What is better to open - an individual entrepreneur or an LLC. Lending and administrative fines. What is the difference between an individual entrepreneur and an LLC, the difference between an individual entrepreneur and an LLC

Comparison criterion

1. Opening (creation) procedure

Complex (notarized application, state fee, minutes of the meeting of participants, etc.)

Simple (application and state fee)

2. Constituent documents

Charter (a complex document that requires special knowledge when drafting)

Not required

Required

Not required

4. Solutions

If there are several founders - accepted by a meeting of all participants

Accepted by the entrepreneur himself

5. Authorized capital

Needed (at least 10,000 rubles)

6. Responsibility

Determined by the size of the share in the authorized capital

Bears responsibility for its property even after liquidation

7. Use of proceeds

Distributed by the general meeting of participants

At your own discretion

8. Attracting investors

Loan agreements, simple partnership agreements and bills of exchange, sale of shares in the authorized capital and bonds

Loan agreements, simple partnership agreements and promissory notes

9. Joint conduct of activities

A maximum of 50 people can participate in one LLC

Association with other individual entrepreneurs on the basis of simple partnership agreements (joint activity agreements)

10. Restrictions on types of activities

There are practically no restrictions

Does not have the right to carry out certain types of licensed activities

11. Business expansion

Opening branches (subsidiaries) or merging with other companies

Increase in sales volumes

12. Selling a business

In any way using a notarial transaction (you can sell a share in the authorized capital)

By selling technology or trademark

13. Liquidation (closing) procedure

Takes from 4 to 6 months

Simple (required: application, state duty, certificate from the Pension Fund) within 5 days

Business form

IP

OOO

Decoding the concept

An individual registered in accordance with the procedure established by law and carrying out entrepreneurial activities without forming a legal entity.

A business company established by one or more legal entities and/or individuals, the authorized capital of which is divided into shares.

Registration procedure

Simple. You must provide the tax office with:

A copy of the individual's passport.

Application on form No. P21001.

No stamp required, bank account if possible.

Complicated: other documentation is submitted.

You need to provide the tax office with:

Foundation agreement (if there are 2 or more founders).

Minutes of the Meeting of Founders (if there are 2 or more founders) or the decision to establish a founder (if there is one founder).

Application for state registration. Form P11001.

Personal documents.

Receipt for payment of state duty.

A stamp and a bank account are also required!

Payment of state duty

The state tax is 800 rubles. The receipt is submitted along with all documents.

The fee is 4000 rubles.

Registration period

The same for both individual entrepreneurs and LLCs. Is 5 working days.

Authorized capital

The authorized capital is not paid.

It is necessary to deposit at least 10,000 rubles within 4 months after registering the LLC.

Legal address

Registration is carried out at the address of residence, permanent or temporary registration.

Registration is carried out at the legal address. It is necessary to indicate: rented or own premises, mass address or home address of the founder.

Number of owners

The owner can only be one individual.

There can be either one founder or several persons (up to 50).

Amount of workers

An individual entrepreneur can act independently, without involving employees.

After hiring the first employee, starting from January 1, 2017, you no longer need to register with the Pension Fund of Russia as an employer. An application for registration must be submitted to the Social Insurance Fund no later than 30 calendar days after hiring the first employee. Otherwise, the responsibilities of individual entrepreneurs and LLCs as employers are the same.

An LLC cannot operate on its own; at least there must be one employee who coordinates its activities - the director. This could be one of the owners or a third-party employee.

One founder, managing the company, must draw up an employment contract and pay himself a salary. Registration as an employer occurs automatically after registering an LLC.

Property liability and obligations

Responsible for obligations with all of his personal property, even after the closure of the individual entrepreneur. The only exception is property that cannot be recovered by law:

The only housing.

Clothing, shoes and home furnishings.

Food and money for a total amount not less than the established subsistence level.

Other things necessary for life.

Responsible for obligations only within the company's property. But founders, participants and managers may be held vicariously liable.

Upon closing, the LLC's obligations cease.

Exit from business

To exit the business, an individual will have to close the individual entrepreneur.

Leaving the LLC does not stop the company's activities.

Withdrawal of funds

Can freely dispose of the funds received, of course, subject to timely payment of taxes and contributions. There are no additional taxes when withdrawing money. Money is considered personal.

The money in the account is the property of the organization. Withdrawing funds from your current account may be more costly.

