The director’s social security status
The chairman of an SAS falls under the general social security scheme: the cover is better, but contributions amount to around 75% of net pay. The majority manager of an SARL is treated as self-employed: contributions are lower, around 45%, for less cover.
If you plan to pay yourself a regular, modest salary, the SARL is cheaper. If you favour dividends or full social protection, the SAS takes the lead.
Freedom in the articles
The SARL is framed by statute: majorities, share transfers and the manager’s powers are largely set by the Commercial Code. That is reassuring for a family company.
The SAS leaves almost everything to the articles. This freedom allows relations between shareholders to be organised in detail, but it demands carefully drafted articles.
Bringing in investors
Preference shares, warrants, tag-along clauses: these tools exist only in an SAS. If fundraising is on the cards, however distant, it is better to start with this form than to convert the company later.
This article provides general information and does not constitute advice. Every situation calls for its own analysis.
