An individual entrepreneur is a legal entity or. Who is the IP? Pros and cons of IP

The abbreviation IP is well known today. However, the legal status of a sole proprietor is unclear to many people. Legislative acts contain the answer to the question formulated in the title of this article, but it is quite difficult to understand them without legal training.

A clear knowledge of the nuances of the status of an individual entrepreneur and its common features with a legal entity and an individual will help to understand the essence of the problem.

Who is the IP?

Almost anyone can engage in entrepreneurial activity. But for this, according to the requirements of legislative acts, it is necessary to confirm your own legal status. Commercial activities can be carried out by both legal entities and individuals. There is another category - individual entrepreneur. This is the only person, only he owns all the rights and earned profits.

There is no need for an office. The place of registration may be the place of residence of the entrepreneur.

If a person is not registered as an individual entrepreneur, but is engaged in commercial activities, then he is also considered an individual entrepreneur.

The confusion that causes a lot of annoying trouble with banks and tax inspectorates is caused by the fact that every “individualist” is given the opportunity to carry out activities that are also available to a legal entity. But it would be wrong to assume that the entrepreneur has the status of a legal entity. Because the Civil Code “postulates” that The activities of an individual entrepreneur occur without the formation of a legal entity.

This legal paradox often results in tax authorities making the same requirements. There is confusion in numerous types (forms) of reporting. As a result, complaints and long disputes arise. The situation is no better with banks, where individual entrepreneurs make appropriate payments. Often in practice it is necessary to look for loyal institutions whose employees have the necessary information regarding “individualists”.

Similar features to legal entities. and physical persons

What brings an individual entrepreneur closer to a legal entity?

In first place is financial discipline. Let's give a simple example. The citizen is registered as an individual entrepreneur. He rents out (sells) housing, receiving income as an individual. Two declarations must be submitted to the tax office:

• as a private person;
• as an entrepreneur (income received as a result of business activities is indicated).

The tax inspectorate and other regulatory authorities check individual entrepreneurs and legal entities. faces are almost the same. The individual entrepreneur has the right, if necessary, to attract hired workers. He can also make entries in their work books. This imposes the following obligations:

• conclusion of official employment contracts;
• payment;
• paying taxes for your employees.

Entrepreneurs have the right to choose a taxation system, which also brings them closer to a legal entity.

What does it have to do with an individual?

• Firstly, it is the use of income in your own way and at your own discretion, regardless of time.
• Secondly, it is the conduct of various business transactions, the conclusion of transactions and agreements in the manner of unity of command.

To learn about who an individual entrepreneur is, watch the following video:

Nuances of individual entrepreneur status

An individual entrepreneur is not required to have constituent documents. These requirements apply only to legal entities. The absence of a seal is conditional. There is a certain distrust of the entrepreneur’s signature, so he most often has to create one. Individual entrepreneurs have the right to make payments in cash. Although in practical reality such calculations are rare.

Official preparation of documents is rarely without mistakes, voluntary and involuntary. Such negligence is fined. The amount of fines for individual entrepreneurs is an order of magnitude lower than for legal entities. persons

If commercial activity is officially terminated, the individual entrepreneur status will still be retained. This means permanent. Even if there is no income, you will still have to pay contributions. This requirement does not apply to legal entities.

There are nuances regarding some products. For example, the sale of alcohol is permitted only to a legal entity.

Let's summarize. Our legislation is not without contradictory and controversial issues. Despite this, Individual entrepreneur is an individual. But its activities imply the adoption of regulations and requirements that apply to the activities of enterprises. Direct indications of exceptions to the rules for individual entrepreneurs should be taken into account.

An individual entrepreneur (IP) can be considered the starting point of a business. According to statistics, more than 80% of people who have their own business or enterprise today have gone through the individual entrepreneur stage. This status is considered one of the simplest for many factors, from registration to reporting. That is why he is chosen to start.

However, anyone who plans to become a businessman has a huge number of questions. They are interested in the legal side, the peculiarities of the status of an individual entrepreneur, its differences from an individual and a company such as an LLC.

Who is a sole proprietor?

The legislation says that an individual entrepreneur is “an individual registered in the manner prescribed by law and carrying out entrepreneurial activities without forming a legal entity.” If translated into accessible language, an individual entrepreneur is a special status of an ordinary adult and capable person, which gives the right to engage in permitted commercial activities.

