SAS or SARL for a property dealer: what tax differences?

For a commodity business, the choice between SAS and SARL should not be reduced to a social preference.

Both structures may allow for the same activity, but they do not necessarily offer the same efficiency depending on how the manager wishes to pay, keep cash, reinvest profits or change ownership.

The right choice depends mainly on the future use of the benefits

A commodity business can generate large but irregular margins.

So the central question is what we want to do with this cash flow: to distribute it, leave it in the company, finance new acquisitions or gradually structure a real estate group.

The firm then analyses the taxation of remuneration, dividends, reinvestment and future flows in order to determine which social form offers the best balance for the project.

Thinking from the start about growth in activity

The chosen form must also remain appropriate if the activity develops: association with new partners, creation of a holding company, multiplication of operations, diversification to other real estate activities or preparation of a disposal.

Therefore, the firm does not only compare SAS and SARL on their immediate cost. He appreciates their ability to support the development strategy over time and to preserve the fiscal performance of both the executive and the company.

Master Edouard Pruvost specializes in consulting on real estate tax strategy and structuring the activities of a merchant of goods. The firm compares the various corporate and tax architectures to identify those that offer the best balance between remuneration, reinvestment, growth and retained net worth. To have your project analysed and to benefit from tax strategy advice, contact the firm.