# SASU or EURL: which should you choose in 2027?

Updated : 2026-10-22 · Source : https://legalrapide.fr/en/guides/sasu-ou-eurl/

The SASU and the EURL are both single-shareholder companies. The main difference is the director's social security status: the SASU president is treated as an employee (higher contributions, no contributions without pay), while the EURL manager is self-employed (lower contributions, but minimum contributions are due even without income). On formation costs, the EURL is slightly cheaper: €201.96 versus €223.56 incl. VAT in legal fees at current rates.

## The comparison
| Criterion | SASU | EURL |
|---|---|---|
| Director | President, treated as an employee | Sole shareholder-manager, self-employed |
| Contributions on pay | Higher, coverage close to employees' (excluding unemployment) | Lower |
| Without pay | No social security contributions | Minimum contributions due |
| Dividends | Flat tax (PFU) of 31.4%, current rate (or progressive scale) | EURL subject to corporate tax: portion above 10% of capital subject to social security contributions |
| Default taxation | Corporate tax | Income tax (corporate tax option available) |
| Freedom in drafting the articles | Very wide | Framed by law |
| Legal formation fees (current rates) | €223.56 incl. VAT | €201.96 incl. VAT |

## Three profiles
- **Consultant starting out with little income and receiving ARE (unemployment benefit)**: a SASU without pay often lets you keep the allowance; see [SASU and ARE](/en/reponses/sasu-are/).
- **Freelancer who wants to draw a regular salary at the lowest social security cost**: the EURL is often cheaper.
- **Project that will bring in partners or investors**: the SASU becomes a SAS without changing legal form.

## Before you decide
Compare using your own figures with the [Urssaf simulator](https://mon-entreprise.urssaf.fr/). For personalised trade-offs (pay, dividends, pension), seek advice from a chartered accountant or a lawyer.

## FAQ
**Is a SASU more expensive than an EURL?**
For the same pay, the SASU president's contributions are higher. At formation, the SASU costs €21.60 incl. VAT more (legal notice).

**Can you convert an EURL into a SASU?**
Yes, through a company conversion, which is an amendment formality.


## Sources
- [Service-public: social protection of company directors](https://entreprendre.service-public.gouv.fr/vosdroits/F38152)
- [Service-public: income of company directors](https://entreprendre.service-public.gouv.fr/vosdroits/F36065)
- [Service-public: change in the PFU rate (2026)](https://entreprendre.service-public.gouv.fr/actualites/A18796)
- [Service-public: choosing the legal form](https://entreprendre.service-public.gouv.fr/vosdroits/F23844)
- [Service-public: 2026 legal notice rates](https://entreprendre.service-public.gouv.fr/actualites/A18724)