You can make a profit in only two ways: in the form of a salary (personal income tax 13% + contributions 30%) or as dividends (personal income tax 13%).

Activities

Individual entrepreneurs cannot engage in certain types of activities. The most common ones include:

Production and trade of alcohol (except beer).

Insurance services.

Banking activities.

Investment funds.

Activities of pawnshops.

Tour operator activities (in this case, you can provide the services of a travel agent).

Production of medicines.

Production of weapons, pyrotechnics, aviation equipment, etc.

There are no restrictions on types of activities.

Tax systems

You can use all existing tax regimes, including PSN.

You can use all tax regimes except PSN.

Taxes and payments

Insurance contributions are mandatory. Other taxes and payments depend on the availability of employees and the chosen taxation system.

There is no need to pay if there is no activity, there are no employees, and there is no property on the balance sheet.

In other cases, the amount of taxes and payments depends on the chosen taxation system and the number of employees.

Insurance premiums

Pays insurance contributions to the pension fund and the Federal Insurance Fund in the amount of 27,990 rubles (for 2017). Pays even in the absence of activity and regardless of income level.

In almost all tax regimes, an individual entrepreneur has the right to reduce the calculated tax by the entire amount of fixed payments paid, unlike an LLC, where it is allowed to use only up to 50% of the transferred insurance premiums.

The tax burden is greater. The founders pay 13% (since 2015) on their dividends (profits).

Insurance premiums even for one employee with the minimum wage will be approximately the same as for an individual entrepreneur.

Reporting

The volume of reporting is significantly less.

The volume of reporting is greater.

Accounting

Accounting is not required.

Individual entrepreneur under special taxation regimes – simplified tax system, UTII or patent

– submits one report for one tax.

It is necessary to maintain complete accounting records. Small LLCs have the right to rent in a simplified form.

If you have a lot of income/expenses, you will need to hire an accountant.

Other reporting depends on the chosen taxation system.

Cash discipline

Compliance with most cash discipline rules is optional.

All rules of cash discipline must be observed.

Small LLCs have the right not to set a cash balance limit.

Equipment acquisition and reporting

There is no need to account for the equipment in the business where it came from.

The management of the LLC must contribute all equipment to the authorized capital.

Liability and fines

There are fewer types of liability, and the fines are lower than for legal entities.

For example:

• The maximum administrative fine is RUB 50,000.

Another example:

• For non-compliance with the rules for using a cash register, the fine for individual entrepreneurs ranges from 3,000 to 4,000 rubles.

There are many more types of responsibility than an individual entrepreneur. Fines are significantly higher and are imposed not only on the organization itself, but also on its officials.

For example:

• The maximum administrative fine is 1 million rubles.

Another example:

• For failure to comply with the rules for using a cash register, the fine will be from 30,000 to 40,000 rubles.

Attracting investments

It is impossible to attract investments in their pure form. As a rule, you have to take out a loan, loan or leasing.

There may be problems with lending for large amounts.

You can find investors, but in return for the invested funds you will need to allocate a share in the LLC.

Attractive to investors. The prospect of expanding into a joint stock company and going public.

It is easier to get loans from banks for large amounts.

Cooperation

They cooperate with individual entrepreneurs in the same way as with legal entities.

They interact more willingly than with entrepreneurs.

There are situations in which organization is the only possible form of cooperation. For example, when participating in some government tenders.

Kudos

Many companies do not want to work with individual entrepreneurs, considering them less reliable and prestigious partners, and also because of problems with VAT.

No problem. The company's reputation is higher than that of the individual entrepreneur.

Opening of branches

You can work throughout the Russian Federation.

There is no need to register branches, but, as a rule, you have to report at your place of residence.

The right to the simplified tax system is not lost.

To work in another region, you have to open a separate division and register with the local Federal Tax Service.

The right to the simplified tax system is lost.

Sale of business, re-registration

An individual entrepreneur cannot be sold, donated, or transferred to another person. You can only close and reopen the business.

The LLC can be sold or the founders can be changed or re-registered.

Closing and liquidation

Liquidating an individual entrepreneur is easier, faster and cheaper.

Enough:

Write an application to the Federal Tax Service.

Pay a state fee of 160 rubles.

Closing an LLC is a complex process that can take up to 4 months. In addition, liquidation requires monetary costs.

Before starting a business, it is important to understand which organizational and legal form will be more profitable for the business. The scale of responsibility, a number of opportunities and responsibilities depend on the choice.