The term replaced the abbreviations PBOYUL (entrepreneur without the formation of a legal entity) and PE (private entrepreneur), which were in effect previously. Today, individual entrepreneur is the only name denoting this status.

Is an individual entrepreneur a legal entity?

No is not. There is a widespread belief in everyday life that all structures engaged in business (or, in other words, permitted commercial activities) for the purpose of obtaining benefits are legal entities. Although logic dictates that a farmer who takes a couple of buckets of apples collected from his own garden to the market is clearly out of this category. Just like a shoemaker repairing shoes with his own hands in a small kiosk, the size of a doghouse.

That is, we understand that not only a legal entity, but also an individual can legally engage in business. It is the individual entrepreneur (special status) that gives him the opportunities and authority to conduct business.

This phenomenon is widespread - sole proprietorship in the USA, autonomo in Spain, sole trader in Australia - all these are foreign analogues of the Russian individual entrepreneur, allowing a person to conduct commercial activities in order to obtain benefits without creating a legal entity.

It is believed that an individual entrepreneur has a number of advantages, thanks to which he enjoys a high level of popularity in the business field. Although it is worth noting separately that an individual entrepreneur is not a legal entity, therefore there are a number of functions of a “company” that are not available to him.

Comparative table of individual entrepreneurs and legal entities

The first and main difference is that an individual entrepreneur is a natural person, while a legal entity implies the use of completely different organizational and legal forms.

Advice: if you ask yourself at the start what is better, an individual entrepreneur or an LLC (as an example of a simple legal entity), then understand one thing. To pose the question this way is to essentially compare sandals and winter boots. That is, both are shoes in which you can walk. However, these two types perform different functions and provide different capabilities. It's the same in business. Individual entrepreneurs and LLCs allow you to conduct commercial activities, but differ significantly in details. Therefore, before making a decision, carefully and thoroughly analyze which type of business entity is suitable for your purposes. At the same time, take into account not only the “immediate moment” or the coming months, but also the distant future, as well as options for the development of your project.

You can often find information on the Internet that individual entrepreneurs are preferable, especially at the beginning, that it is simpler. Let's try to understand the issue based on our realities. Actually, we are more concerned not about the differences in the application of various regulatory documents that regulate the activities of an individual entrepreneur or any legal entity (LLC, JSC), but about those practical features that will affect our business.

So, let’s compare individual entrepreneurs and LLCs (as the most common legal entity submitted as an alternative) with all their pros and cons. At the same time, several common myths will be debunked.

1. is extremely simple, but opening an LLC involves a lot of difficulties.

There is some truth in every statement. However, the facts indicate that:

• registration period is the same (5 days);
• the set of documents required to open an LLC is only three more pieces of paper, and, or rather, their templates are freely available;
• it is possible only if there is one participant, as well as when organizing an individual entrepreneur;
• the state duty for an LLC is higher (no one argues), in addition, you will need to contribute the authorized capital (there is a period of 4 months, as well as the opportunity to make this an equivalent - materials, equipment, goods), which is not required in the case of creating an individual entrepreneur;
• It is easier and much cheaper to close an individual entrepreneur, but claims can be brought against its former owner, who has not been an entrepreneur for “eleven” years, which is impossible after the liquidation of the legal entity.

Separately, it is worth mentioning the need for an LLC to have a legal address, which is not necessary for an individual entrepreneur. There are also a bunch of pitfalls here. A legal address can be obtained without much difficulty; it can even be a non-residential premises or a business center that rents out office storage rooms with an area of ​​6 square meters. And individual entrepreneurs have a strict connection to registration. That is, business in Tomsk for an Omsk resident will be complicated by the need for mandatory registration, submission of reports and payment of taxes in his native Omsk.

Important: There are no restrictions in the legislation on registering an LLC with a legal address at the place of residence (registration) of the founder, one of them or the general director. Tax authorities who refuse this act according to their own rules, which, in fact, violate the law.

1. The biggest “scare” for individual entrepreneurs and a plus for LLCs is property liability. In the first option - with all your property, in the second - only with what was contributed to the authorized capital.

