❌ Difference #6
Forgetting to pay yourself... or doing it any old way
‘I'm not paying myself anything at the moment; I'm reinvesting everything in the company.’
‘I need some cash this month, so I'm transferring some money to myself.’
🧮 These are decisions that may seem insignificant... but can have serious consequences, both fiscally and legally, as well as in terms of accounting.
Why it's important
The manager is often the last to pay themselves. Out of caution, or because they are unsure how to go about it.
And when he does so, it is sometimes without a clear framework: he makes a transfer to himself, without knowing whether it is:
- a salary?
- a dividend?
- a reimbursement of expenses?
- a current account debit?
However, these distinctions have a direct impact on:
- 📜 the law (social security, URSSAF, legal rules),
- 💶 taxation (income tax, social security contributions),
- 📘 accounting (and therefore annual accounts, results, cash flow).
💡 Getting paid is normal.
Même si vous êtes 'at launch' or 'still growing' » :
- You are working.
- You bring value.
- You are liable.
It is therefore legitimate to be remunerated for this, provided it is done correctly.
🧾 What are your payment options?
The method of remuneration depends on the legal status of your company and your own status as a director (self-employed, employee equivalent, minority manager, etc.).
The main options:
Way | Status | Taxation | Social security contributions | Frequency |
Management remuneration | Manager (limited liability company/single-member limited liability company) | Income tax (category: salaries and wages) | Yes (URSSAF – self-employed scheme) | Monthly or quarterly |
Salary (chairperson of a single-member private limited company/single-member private limited company with simplified accounting) | Assimilated employee | Income tax (same as employee) | Yes (standard contributions) | Monthly (pay slip required) |
Dividends | Partner | Income tax (Flat tax 30%) %° | Sometimes social security contributions (depending on percentage of shares + status) | Once a year (after the AGM and allocation of profits) |
Reimbursement of expenses | All statuses | Not taxable (if justified) | Not subject to contributions | Downstream |
Current account debit | Partner | No immediate tax implications | No charge | Free, but compulsory monitoring |
🔎 It is not the form of the bank transfer that determines the nature of the direct debit.
It is the legal and accounting treatment that you will give it, with your chartered accountant.
🚨 What you should never do: a shareholder current account in debit
When a manager makes personal withdrawals in excess of what he or she is legitimately entitled to receive (salary, expenses, dividends), this creates a debit balance in the shareholder's current account.
In other words:
- Instead of the company owing money to its manager, it is the manager who becomes indebted to the company.
- It is no longer the company that is financed by its director, but the director who is financed by the company.
⚠️ And that is strictly forbidden!
Because this amounts to treating the company as a bank that lends money to its director.
However, banking is strictly regulated in France.
⚖️ And the penalties are not symbolic...
- This is not just a simple tax penalty.
- This is not an increase in corporation tax.
- It is a criminal offence: misuse of company assets, or even illegal banking activities.
👉 And this can lead to severe personal penalties (fines, disqualification from management, or even imprisonment).
What we recommend
- Establish a clear framework that is tailored to your business and your status.
- Keep accurate records of all personal payments: salaries, expenses, dividends, reimbursements.
- Reject any logic of 'I dip into the till' .
- And above all: never pay more than you are entitled to.
💬 If in doubt, discuss it with your accountant before making the transfer. They are there to protect you – including from yourself.
The expert's tip
- Getting paid is normal. But it must be traceable and regulated.
- Any unjustified payment creates a major legal risk.
- A debit shareholder current account is prohibited: the company cannot finance you.
- The authorities take this matter very seriously: the penalties are criminal, not just financial.
- The key is anticipation: the sooner you ask the question, the more likely you are to avoid unpleasant surprises.