There is a common opinion that an individual entrepreneur is more suitable for starting a business, micro-business and self-employment, and an LLC for large-scale work and large financial turnover. But it is better to take into account all the conditions in which you will have to conduct your business.

Property liability

The individual entrepreneur is responsible for his financial obligations with all personal property, and liability for debts does not cease throughout his life, even after closure. If debts arise, claims will be made against almost all of the entrepreneur’s property. There is good news: there is a list of property that cannot be taken away from an individual entrepreneur for debts (for example, a single home or a plot of land). This list is given in paragraph 1 of Art. 446 Code of Civil Procedure of the Russian Federation.

LLC founders do not take such risks. They respond only with the amounts contributed to the authorized capital - and its size most often is no more than 10,000 rubles. But not everything is so simple: if the LLC cannot pay off its debts on its own, then bankruptcy proceedings begin. During it, the guilt of the founders in bankruptcy can be established, and then financial obligations can pass to the founders and participants of the LLC.

Registration of individual entrepreneurs and LLCs

Individual entrepreneur is registered for one participant. When opening an individual entrepreneur, only four documents are submitted to the Federal Tax Service: an application for registration, a passport, an INN (if any) and a receipt for payment of the state duty. The state duty is 800 rubles. A stamp and a current account are optional for individual entrepreneurs (the cost of printing is from 500 rubles, opening a current account is 1000 rubles).

An LLC can be registered for one person, as well as for a group of up to 50 people. The package of documents for an LLC is significantly larger than that of an individual entrepreneur, the state duty is 4,000 rubles, it is necessary to contribute the authorized capital of at least 10,000 rubles in the first four months after opening. Bank account and stamp are required.

Geography of business

Individual entrepreneur is registered at the place of residence. Suitable for permanent and temporary registration. An entrepreneur can conduct business throughout the country.

LLC registration is tied to the legal address of the head office. This means that the organization needs to purchase or rent non-residential premises. Often, LLC founders use the services of specialized companies and attach their office to a mass address, buy it from a business incubator, or register an office at the director’s place of residence. To work in other cities, you need to register new branches and representative offices.

Activity restrictions

An individual entrepreneur does not have the right to produce and trade alcohol (with the exception of beer), engage in insurance, open banks, pawn shops and investment funds. Cannot be a tour operator, produce and repair aviation and military equipment, produce medicines, poisons, ammunition, pyrotechnics.

There are no restrictions for LLCs.

Withdrawal of funds

The individual entrepreneur withdraws his personal income from the business whenever he wants, for any purpose, and does not pay additional tax on it.

The founders of the LLC pay 13% on dividends. Dividends can be withdrawn once a quarter; this must be reflected in the accounting and protocols of the LLC.

Contributions to the Pension Fund and Compulsory Medical Insurance

The individual entrepreneur pays contributions towards a future pension to the Pension Fund and contributions to compulsory health insurance. This happens even if the individual entrepreneur does not conduct business (there are exceptions to this rule: conscription into the army, caring for a baby, and a number of other cases). In 2016, the amount of contributions is 23,153.33 rubles + 1% on income over 300 thousand rubles. An individual entrepreneur can deduct the amount of contributions from the calculated tax; this happens in almost all tax regimes.

The LLC does not pay fixed contributions, but transfers insurance contributions to the funds from the director’s salary (about 30% of the salary). Even with the minimum wage, the volume of contributions is almost the same as for an individual entrepreneur. If the director lives without a salary, but only withdraws money in the form of dividends, the Federal Tax Service may show special interest in such LLCs. An organization can reduce the calculated tax by only 50% of the insurance premiums paid.

Tax rates

On the simplified tax system, UTII and unified agricultural tax, tax rates for LLCs and individual entrepreneurs do not differ. Individual entrepreneurs pay 13% income tax under the general taxation system. The patent system is also available to individual entrepreneurs. LLC under the general taxation system pays 20% income tax.

Taxes and payments for employees

Individual entrepreneurs and LLCs pay the same deductions for employees: they withhold 13% income tax from employees’ salaries, transfer insurance contributions to the Pension Fund, FFOMS and Social Insurance Fund - about 30% of the amount issued to the employee.