And again, there is only a grain of truth here:

• Indeed, an individual entrepreneur is liable with all his property, even that received before the start of his activity. However, there is a list (clause 1 of Article 446 of the Code of Civil Procedure of the Russian Federation), which indicates the property of an individual entrepreneur, which is never collected for debts, for example, a single dwelling or a plot of land.
• For an LLC, which is liable only for part of the property it owns, this is a kind of bonus. That is, the personal property of the founders is, as it were, protected. And this is precisely what is considered a huge advantage of this format. Although if you delve deeper, it becomes clear that this is, to put it mildly, a fiction. If an LLC is declared bankrupt in court, the principle of subsidiary liability will come into force, where the founders will have to pay off debts with their own property.

Important: that is, the biggest advantage of an LLC (such protection of personal, unbearably acquired property) in the event of troubles for the company is not at all so reinforced concrete. And the individual entrepreneur has an inviolable minimum that allows him to at least stay in his pants, even without socks.

1. Money, reporting and taxes - for individual entrepreneurs, the withdrawal of the former is easier, the latter - less, and there are more benefits. As a rule, most of the privileges of individual entrepreneurs in tax and financial terms, when thoroughly studied, turn out to be either far-fetched or not so tempting. Same with reporting:
   • The content of employees for both organizational and legal forms is the same, and LLCs are almost identical.
   • In most tax regimes the rates are also identical. Differences exist in the general system (OSNO - 20% for LLC and 13% for individual entrepreneurs), as well as in the ability of individual entrepreneurs to apply the PSN (patent system).
   • Insurance is considered the main disadvantage of individual entrepreneurs. But these funds form health insurance and a future pension for the owner, that is, they are by no means useless expenses. And an LLC cannot do without payroll, even if its only employee (he is required) is the general director. And here, too, there will be contributions to all funds. The icing on the cake is that an individual entrepreneur has the right to reduce the accrued tax amount by 100% of fixed payments, an LLC - only by 50.
   • What is really attractive in terms of individual entrepreneurs is the withdrawal of earnings. There are no restrictions - take as much as you need, the main thing is that there is enough left for mandatory payments, the rest is at the owner’s disposal. An LLC has a number of restrictions; its owner(s) cannot easily withdraw a couple of million from their current account to buy a yacht. Here you will have to arrange everything correctly.
   • Individual entrepreneurs have much less paperwork, reporting is simpler, communication with the tax office is easier... The statement is not entirely true because reporting on employees is the same for individual entrepreneurs and LLCs, as well as tax returns. The type and complexity of the latter depends on the system used, and not on the legal form.

As a conclusion, saving on insurance premiums and taxes depends not so much on the format, but on certain conditions and the literacy of the accountant, as well as the ability to get funds at your own disposal.

Here you also need to take into account that tax liability for violations for individual entrepreneurs and LLCs in most cases is almost the same, which cannot be said about administrative and criminal ones. Much more lenient measures are applied to violators who are individual entrepreneurs, both in monetary terms and in punishments in accordance with the Criminal Code of the Russian Federation.

1. Prospects and opportunities for business development - on this issue everyone agrees that an LLC is more profitable. This format has a little more potential:
   • The first and main advantage is that LLCs have a much wider list of activities. It is unlikely that an entrepreneur will be able to include in the details of a contract for the sale of alcohol, as well as the production of it and medicines. An individual entrepreneur cannot engage in banking and insurance activities, be a tour operator, or holder of pawnshops and investment funds.
   • Another advantage of an LLC is that this format is more attractive to investors, that is, investors in a business project. Although competent management of one’s own business by an individual entrepreneur can interest many, from the immediate environment of an individual to a bank, and all of them can give money.
   • VAT and nuances. This point is maximally promoted in the discussion “for” and “against” IP. Although the VAT payer can be either an individual entrepreneur or an LLC, it all depends on the tax system applied. That is, cooperation with large companies that are “endesses” (as they say in certain circles) can be difficult for those who do not pay value added tax and are not registered as its payer.

Important: if you are planning to develop your business by attracting investments or are focused on working with large companies, then the success of these two areas will depend not so much on the chosen organizational and legal form, but on the taxation system. Moreover, it can be changed during operation.

For clarity, all information is combined into a short table:

To give preference to an LLC or an individual entrepreneur - this question must be answered comprehensively and taking into account all the nuances. But the familiar statements of Internet experts do not give the overall picture. Study the equipment before making a decision.

