The realization of your Business Plan will be an important step:
Creating and starting a construction business requires determining the legal status of the business to know if it is a business in addition to your activity or if you want to start a company. It will make it possible to state the financing because creating a renovation company has a cost. The entreprise de renovation is advisable to take note of the necessary qualifications because a company related to the building is a craft activity that requires a diploma or an experience of at least three years.
Company creation offered and as a bonus great advice to become a true entrepreneur. Open a bank account dedicated exclusively to the collection of revenue from this activity, take out professional insurance, and register in the trades directory. This status is ideal for annual revenues that do not exceed a certain threshold, it allows you to start the activity without administrative and accounting complications.
But this status has limits:
The status that does not allow to associate with several entrepreneurs, the difficulty of access to certain markets. The auto-entrepreneur status remains a good option to test your project in the building industry or to start a secondary activity.
Several other solutions are available to you in terms of choice of status:
The micro-enterprise, which in the event of overspending can be switched to a sole proprietorship, is an interesting solution for the future hotelier. Indeed, it has the advantage of presenting no costs in the event of zero turnovers. It will make it possible to dissociate the personal funds and the funds allocated to professional activity. It is also possible to create a limited liability company or its one-person version. By doing so, you create a company with separate assets from your account, and you allow your renovation business to be transferred.
The primary benefit of this form of legal status is limited liability:
The partners are only jointly and severally liable up to their contributions to the company. A partner’s voting right will be equal to the height of his capital share. The manager of the company, if he is a partner, benefits from the same advantages as an employee except for unemployment, because he is an employee assimilated worker. They represent advantages for the managers of the company, in that they are assimilated employees and therefore benefit from the protection of the general system.
Another important point:
If there is no remuneration, there will be no social security contributions to pay. This status also leaves a lot of freedom to the partners. These can decide on the nature and functions of the leaders, as well as how the decisions of the partners will be taken. The forecast turnover is quite difficult to assess in the renovation business sector because the time taken to acquire the first sites is difficult to predict. A good market study and the start of prospecting are two assets at this level, and, in the absence of certainties, it is sometimes preferable to voluntarily postpone the start of activity for reasons of caution. The turnover resulting from subcontracting at the start is easier to budget since the main lines of the contract are known before the creation of the company.