Tax reporting

Tax reporting is completely determined by the taxation system and does not depend on the organizational and legal form. Individual entrepreneurs and LLCs with the same tax regimes have almost the same reporting. There is a difference in OSNO, where LLCs report on income tax, and individual entrepreneurs report on income tax, and these are different forms of reporting.

Employee reporting

Reporting for employees does not differ between individual entrepreneurs and LLCs. But if an individual entrepreneur does not have employees and is not registered as an employer, then he may not submit reports at all, and the LLC is obliged to submit zeros.

Financial statements

Individual entrepreneurs do not submit financial statements.

LLCs are required to submit accounting reports. But organizations with up to 100 employees and revenue of less than 400 million rubles per year can draw up financial statements in a simplified form.

Cash discipline

Individual entrepreneurs and LLCs that use cash in their activities must comply with the rules of cash discipline. For individual entrepreneurs, these rules are much simpler than for LLCs.

Workers' rights

Employees of individual entrepreneurs and LLCs are equally protected by law; the obligations of employers are almost independent of the organizational and legal form. The difference lies in the details of registering as an employer:

• An individual entrepreneur is registered after hiring the first employee;
• The LLC is registered as an employer automatically from the very beginning, since it immediately has at least one employee - the general director.

Investments and loans

Individual entrepreneurs are less attractive to investors and lenders.

LLC investments and loans are more accessible. Additional obligations can be specified in the organization’s charter, as well as investors can be included among the co-founders. For banks, an LLC with its property often becomes a guarantee of loan repayment. After all, organizations are required to contribute equipment to the authorized capital, but individual entrepreneurs are not.

Liability and fines

The liability of an LLC is much broader than that of an individual entrepreneur. Fines for the same violations for LLCs are several times higher. In addition, officials of the organization may be held liable. Criminal liability for LLC managers is also much more serious than for individual entrepreneurs.

Closing procedure

Closing an individual entrepreneur is much easier and faster. To do this, you need to have no reporting debts (tax and employee) and pay a state fee of 160 rubles. Then a statement of termination of activity is written to the Federal Tax Service. IP cannot be sold or re-registered to another person.

The process of liquidating an LLC is more complicated. It is necessary to make a decision on liquidation and convene a liquidation commission headed by a chairman. Then the decision and application for liquidation are sent to the tax office. A notice of liquidation is published in the journal “Bulletin of State Registration”. Creditors are notified. An on-site inspection from the Federal Tax Service is possible. The interim liquidation balance sheet is submitted. A state duty of 800 rubles is paid. The final set of documents is submitted. The entire process takes at least four months. You can change the founders of the LLC or sell it, but for this the company must have a successful business history.

Now we see that you should choose between an individual entrepreneur or an LLC based on plans and conditions. Many entrepreneurs prefer not to make a choice and register individual entrepreneurs and LLCs at the same time in order to solve different business problems using suitable tools.

Kontur.Accounting is a comfortable online service for individual entrepreneurs and LLCs on the simplified tax system, OSNO and UTII. Get acquainted with the capabilities of the service for free for 14 days, keep records, calculate salaries, send reports and benefit from the support of our specialists.

Often the first steps into business are taken through entrepreneurship. A person who has accumulated some capital or has useful skills wants to seriously improve his financial situation by engaging in entrepreneurial activity. But, as a rule, at the first stage, there is not enough information about the methods and forms of conducting such activities.

This is where the question arises: what is the difference between an individual entrepreneur and a private entrepreneur? This article is intended specifically for readers who are interested in it.

Essence of the question

Entrepreneurial activity is not possible without registration. If an individual plans to engage in income-generating activities on a permanent basis, then he must be registered with the Unified State Register of Individual Entrepreneurs. This state register contains data on all citizens engaged in entrepreneurial activities. This registration is necessary because it allows you to correctly and fully collect taxes and fees established by law. Allows you to attract citizens engaged in entrepreneurial activities in an administrative manner on an equal basis with legal entities. Resolve legal disputes in the manner prescribed for other economic entities.

In fact, after registration in the state register, a citizen acquires the status of a subject of economic activity with all the ensuing consequences. And accordingly, to single him out from among the citizens who are not engaged in entrepreneurial activities, it was necessary to introduce special abbreviations: PE and PBOYUL.

What is: individual entrepreneur, private entrepreneur and private legal entity

As already mentioned, these abbreviations are used to separate citizens engaged in entrepreneurial activities from citizens engaged in labor activities and private practice. In practical terms, this is important, in particular, when executing transactions with the participation of such citizens and during their execution.