Frequently asked questions and a little more about what is rarely voiced:

• Question: Why do many people recommend starting an independent swim in the business world by registering the status of an individual entrepreneur, although from a comparison of an individual entrepreneur and an LLC as a business unit it is clear that the advantages of each of them are not so great?
• Answer: An individual entrepreneur can be closed at any time, this is easy to do, the procedure is much simpler than in the case of an LLC.
• Question: What is the main difference between individual entrepreneurs and other legal forms?
• Answer: Only the status of an individual entrepreneur allows an individual to engage in commercial activities. All other organizational and legal forms that participate in business processes require the creation of a legal entity.
• Question: Why not bring the business environment into uniformity by removing, for example, individual entrepreneurs and leaving only legal entities?
• Answer: The activities of individual entrepreneurs can be reduced to the simplest business processes. An individual entrepreneur can make all stages as easy as possible, from creation to liquidation. He has the right to choose the least complex taxation system, work without VAT, independently, without employees, and maintain simplified accounting. In addition, only an individual entrepreneur can apply the PSN, a special taxation system that provides for the acquisition of a patent.
• Question: Do individual entrepreneurs need a current account?
• Answer: Legally, no. An individual entrepreneur has the right to conduct commercial activities without opening and using a bank account.

Advice: if your line of work requires you to provide services or sell goods to private individuals, then it is worth considering that today a plastic card as a payment instrument is already much more popular than cash in your pocket. By opening a personal account, you can reach a larger number of potential buyers, improving the service for them.

• Question: Do you need an individual entrepreneur seal?
• Answer: At the legislative level, the mandatory seal is not fixed. This moment is left to the businessman himself. Although it adds a kind of weight to the written out documents.

And a little more about the details. In a professional environment (among tax specialists, financiers, lawyers) you can find such slang names as physicist and... no, not lyricist, but lawyer. The first are individual entrepreneurs, the second are all legal entities. In addition, in almost every service, from the tax service to various funds, as a rule, there is a division into departments. Some serve individual entrepreneurs, others serve legal entities.

Can an individual entrepreneur be converted into a legal entity?

Actually, the law does not provide for an algorithm for directly converting an individual entrepreneur into a legal entity. And in fact, this is not possible, because an individual entrepreneur has the status of an individual, although it is not a limiter on the rights and freedoms of a citizen. That is, an individual entrepreneur, as an ordinary person, can become a founder or co-founder of any legal entity (LLC, JSC).

However, the law does not oblige the registration of a legal entity to indicate this status in any of the documents. The founders (individual citizens) here act exclusively as individuals. The rule does not apply to founders who are legal entities.

Can an individual do business without registering as an individual entrepreneur?

Yes and no. It all depends on what a person understands by the term “business”. If, in his opinion, it consists of selling cucumbers grown on his personal plot or providing the services of a tutor, then that is one thing. If your plans are to open a permanent retail outlet or a shoe repair shop, then this is completely different.

In many cases, it can be several times larger than the amount required for registering an individual entrepreneur and fixed payments to funds.

Although there are a number of exceptions where an individual entrepreneur is not needed or optional:

• For the sale of agricultural products of a plant nature, grown on personal plots, summer cottages or in personal subsidiary plots. To do this, you only need a certificate from the administration of the gardening partnership or an extract from the business book. Relevant for 2018, starting next year they plan to change the rules of the game.
• For those who receive profit from transactions no more than twice a year, and the amount of turnover on them (indicated in the documents confirming payments) does not exceed 200 thousand rubles.
• Those who work under civil contracts and declare their income do not have to become an individual entrepreneur. The list of permitted ones includes any agreements of the specified nature for the provision of services, contracts, purchase and sale, royalties and a number of others. They (agreements) can be one-time or oriented for a long period. The main thing in these cases is to report your income and pay taxes due as an individual.
• For those who carefully engage in dropshipping.
• Those who perform intermediary functions.

The last two points have a lot of similar points that nullify all the charms of business beyond forms and statuses:

• you need to look for partners, suppliers and buyers who will agree to a certain scheme, where the intermediary (dropshipper) does not participate as a unit in the chain of documents;
• since such systems do not imply the responsibility of an intermediary or dropshipper, you need to be absolutely confident in the quality of the product, the ability of suppliers or sellers to resolve conflict situations with clients;
• a person working under such schemes without an individual entrepreneur or legal entity is always dependent on his partners, their methods of doing business, as well as on how they will make payments.

