Taxation: where, how, and do you have to declare your income as a camgirl / camboy in France?

Not a very sexy topic but one that is no less important for a camgirl or camboy: taxation. Starting to work in the adult industry is great, but in France you have to declare your income. So how do you do it?

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You should know that in France all work must be declared – if you don’t, it’s known as “undeclared work”. And since being a camgirl / camboy is recognised as a legitimate occupation generating income, it must be declared. While you can choose the form of business you want, you need to think carefully about the advantages and disadvantages of each before deciding on one. 

 

How should I choose to declare my business in France? 

You will have to set up your business in order to be recognised by the state and pay your taxes. To do this, you can choose to register your business as one of these: 

  • sole trader, or micro-business (same thing).
  • sole proprietorship (EURL or SASU).

You see, it’s simple. At first glance. The choice will rest mainly on the administration that needs to be managed and the obligations associated with the chosen form of business. The choice will also depend on your family situation and your projected turnover. Glamourous, isn’t it… So if the word “taxation” really gets on your nerves, remember to study each form of business carefully so that you don’t find yourself drowning in paperwork and don’t hesitate to get advice from a professional: an accounting firm or a chartered accountant. And to get you started, I’ll help you out a bit.

 

Micro companies (formerly sole traders)

This is the most simple type of business there is. And it’s the only one that won’t cost you anything if you don’t earn anything. It’s really practical for declaring your income as a camgirl / camboy, very simple to create, light on taxation, and doesn’t require much management. It’s fast, easy, and it’s the business type that I chose. 

In addition, it is good to note that you can have a micro-business and also still be considered an employee, but do check the clauses in your contract.

It’s super simple to become self-employed. There’s no need to leave the house, you can create your business in 10 minutes online. If you prefer to do it in person, you could always go to your nearest Ursaaf, there are people there to help you and answer all your questions. And they’re happy to do it. When you sign up, choose code APE 96.09Z (other personal services). Another positive point is that if you are unemployed or on the RSA at the time of registration, or if you are between 18 and 25 years of age, you can benefit from ACCRE. This is a benefit which means you’d need to pay practically nothing in social contributions for the first year your business is active.

A Simple Business Type

Once you’ve created your business, you will still have obligations and rights. Even though this gives you a very light tax burden (-5% tax on your income in the first year, increasing to 22% after 3 years), you still have to declare your income each month online, and keep your accounts in a paper notebook. You must “also have a bank account entirely dedicated to your work (with online banks, you can do everything discreetly these days and avoid management fees). You’ll also be subject to CFE and maybe to VAT if your turnover is more than €35,200 per year, and you have a ceiling of up to €70k per year. 

Another positive point

Having income from a micro-business also allows you to have social security, to contribute to a pension fund and to a professional training fund (it’s automatic). Depending on the amount of income generated, it can also be used to apply for a business loan.

If you exceed the first turnover threshold, then you will be liable for VAT. And you will then be able to deduct expenses from your business (but you must exceed €35,200 in turnover). 

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Finally, something else that may be important. It’s possible to be employed full time and have a micro-business for income on the side. You can find all the information you need on the site dedicated to self-employed people. If you have a question or any doubts, don’t hesitate to send an email or call your local tax office, URSSAF, or CFE. The people who work there are there to help you and to answer your questions. 

 

Sole Proprietorship

It may appear to have more advantages than self-employment, but the tax situation for sole proprietorship is far from simple. Setting up a sole proprietorship allows you to deduct all your professional expenses, equipment purchases, entertainment expenses, etc. without necessarily being limited by a ceiling, but there are so many things to know, to manage, to think about… personally, I got scared as I didn’t feel I was able to take on the role of accountant too. If you opt for an EURL, I advise you to contact an accounting firm to deal with the administrative management.

The business type known in France as “l’entreprise invididuelle au réel” or “entreprise en nom propre” is the oldest form of sole proprietorship. Most craftsmen, traders and professionals who work alone operate this type of business. Sole proprietorship has the advantage of simplicity, but it’s far from being free of drawbacks…

Legal Status

In a sole proprietorship, the company and the entrepreneur are legally the same person. The business has the same name as the entrepreneur (this is why in French it’s sometimes called “entreprise en nom propre” – company under own name). As a result, the personal and professional assets are confused, but there is an option which makes it possible to limit your personal liability: creating an EIRL (“entreprise individuelle à responsabilité limitée” – a limited company). In the latter case, you will be asked to draw up a list of your assets and what you use them for so that the assets used for your business and those exclusively for personal use can be distinguished.

In a sole proprietorship, the turnover is not limited (unlike with a micro-business) and you’re able to hire people. VAT is compulsory above the thresholds of €33,100 for the supply of services and €82,800 for the sale of goods. Running a sole proprietorship is a real job, with bookkeeping. The head of the company is self-employed and in most cases contributes to RSI.

There are 2 major advantages: 

  • In contrast to a micro-business/self-employment, as a sole proprietorship you will have real accounting, a balance sheet and an annual profit and loss account, which will give you more leverage against banks and suppliers. You will have to choose a chartered accountant to draw up these documents. Unless you feel you’re capable of doing the bookkeeping yourself This is more risky, especially in the event of a tax audit.
  • Unlike in companies, there is very little legal bureaucracy in sole proprietorships. No articles of association to be drawn up, no minutes of ordinary or extraordinary general meetings, no legal register, no filing of annual accounts. Your chartered accountant will therefore cost you less than it would for a EURL, SARL, SASU or SAS.

There are 3 considerable drawbacks: 

  • The most significant drawback of sole proprietorship is how social security charges are calculated. Contributions are levied on the basis of business’s actual annual profit (net profit). While in a company, contributions are deducted from the salary that the head of the company decides to pay himself. This can change everything, especially if the profit for the year is high.
  • If you are an unemployed person receiving benefits and you are applying for the maintenance of rights (ARE) at the same time as starting your sole proprietorship, Pôle Emploi will ask you for your annual net profit as soon as it is known. That can result in a regularisation of what you’ve been paid: that can hurt! Whereas in a company subject to corporate tax, you could have declared to Pôle Emploi that you were paid €0 to avoid any regularisation of payments afterwards.
  • It’s not possible to sell a sole proprietorship. Although it is possible to resell parts or shares of a company. You will only be able to sell your business capital, which is often less well valued…

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In Conclusion

You can choose the type of business that you would prefer. But if you like simplicity, having a micro-business would definitely suit you the best. It’s the most simple, and it offers a fair amount of headroom before hitting the ceilings. And requiring a minimum of management time, it is ideal for the nature of our work. 

 

Bonus Advice

If you are still unsure about your status and how to report your income, you can ask your livecam platform for help. They are usually happy to advise you and can give you a few tips on how to avoid making mistakes in your declarations.

 

That’s it, you know everything, all you have to do is find customers, keep them, and transform that relationship into a win-win situation.

 

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