So, for example, if a person is an entrepreneur, then it will immediately be clear to his counterparty that this citizen-entrepreneur pays taxes for himself. And therefore, in this case, the party to the agreement with such an entrepreneur will not act as a tax agent.

At the same time, the abbreviation - individual entrepreneur, private enterprise or PBOYUL, before the surname and initials of one of the parties to the agreement, will tell the other party that in the event of any economic dispute with this person, the trial will take place not in a court of general jurisdiction, but in one of arbitration courts.

In addition to the use of these abbreviations in contracts, they are used on document forms, in advertising and always on signs in front of the entrance to the premises occupied by the entrepreneur to carry out business activities.

What is hidden under these letters? Let's look at it in detail.

PE is a private entrepreneur. Initially, the use of such a turnover was due to the fact that economic activities were carried out primarily by public sector enterprises. This was at the “dawn of market times.” Private enterprise by citizens was a relatively new phenomenon. To be more precise, such entrepreneurship existed before, but on an illegal basis. Its representatives were various kinds of “guild workers,” “farmers,” and so on. This activity was criminally punishable. Recognition of private entrepreneurs as legal business entities was one of the first steps towards a market economy.

PBOYUL - the term itself stands for simply: an entrepreneur without forming a legal entity. Here two types of legal activity are contrasted - with and without the formation of a legal entity. The first is understood when a citizen acts as a controlling participant (shareholder) of a legal entity, and thus, as it were, acts through it. In essence, a legal entity acts as an instrument for conducting business activities. This allows you to separate a citizen’s personal property from the property that is used to conduct business and thereby protect him from claims of creditors in case of unsuccessful business. Conducting activities without forming a legal entity does not provide such advantages. Which, in essence, is what this abbreviation reflects.

IP - if taken from a historical perspective, this term has ambiguity. Initially, individual entrepreneur was treated as an individual enterprise. This use has continued to this day in some CIS countries. In fact, where it is now used, and in Russia, when it was used for a short period of time, it meant one of the forms of a legal entity, characterized by one founder. But in the present time, in Russia they have moved away from this. Although, in everyday speech this interpretation is often found.

In modern Russia, individual entrepreneur stands for “individual entrepreneur.”

What is the difference between an individual entrepreneur and an LLC? Let's look at it together using the link:

PBOYUL and IP, what is the difference?

This question is often encountered not only among citizens who plan to start a business. Are you wondering what is the difference between an individual entrepreneur and a private legal entity? and employees (lawyers, accountants) of commercial organizations who have to deal with these abbreviations in contracts received from counterparties - individuals. It is no secret that entrepreneurs play a significant role in our economy, and accordingly, the number of contracts with them is growing all the time.

The difference between an individual entrepreneur and a private legal entity is insignificant. From the point of view of the legal status of individuals engaged in entrepreneurial activities, there are no such differences at all. As discussed earlier, all three terms were used to refer to the same phenomenon - a citizen engaged in entrepreneurial activity.

Among all the terms, emergency appeared earlier than all. Then the term PBOYUL became more common. Since this was relatively recent, it is still used today by many entrepreneurs in contracts and document forms. Therefore, to the question: PBOYUL or individual entrepreneur, which is correct? It’s worth answering what is correct in each case, but the more modern term is individual entrepreneur.

Having understood the question: how does an individual entrepreneur differ from a private entrepreneur and a private legal entity, it is worth saying a little about the correct use of these terms. Disputes about their use do not stop, but all of them are essentially groundless. The state has decided on the choice of the term that is used in regulating legal relations with the participation of citizens conducting business activities. This is an individual entrepreneur.

This in particular follows from the name of the main register, which is maintained by government agencies to record entrepreneurs - the Unified State Register of Individual Entrepreneurs. This term is clearly used in the Tax Code of the Russian Federation. But at the same time, individual entrepreneurs, private entrepreneurs, and private legal entities correctly reflect certain characteristic aspects of entrepreneurial activity. Therefore, it would be correct to talk about the incorrect use of these terms in everyday speech.

Having decided to open their own business, many, already at the stage of writing a business plan, begin to think about what form of activity to prefer.

What is the difference between an individual entrepreneur and an LLC? What is the advantage of an individual entrepreneur over society?

And in what cases should you choose the second method of management?

Why choose anything?

