The personal services sector encompasses 26 activities carried out in the homes of individuals, from housekeeping to assistance for the elderly. Before starting a business in this field, several parameters determine the project’s viability: legal status, declaration or approval regime, and especially the new rule on exclusive activity that recently came into effect. Comparing these parameters allows for measuring the gaps between the different possible configurations.
Exclusive activity or hybrid model: what the 2024 decree changes for personal services
Most guides on home services present the condition of exclusive activity as an absolute constraint. This requirement forced personal service structures to only provide home services for their clients to retain the tax credit.
The finance law for 2024, specified by decree no. 2024-851 of July 25, 2024, has modified this rule for micro-entrepreneurs and structures with fewer than ten employees. Activities outside of personal services are now tolerated as long as they remain accessory and do not exceed 30% of the total revenue from the previous year.
In practice, a self-employed person specializing in home cleaning can also offer cleaning services for professional premises. As long as personal services remain the main activity, individual clients retain their tax advantage.
This hybrid model opens up diversification opportunities that did not exist before, and it should be taken into account from the drafting of the business plan. For more information, you can find useful information on Wiki for Home regarding preliminary steps and regulatory obligations.
Legal status and tax regime: comparative table for home services
The choice of status determines taxation, social protection, and the ability to hire. Here are the most common configurations in the personal services sector.
| Criterion | Micro-enterprise | SASU | SARL / EURL |
|---|---|---|---|
| Creation formalities | Simplified online declaration | Drafting of statutes, filing with the registry | Drafting of statutes, filing with the registry |
| VAT | Exemption (below revenue threshold) | Subject to VAT from the first euro | Subject to VAT from the first euro |
| Annual revenue cap | Limited (micro regime) | No cap | No cap |
| Social protection of the manager | General regime (contributions proportional to revenue) | Employee-like status | Self-employed (majority manager) or employee-like status |
| Compatibility hybrid model (2024 decree) | Yes (subject to max 30% outside personal services) | Yes (subject to max 30% outside personal services, fewer than 11 employees) | Yes (subject to conditions) |
| Hiring employees | Possible but not well-suited | Well-suited | Well-suited |
The micro-enterprise remains the fastest status to create for testing a personal services activity. However, the SASU offers better social coverage for the manager and allows for welcoming investors. The choice depends on the targeted activity volume and the willingness to recruit in the short term.
Personal services declaration or approval: two regimes with very different consequences
Not all personal services activities fall under the same administrative regime. Confusion between declaration and approval is common, and it can be costly.
- The declaration is a voluntary process with the DDETS (Departmental Directorate of Employment, Labor, and Solidarity). It allows clients to benefit from the tax credit and enables the structure to access the immediate advance of the tax credit.
- The approval is mandatory for activities carried out with vulnerable populations (children under 3 years old, dependent elderly people, people with disabilities). Without approval, the exercise of these activities is simply prohibited.
- The departmental authorization, issued by the departmental council, concerns home autonomy services (SAD) that intervene with beneficiaries of the APA or PCH. This regime involves a specific set of requirements and regular quality control.
An entrepreneur wishing to offer cleaning and gardening only needs the declaration. Those considering caring for children under 3 years old must obtain approval before any intervention. Operating without approval for an activity that requires it exposes one to penalties and the inability to provide clients with the tax credit.
Deadlines and renewal
Approval is granted for a period of 5 years and must be renewed. The declaration, on the other hand, has no limited duration but can be revoked in case of non-compliance. Anticipating these administrative deadlines from the launch avoids interruptions in activity.
Tax credit and immediate advance: the commercial lever of the personal services sector
The 50% tax credit on personal services expenses remains the main selling point for individual clients. Since the extension of the immediate advance mechanism, the client only pays half of the bill at the time of payment, with the other half being paid directly by URSSAF.
This mechanism changes the perception of price. A cleaning service billed at 30 euros per hour actually costs the client 15 euros. For the entrepreneur, mastering this mechanism and being able to explain it clearly represents a direct competitive advantage.
The tax credit has also been extended to new services, such as certain remote monitoring activities or home IT assistance. Verifying that the envisaged activity falls within the scope of the 26 eligible activities remains a necessary prerequisite for any declaration.
The choice between micro-enterprise, SASU, or SARL depends on the volume of activity and the need to recruit. The hybrid model authorized since 2024 allows for income diversification without penalizing clients from a tax perspective, provided the 30% cap on activities outside personal services is respected.
The administrative regime (declaration, approval, or authorization) directly conditions the accessible populations and the transferable tax benefits. These three parameters, cross-referenced from the market study, determine the project’s robustness much more than just the choice of activity.