As a result, in most situations, agency or intermediary due to all the costs of paying taxes may turn out to be less than when using an individual entrepreneur for the same transactions. Also, if you help someone with housework, work as a nurse, or sell your crafts or knitted hats via the Internet, then you absolutely do not need the status of an individual entrepreneur.

Let's sum it up

• individual entrepreneur (IP) – a special status of an individual that gives him the opportunity to engage in commercial activities and does not limit other declared rights (for example, the same person can become a member of an LLC);
• they show justified interest in individual entrepreneurs both at the start of entrepreneurial activity and in the future, this status has diversity in the possibilities for applying the taxation system, allocation of VAT, simplified accounting and the like;
• the ease of closing an individual entrepreneur is a kind of bonus for those who are not confident in their business endeavors;
• Individual entrepreneurs have many advantages for mini-projects that are designed for small profits, turnover and deadlines.

Registering an individual entrepreneur or LLC is your choice. The main thing is that the idea that was born and promises profit does not remain dead. Do it! Although this will not become a grandiose multi-million dollar project, it will bring joy from small results and confidence in the future.

Individual entrepreneur (IP)(obsolete private entrepreneur (PE), PBOYUL until 2005) is an individual registered as an entrepreneur without forming a legal entity, but in fact possessing many of the rights of legal entities. The rules of the civil code regulating the activities of legal entities apply to individual entrepreneurs, except in cases where separate articles of laws or legal acts are prescribed for entrepreneurs.()

Due to some legal restrictions (it is impossible to appoint full-fledged directors to branches in the first place), an individual entrepreneur is almost always a micro-business or small business.

according to the Code of Administrative Offenses

Fine from 500 to 2000 rubles

In case of gross violations or when working without a license - up to 8,000 rubles. And, it is possible to suspend activities for up to 90 days.

From RUB 0.9 million for three years, and the amount of arrears exceeds 10 percent of the tax payable;

From 2.7 million rubles.

Fine from 100 thousand to 300 thousand rubles. or in the amount of the culprit’s salary for 1-2 years;

Forced labor for up to 2 years);

Arrest for up to 6 months;

Imprisonment for up to 1 year

If the individual entrepreneur fully pays the amounts of arrears (taxes) and penalties, as well as the amount of the fine, then he is exempt from criminal prosecution (but only if this is his first such charge) (Article 198, paragraph 3 of the Criminal Code)

Evasion of taxes (fees) on an especially large scale (Article 198, paragraph 2. (b) of the Criminal Code)

From 4.5 million rubles. for three years, and the amount of arrears exceeds 20 percent of the tax payable;

From 30.5 million rubles.

Fine from 200 thousand to 500 thousand rubles. or in the amount of the culprit’s salary for 1.5-3 years;

Forced labor for up to 3 years;

Imprisonment for up to 3 years

Fine

If the amounts for criminal prosecution are not reached, then there will only be a fine.

Non-payment or incomplete payment of taxes (fees)
1. Non-payment or incomplete payment of tax (fee) amounts as a result of understatement of the tax base, other incorrect calculation of tax (fee) or other unlawful actions (inaction) shall entail the collection of a fine in the amount of 20 percent of the unpaid amount of tax (fee).
3. The acts provided for in paragraph 1 of this article, committed intentionally, entail a fine in the amount of 40 percent of the unpaid amount of tax (fee). (Article 122 of the Tax Code)

Penalty

If you were just late in payment (but did not provide false information), then there will be penalties.

The penalties for everyone are the same (1/300 multiplied by the key rate of the Central Bank per day of the amount of non-payment) and now amount to about 10% per annum (which is not very much in my opinion, taking into account the fact that banks give loans for at least 17-20 %). You can count them.

Licenses

Some types of activities an individual entrepreneur can only engage in after receiving a license, or permissions. Licensed activities of individual entrepreneurs include: pharmaceutical, private investigation, transportation of goods and passengers by rail, sea, air, as well as others.