All these questions are not asked out of idle curiosity. The number and size of taxes, restrictions on activities, or, conversely, relief from the state depend on who you register as. Even at the registration stage, significant differences are noticeable both in the procedure and in payment.

What to choose: OJSC, LLC, CJSC, individual entrepreneur

Today in Russia it is possible to create limited liability companies, as well as joint stock companies (closed and open). This is if you are planning to conduct commercial activities, with non-profit partnerships everything is somewhat different. And it goes without saying that there are individual entrepreneurs. These are citizens who engage in business without the procedure of creating a legal entity.

But a limited liability company requires several participants and the presence of an authorized capital. Usually this is a very narrow circle of people, friends or relatives. Society is not called “limited” for nothing; it is very difficult to accept an outsider into it.

But a joint stock company, on the contrary, is built on the principle of attracting third-party investors. Shares can be purchased by anyone; they are freely traded on stock exchanges. And if we talk about differences, then the only question is the number of participants. Closed companies limit the number of shareholders, but open companies do not.

So, you can, based on your own goals and objectives, choose the necessary form: OJSC, LLC, CJSC, Individual Entrepreneur.

Please note that some types of activity provide exclusively for the creation of a company. Therefore, find out in advance whether you can limit yourself to registering an individual entrepreneur.

How much does it cost to become a sole proprietor?

When choosing the ideal formula for yourself, calculate the amount of initial capital. The price of opening an individual entrepreneur is much cheaper. But the creation of a society will result in additional costs.

What is needed to register an individual entrepreneur? It is necessary to pay a state fee of 800 rubles. This will close the money issue. Nobody requires you to have an authorized capital; you don’t need to order a seal. True, many advise still addressing this issue. Agree, you will be more trusted if you certify the papers with a seal.

Issue price for LLC

Those who decide to create a company will have to pay a state fee of 4 thousand rubles. Plus, you must have authorized capital in the bank. Its amount is also specified in regulatory documents. It should not be less than 10 thousand rubles.

Registration procedure for an individual entrepreneur

Registration for an individual is a simple procedure. You must write an application in the prescribed form. Then have it certified by a notary. In addition, you will need copies of personal documents, but not simple ones, but again notarized.

And you must have a receipt for payment of the state duty. All of these listed documents are required to register an individual entrepreneur. Having taken them in your hands, you go to the tax office, where you register. That's it, now you are an entrepreneur and can start your own business.

As mentioned above, you don't have to print. But if you are interested in cooperation with large network organizations, then it is better to order it. But you definitely don’t need to register anywhere.

Registering an LLC

Now about the registration of the company. What differs an individual entrepreneur from an LLC is the registration procedure.

Here you need to prepare the following documents:

• minutes of the founding meeting;
• an agreement confirming the establishment of an LLC;
• application for registration of the company;
• the charter of your society.

Whether you prepare the documents listed above yourself or trust an experienced lawyer is not important. It is important to have everything certified by a notary.

After that, you contact the tax office and that’s it – you become a member of the LLC. There may be several participants, or there may be one person (founder).

Responsibility

We have found out what is needed to register individual entrepreneurs and LLCs. Now let's find out the issues of liability of legal entities and individuals.

Let's start with the fact that fines for individual entrepreneurs are much lower. But if the company commits violations in its activities, then it will have to pay a considerable amount.

It is enough for an individual entrepreneur to keep strict records of all expenses and income. To simplify this procedure, you can purchase a special 1C program.

The company must have a legal address. What does it mean? You will not be registered at your place of registration. It is necessary to purchase or rent premises. Moreover, it is a non-residential premises. An apartment is not suitable in this case. Such restrictions do not apply to individual entrepreneurs. An entrepreneur is registered according to the address where he lives. But he can conduct his activities in another region.

An individual entrepreneur is deprived of anonymity. His name appears on the seal (if he orders one), and he signs all documents with his last name.

But it is not necessary to advertise information about the founders of the company. Sometimes it happens that the same person is a co-owner of several companies. The company's activities are carried out on behalf of the general director, who is elected by the founders.

If you are still thinking about whether to open an LLC or an individual entrepreneur, then it is worth finding out what you risk in case of unfavorable developments. The business may fail. And if a member of the company is responsible for debts only with his share, his personal property is not subject to sanctions, then the entrepreneur risks being left without an apartment and without a car. According to the court decision, he pays with all his property.

