Running a seasonal business can provide many opportunities for entrepreneurs. Whether you have your status as an auto-entrepreneur or are planning to become one, understanding and taking advantage of the benefits of a seasonal business can help you maximize your income throughout the year. In this article, we’ll explore what a seasonal business is, why it might be good for you, and provide some practical advice based on your situation.
How to carry out a seasonal activity when you are self-employed?
To understand how to carry out a seasonal activity, we will start by defining this term.
Seasonal activity, definition
A seasonal activity is an activity limited in time. It generally lasts a few months and is often linked to holiday periods… And as its name suggests, to a season, in the broad sense of the term. It is during these periods that companies see their turnover fluctuate significantly. This is why, to compensate for the surplus of activity, they hire seasonal workers.
What activities are excluded from self-employed status?
You should know that certain activities are prohibited as a self-employed person, although most of them (commercial, artisanal, liberal, or agricultural) are authorized. Here is a list of activities formally prohibited in micro-enterprises:
- Activities related to carrying out transactions on the financial market
- Vehicle or pleasure boat rental activities
- Freelance Journalism Professions
- Medical activities
A special case for real estate activities, the majority of real estate activities are impossible to exercise under the status of auto-entrepreneur. The only ones authorized are building management and non-professional furnished rentals. All other activities are prohibited.
Who are the seasonal activities for?
Seasonal activities are covered by students because, most often, they are contracts of 2 to 4 months. In addition, job offers are generally in line with their school vacation periods. It’s a way for them to discover the world of work by making pocket money. The fields of activity are varied, but it is particularly for tourism or construction that seasonal activity is mentioned.
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The advantages and disadvantages of the status of an entrepreneur to carry out a seasonal activity
The status of an entrepreneur can represent an opportunity for all people in search of freedom, but for others, the administrative procedures are a brake. But then, why choose this status for your seasonal activity?
The Recreation of the status of entrepreneurs has been set up to facilitate business creation. This is why the 1ᵉʳ advantage of the auto-entrepreneur status is linked to the simplification of the administrative procedures for creation. Indeed, becoming an entrepreneur requires lighter formalities than creating a company (SARL, for example). You will not need to deposit capital in a bank, write company statutes, or publish a legal notice to create your micro business.
You must fill out a creation form on the one-stop job shop and attach some supporting documents (copy of identity document, proof of address, places of practice, etc.). Another advantage: the creation of a self-employed company is completely free if you carry out your steps alone and online. In some cases, there may be registration fees, but this is quite rare.
You get a simplified tax regime(exemption from VAT, flat-rate deductions for professional expenses depending on the activity, then profits taxed at IRPP). The same applies to social security contributions: in the event of no profit, no social security contribution is due (unlike a sole proprietorship).
Regarding the disadvantages of the status, it is important to point out that it is only suitable for small businesses. Development prospects are limited. Your assets are particularly exposed.
In addition, you are subject to the micro-fiscal regime, and as such, you cannot deduct any professional expenses from your turnover. Thus, the costs incurred in respect of the activity, such as the CFE, the costs of opening a bank account, the costs of taking out civil insurance, or the purchase of equipment, are not deductible.
How to practice a seasonal activity as a self-employed person?
As an Auto entrepreneur, starting a seasonal activity requires prior preparation. We will provide you with the keys necessary to make your project a success.
How do I look for a seasonal activity?
Are you looking for a seasonal job as an entrepreneur? As for the search for exercise or normal activity, you can consult websites such as Indeed, or Welcome To The Jungle to find advertisements that can offer you a job in CDD or self-entrepreneur status.
Start your search as early as January or February if you are looking for a summer job. You will have the choice of trades: among the ice cream makers, for example. Many seasonal workers turn to this type of job, especially during the summer period.
However, it is not too late to apply just before the season. You will be able to position yourself in sectors in tension (such as hotels, restaurants & entertainment companies…).
How to declare income from a seasonal freelance activity?
To declare your income as a self-employed person, you must complete form 242 C-Pro. Don’t panic, and you will be automatically redirected to the checkboxes.
Here are the steps to follow. Log on to your personal space on the impos.gouv.fr website and click on “Access the online declaration.” Then, fill in the changes to your family situation, if necessary, and your personal information. Once these steps have been completed, you arrive at the revenue and expense step. This is where you must indicate your types of income for year N-1; the boxes to be filled in differ depending on your situation. For all the details on freelance management, it’s here.
How to declare the cessation of seasonal activity?
In the event of voluntary cessation of activity, it is particularly easy and quick to close your own business voluntarily. By completing the P2-P4 form, you are declaring your modification or cessation of activity to the formalities center on which you depend. Then, you send it to the competent CFE, who will take care of the administrative procedures.
You do not need to be deregistered if you want to start your activity again the following year. This declaration does not affect social contributions. However, this process is repeatable once.