An individual entrepreneur cannot engage in closed types of activities. These types of activities include the development and/or sale of military products, trafficking in narcotic drugs, poisons, etc. Since 2006, the production and sale of alcoholic beverages has also been prohibited. An individual entrepreneur cannot engage in: production of alcohol, wholesale and retail trade in alcohol (with the exception of beer and beer-containing products); insurance (i.e. be an insurer); activities of banks, investment funds, non-state pension funds and pawnshops; tour operator activities (travel agency is possible); production and repair of aviation and military equipment, ammunition, pyrotechnics; production of medicines (sales possible) and some others.

Differences from legal entities

• The state fee for registering individual entrepreneurs is 5 times less. In general, the registration procedure is much simpler and fewer documents are required.
• An individual entrepreneur does not require a charter and authorized capital, but he is liable for his obligations with all his property.
• An entrepreneur is not an organization. It is impossible for an individual entrepreneur to appoint a full and responsible director.
• Individual entrepreneurs do not have cash discipline and can manage the funds in the account as they please. Also, the entrepreneur makes business decisions without recording them. This does not apply to working with cash registers and BSO.
• An individual entrepreneur registers a business only in his own name, in contrast to legal entities, where registration of two or more founders is possible. Individual entrepreneurship cannot be sold or re-registered.
• A hired employee of an individual entrepreneur has fewer rights than a hired employee of an organization. And although the Labor Code equates organizations and entrepreneurs in almost all respects, there are still exceptions. For example, when an organization is liquidated, the mercenary is required to pay compensation. When closing an individual entrepreneur, such an obligation exists only if it is specified in the employment contract.

Appointment of director

It is legally impossible to appoint a director in an individual entrepreneur. The individual entrepreneur will always be the main manager. However, you can issue a power of attorney to conclude transactions (clause 1 of Article 182 of the Civil Code of the Russian Federation). Since July 1, 2014, it has been legislatively established for individual entrepreneurs to transfer the right to sign an invoice to third parties. Declarations could always be submitted through representatives.

All this, however, does not make the people to whom certain powers are delegated directors. A large legislative framework on rights and responsibilities has been developed for directors of organizations. In the case of an individual entrepreneur, one way or another, he himself is responsible under the contract, and with all his property he himself is responsible for any other actions of third parties by proxy. Therefore, issuing such powers of attorney is risky.

Registration

State registration of an individual entrepreneur carried out by the Federal Tax Service of the Russian Federation. The entrepreneur is registered with the district tax office at the place of registration, in Moscow - MI Federal Tax Service of the Russian Federation No. 46 for Moscow.

Individual entrepreneurs can be

• adult, capable citizens of the Russian Federation
• minor citizens of the Russian Federation (from 16 years of age, with the consent of parents, guardians; married; a court or guardianship authority has made a decision on legal capacity)
• foreign citizens living in the Russian Federation

OKVED codes for individual entrepreneurs are the same as for legal entities

Necessary documents for registration of an individual entrepreneur:

• Application for state registration of an individual entrepreneur (1 copy). Sheet B of form P21001 must be filled out by the tax office and given to you.
• A copy of the Taxpayer Identification Number.
• A copy of your passport with registration on one page.
• Receipt for payment of the state fee for registration of an individual entrepreneur (800 rubles).
• Application for switching to the simplified tax system (If you need to switch).

An application for registration of individual entrepreneurs and other documents can be prepared online in a free service.

Within 5 days you will be registered as an individual entrepreneur or you will receive a refusal.

You must be given the following documents:

1) Certificate of state registration of an individual as an individual entrepreneur (OGRN IP)

2) Extract from the Unified State Register of Individual Entrepreneurs (USRIP)

After registration

After registering an individual entrepreneur It is necessary to register with the pension fund and the Compulsory Medical Insurance Fund and obtain statistics codes.

Also necessary, but optional for an entrepreneur, is opening a current account, making a seal, registering a cash register, and registering with Rospotrebnadzor.

Taxes

Individual entrepreneur pays a fixed payment to the pension fund for the year, 2019 - 36,238 rubles + 1% of income over 300,000 rubles, 2018 - 32,385 rubles + 1% of income over 300,000 rubles. The fixed contribution is paid regardless of income, even if the income is zero. To calculate the amount, use the IP fixed payment calculator. There are also KBK and calculation details.

