Living in France, Working in U.S.

If you are physically located in France while doing the work, then you are "working in France." Where the employer is located has nothing to do with it.

To telecommute like what you are proposing means that you would be working as a contractor (or, if you prefer "consultant") and not as an employee of the US company. Basically, you bill the US company for your services, and they pay you what you bill, with no taxes, withholdings or benefits taken out. You then are "self-employed" (and in France that means you have to set up some form of business entity to handle the taxes and cotisations) and responsible for making your various payments.

If you expect to take in less than 32,600€ in the first year (yeah, you have to convert from $), then you can start out as an auto-entrepreneur. Details here: Portail Officiel des Auto-Entrepreneurs

If you will be paid more than the limit, then you have to look at establishing something like and EIRL or EURL and that means you'll have to register for VAT and add 19.6% VAT to the invoices you send to your employer in the US.

The AE is actually a pretty nice and easy way to go if you qualify. You get into the French cotisation system and your cotisations and taxes are simplified. On the US side, you declare your gross income and then take the Foreign Earned Income Exclusion, so shouldn't wind up with any tax obligation to the US - though you never lose the filing obligation. (Take a look at the Expat Tax section here for the details on that side of things.)
Cheers,
Bev

le2012 said:

Hi, I currently work as faculty for a university in the US and may have an opportunity to continue (either as adjunct or as employee), developing and teaching online courses while living in Lyon. Do you know if I still need to register in France as "working"? The university currently deposits my salary directly into a bank account that I will continue to use. We are moving to Lyon for my husband's work and will live there for 2-6 years.

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Unless you are officially on a "sabbatical" from the university, you are considered to be "working" in France if you are physically present in France while doing the work.

That said, you would hardly be the first person to telecommute "under the table" while trailing your spouse to France. Up to you to decide whether the risk involved is worth it. (You'll be filing US tax returns while you're living in France anyhow, and you'll no doubt want to claim the FEIE against your salary.) It may also depend a bit on how much pay is involved here. It could be possible to declare it to the French as a "mini-entreprise" possibly even without having to set up formally as an AE. If your husband's employer is paying for tax preparation, you should probably run it by the tax people in France.

If your husband is going over on a "scientific or research" visa, then your dependent visa will probably allow you to work. If he's going over on a regular work visa, chances are you won't be able to work as a "trailing spouse."
Cheers,
Bev