Local time: 07:55
Member (2007)
English
+ ...
My 2 cents' worth Jan 9, 2020

I don't fulfil any of your preferences, but I used to have a micro-entreprise in France.

I just wanted to say that I don't believe you can normally set up or retain one if you aren't physically resident in France, i.e. if you don't have a Carte de Séjour, visa that allows you to work, or whatever. Once you have official residency, fiscal residency will generally follow automatically at the end of the financial year that you spend primarily in France. IOW, if you move there in Sept
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I don't fulfil any of your preferences, but I used to have a micro-entreprise in France.

I just wanted to say that I don't believe you can normally set up or retain one if you aren't physically resident in France, i.e. if you don't have a Carte de Séjour, visa that allows you to work, or whatever. Once you have official residency, fiscal residency will generally follow automatically at the end of the financial year that you spend primarily in France. IOW, if you move there in Sept 2019, then you would only become a fiscal resident in tax year 2020, whereas if you'd moved in June 2019 then France would be considered your fiscal residency for the whole of 2019 (assuming you didn't spend very long outside the country after becoming gaining residency -- 183 nights is the magic number).

The reason I think this is the case is that you are being taxed as a physical person as a micro-entreprise, not as a legal entity. Things are very different if you set up a limited company, but I don't know much about them.

[Edited at 2020-01-09 12:08 GMT]
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Karine Lelaizant
Karine Lelaizant  Identity Verified
France
Local time: 08:55
Japanese to French
+ ...
TOPIC STARTER
Only an address is needed Jan 10, 2020

Hello Sheila,

Thank you for taking the time to respond!

I have had confirmed that you can create a "micro-entreprise" in France while living abroad. You do need a physical address there (and a bank account), which I have.


 
Karine Lelaizant
Karine Lelaizant  Identity Verified
France
Local time: 08:55
Japanese to French
+ ...
TOPIC STARTER
Residency Jan 10, 2020

Hello Jean,

I appreciate your taking the time to respond and share links and practical tips - thank you!
I have found a service that is rather affordable and helps you with filing all the paperwork when creating a micro-entreprise. I am checking with them if I will need to be physically in France at any time during the process. I do have a physical address and a bank account in France, and also someone who takes care of my mail there.
I will carefully review the reside
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Hello Jean,

I appreciate your taking the time to respond and share links and practical tips - thank you!
I have found a service that is rather affordable and helps you with filing all the paperwork when creating a micro-entreprise. I am checking with them if I will need to be physically in France at any time during the process. I do have a physical address and a bank account in France, and also someone who takes care of my mail there.
I will carefully review the residency question, as it is complex but key. Having dual citizenship and potentially earning income in both countries, at least at the beginning, is a daunting administrative and tax situation to figure out, but I am in a situation of transition so I need to tackle it. I know that the US is one of the few countries to tax international income earned by US citizens residing overseas, but there are some provisions that help protect from possible double taxation.
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Sheila Wilson
Sheila Wilson  Identity Verified
Spain
Local time: 07:55
Member (2007)
English
+ ...
I gather you will be taking up residency soon? Jan 10, 2020

Karine_L wrote:
I have had confirmed that you can create a "micro-entreprise" in France while living abroad. You do need a physical address there (and a bank account), which I have.

It seems an odd thing to want to do long term, even so. AFAIK, on top of tax, the social security deductions are mandatory and they're around 18-25%. If you can't make use of the healthcare then a lot of money will be going down the drain.

But it does make sense to start preparing a move as early as you can as there's always so much to do.


 
Karine Lelaizant
Karine Lelaizant  Identity Verified
France
Local time: 08:55
Japanese to French
+ ...
TOPIC STARTER
Potential relocation Jan 10, 2020

Sheila Wilson wrote:

It seems an odd thing to want to do long term, even so. AFAIK, on top of tax, the social security deductions are mandatory and they're around 18-25%. If you can't make use of the healthcare then a lot of money will be going down the drain.

But it does make sense to start preparing a move as early as you can as there's always so much to do.


Indeed, this would not be a viable long-term plan for the reasons you mentioned. Personal reasons and the fact that I can no longer freelance in California without incorporating (as of January 1, due to the new AB5 Law) are forcing me to consider various options, and relocating and creating a micro-entreprise in France is one of them.


 


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Creating a micro-entreprise in France with dual French-American citizenship







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