Who controls the proceeds?

There are also specific features in who manages the company’s income and how. Individual entrepreneurs have complete freedom in this matter. The entrepreneur has the right to dispose of the proceeds as he sees fit. No restrictions, no paperwork. It is only necessary to strictly monitor the timely payment of taxes (usually individual entrepreneurs have a simplified taxation system) and contributions. Even cash discipline bypasses individual entrepreneurs.

In an LLC, the founders receive dividends. They are paid quarterly, after funds for taxes and contributions have been transferred. Each member of the company is obliged to pay personal income tax on their dividends.

Another limitation is related to cash discipline. The founders cannot dispose of cash from the cash register at their own discretion.

About taxation

Now let's see how to find out your tax system. When registering, individual entrepreneurs and LLCs choose a system suitable for their type of activity. True, it often happens that in the future, especially if the company has not kept records for some time, the owner cannot remember what particular form of taxation he “subscribed” to. Of course, you can go to the tax office for clarification. But you can find out this issue yourself.

Today there are five systems in Russia:

• simplified system;
• patent;
• unified agricultural tax.

Everything is clear with the agricultural tax. It is paid by farms and peasant households. If you are not one of those, then the first four options remain for you.

Accounting is required for OSN. You pay value added tax, income tax and property tax. And this does not include mandatory contributions to various extra-budgetary funds. And even if you are an individual entrepreneur, but your income for the tax (reporting) period is more than 60 million, then you will have to apply the OSN.

Now about what the concept of a simplified taxation system includes. First of all, you get rid of the need to remit VAT and income tax. With property tax, the matter is more complicated, because there is information that from 2015, “simplified” people will also pay this tax.

The scheme is really simple. You need to pay a flat tax of 6 percent of your income.

The simplified taxation system can also be calculated using a more complex formula. This is when an entrepreneur wants to deduct his expenses from income. Then the rate can range from 5 to 15 percent. Why is there such a difference?

It all depends on the region and the refinancing rate established there. This method of calculation is applicable only in cases where you can confirm your expenses, and the expenses themselves are regular.

“Simplers” are not exempt from paying contributions to the Pension Fund and health insurance.

Individual entrepreneurs and LLC founders can submit an application to the tax office to switch to the simplified tax system. But the simplified taxation system does not apply to some types of activities. Therefore, check to see if you are subject to any restrictions.

In addition to the simplified tax system, entrepreneurs whose business is related to the provision of household services to the population, cargo or passenger transportation, trade in non-excise goods (but provided that the retail outlet is less than 150 square meters) can pay a single tax on imputed income. The UTII rate is calculated not from income, but from physical indicators. That is, the number of employees, seats in the car, vehicle fleet, and the size of the outlet are taken into account.

Is it possible to attract investors?

To develop a business, sooner or later additional financial investments will be needed. How does an individual entrepreneur differ from an LLC in this matter? The fact that an individual entrepreneur can only use a bank loan. But an LLC can attract investor money. The investor has his own interest - he enters the company as a shareholder, therefore, receives dividends. This approach is much more profitable than taking out a loan. The rates set by banks are not the most lenient, and you need to collect a rather large accompanying package of documents.

Closing a business

Not everything in life always goes according to plan. Sometimes a business has to close. Once again, the procedure for individual entrepreneurs is simpler.

You just need to write a statement to the tax office stating that you are ceasing your activities.

Then you will be checked for debts, and if none are found, you will have a certificate in your hands, which will confirm the fact of liquidation of your business.

With LLC everything is much more complicated. It is necessary to make a decision on liquidation at the meeting. Send it to the tax office. Information about the liquidation of your society should be published in the local press.

Notifications are then sent to creditors, if you have any by then.

The tax office must conduct an on-site audit and require the submission of the liquidation balance sheet. Only after passing through all stages can a society be considered closed.

So, we tried to figure out how an individual entrepreneur differs from an LLC. All you have to do is weigh the pros and cons, determining for yourself the most optimal form of management.

• Audience 2
• Audience 1
• Drugs
• Audience 4
• Folk remedies

spbtr.ru - Diseases, endocrinologists. MRI

Certificate of registration of mass media EL No. FS 77 - 57771 dated 04/18/2014.
Copyright © 2006-2017. All materials are protected by copyright
The media outlet "BusinessGarant" is registered by the Federal Service for Supervision of Communications, Information Technologies and Mass Communications