need some advise.

[glacier1]

Hi guys,

Like many of you I'm sure, I've started my gite/chambre d'hotes under an entreprise individuel (because I was going to take people on tours of the region, sell wine and products etc etc.  I am 1 and a half weeks in and I have this gutsy feeling in the pit of my stomach that I've made a big, catastrophic mistake with starting the business as an entreprise individuel.  Regardless of my earnings for year 1, I shall be taxed heavily and lumbered with a 4,000 euro charge for health care.  I for one find the stress of starting up a business here too much to handle even without knowing all the charges which are coming up.  I feel the guillotene is been sharpened for me as we speak. 

I have talked over this with my partner, if I can rent the gite out as a perminant rent, and then just run the business as a B&B, can I also change the status of the business FROM entreprise individuel to one that works on the basis of my earnings?  I am a nervous wreck, what with the work I've undertaken to get this far, and now the charges facing me and the lack of clients (I know it's early days).  Should I be worried?  I'd rather be working for a company earning 1,200 euro per month and come home quietly than having the sleepless nights I'm getting now.  Why did i do it then, I hear you ask?  I love the thought of starting up a business with tourists, wine tasting etc etc, but went the crunch comes, I am crumbling under the pressure.  Plus Gordon brown kindly taxed us in Jan for 15,000 euro for a bill outstanding (which we never knew exsisted), this has eaten up our lifeline, all because of inheritance taxes after my father died, as if loosing someone wasn't hard enough to bare!

Please tell me what you advise I do, as I am currently lost.  Many thanks

David

[Cerise]

I think you need to ask for professional advice.  A lot depends exactly what your business does, what your partner does etc.  Start with the Chambre de Commerce who will tell you if you can deregister and re-register as an AE.  Most departments now have some kind of association linked to the C de C who help with business set-up etc so they should be able to point you in the right direction.If your partner works elsewhere and you could be considered a dependant then you may not need to register a B & B at all - simply declare at the Mairie and declare tax under the micro-foncier system.  Presumably you have an accountant and they should be earning their money by advising this sort of thing.  Contact those asking for cotisations, tell them you have no income yet and ask for delay in paying.

Things aren't too bright in the tourist trade at the moment and France is a VERY expensive country to work in.  But get help, keep positive and things will pick up.  It takes time to get known.  If you have no guests, use the time to visit the local Tourist Offices, Mairie etc and tell them all about yourself and your business.  Ring up the secretaries of local associations and propose your services to them for any events. Be as bright, breezy and businesslike as you can, invite people to look round and tell them what you do.  Contact local venues for weddings etc and ask them to send you any overspill for accommodation.  Promote yourself and keep busy - sitting at home worrying makes things worse.

I am sorry you feel so pressurised and hope you can work towards a solution.  Keep asking the questions and hopefully some answers wll come along.

[LisaJ]

David, you need to go and see RSI. They can be flexible over the charges if you can give them a good estimate of your actual earnings. We got the first and second year contributions for our micro-entreprise reduced to reflect our actual revenue. I wouldn't try and do it by phone, letter or email; we have found the face-to-face contact works best.

regards

L

[glacier1]

Thanks for that guys, I am going to my local chambre of commerce and I will speak to them, in fact, I might just stop the business as opose to change it thanks to what you've said, I can still continue the B&B side of it while renting the gite out like an appartement for local people (I should be able to earn something like 600 or 650 euro per month this way and it's a good way to get money coming in while the B&B side of it builds. 

It's a question of getting noticed, I agree, but I have reached out and met some of my fellow b&b/gite owners and they are dead quiet which is unusual, they all blame "la crise", I might add that it doesn't help that when I tell them I started a business to run them both they go pale and say "vous sortez j'amais de ca!" or, you'll never get out of that......meaning it's a death penality for the business. 

OK, in order, I am going to the Chambre of Commerce Tuesday and I shall speak to them, it doesn't seem to be suiting me this regime, but I will stop it in September, yesterday we had 6 guests come in, our first!  2 in the chambre d'hotes with meals, and 4 in the gite.  It went great, good experience.  But I do not like renting per night, I have to because we need the income, but I do not like to, because it's a lot of work for little money.  This is how I'm trying to adapt to be known. 

I've done the office de tourisme thing yesterday, wearing my best face promoting my business, I gave them around 50 flyers and 100 cards, see how that goes.  I will also talk to people in local businesses/tourist atractions and find out if they too can promote me.  We'll see.

Oh and another question, the tax for the chambre d'hotes is 19.6% + tax de sejour isn't it??  Silly question but I forgot to ask in the Chambre de Commerce

Thanks guys, I'm really new at this, but I'll get there for this summer, winter time I'll shut down shop, I think it's best (and keep the B&B side running)

[Cerise]

Be sure your commune requires you to pay taxe de séjour.  Not all do.   By tax do you mean TVA?  I would not have thought you would be TVA registered.