An individual entrepreneur can apply tax schemes: simplified tax system (simplified), UTII (imputed tax) or PSN (patent). The first three are called special modes and are used in 90% of cases, because they are preferential and simpler. The transition to any regime occurs voluntarily, upon application; if you do not write applications, then OSNO (general taxation system) will remain by default.

Taxation of an individual entrepreneur almost the same as for legal entities, but instead of income tax, personal income tax is paid (under OSNO). Another difference is that only entrepreneurs can use PSN. Also, individual entrepreneurs do not pay 13% on personal profits in the form of dividends.

An entrepreneur has never been obliged to keep accounting records (chart of accounts, etc.) and submit financial statements (this only includes a balance sheet and a financial performance statement). This does not exclude the obligation to keep tax records: declarations of the simplified tax system, 3-NDFL, UTII, KUDIR, etc.

An application for the simplified tax system and other documents can be prepared online in a free service.

Inexpensive programs for individual entrepreneurs include those with the ability to submit reports via the Internet. 500 rubles/month. Its main advantage is ease of use and automation of all processes.

Help

Credit

It is more difficult for an individual entrepreneur to get a loan from a bank than for a legal entity. Many banks also give mortgages with difficulty or require guarantors.

• An individual entrepreneur does not keep accounting records and it is more difficult for him to prove his financial solvency. Yes, there is tax accounting, but profit is not allocated there. Patent and UTII are especially opaque in this matter; these systems do not even record income. The simplified tax system “Income” is also unclear, because it is not clear how many expenses there are. The simplified tax system "Income-Expenditures", Unified Agricultural Tax and OSNO most clearly reflect the real state of the individual entrepreneur's business (there is an accounting of income and expenses), but unfortunately these systems are used less frequently.
• The individual entrepreneur himself (as opposed to the organization) cannot act as collateral in the bank. After all, he is an individual. The property of an individual can be collateral, but this is legally more complicated than collateral from an organization.
• An entrepreneur is one person - a person. When issuing a loan, the bank must take into account that this person can get sick, leave, die, get tired and decide to live in the country, giving up everything, etc. And if in an organization you can change the director and founders with the click of a finger, then in this case an individual entrepreneur can just close it and terminate the loan agreement or go to court. IP cannot be re-registered.

If a business loan is denied, then you can try to take out a consumer loan as an individual, without even disclosing your plans to spend money. Personal loans usually have high rates, but not always. Especially if the client can provide collateral or has a salary card with this bank.

Subsidy and support

In our country, hundreds of foundations (state and not only) provide consultations, subsidies, and preferential loans for individual entrepreneurs. Different regions have different programs and help centers (you need to search). .

Rice. Number of individual entrepreneurs per 10,000 population

Experience

Pension experience

If the entrepreneur pays everything regularly to the Pension Fund, then the pension period runs from the moment of state registration until the closure of the individual entrepreneur, regardless of income.

Pension

According to current legislation, an individual entrepreneur will receive a minimum pension, regardless of how many contributions to the Pension Fund he pays.

The country is undergoing almost continuous pension reform and therefore it is not possible to accurately determine the size of the pension.

Since 2016, if a pensioner has the status of an individual entrepreneur, then his pension will not be indexed.

Insurance experience

The insurance period for the Social Insurance Fund only applies if the entrepreneur voluntarily pays contributions to the social insurance (FSS).

Difference from employees

The Labor Code does not apply to the individual entrepreneur himself. It is accepted only for hired workers. An individual entrepreneur, unlike a director, is not a mercenary.

Theoretically, an individual entrepreneur can hire himself, set a salary and make an entry in the work book. In this case, he will have all the rights of an employee. But it is not recommended to do this, because... then you will have to pay all salary taxes.

Only a female entrepreneur can receive maternity leave and only under the condition of voluntary social insurance. .

Any businessman, regardless of gender, can receive an allowance of up to one and a half. Either in RUSZN or in the FSS.

Individual entrepreneurs are not entitled to leave. Because he has no concept of working time or rest time and the production calendar also does not apply to him.

Sick leave is granted only to those who voluntarily insure themselves with the Social Insurance Fund. The calculation is based on the minimum wage, the amount is insignificant, so in social insurance it makes sense only for mothers on maternity leave.

Closing

Liquidation of an individual entrepreneur is an incorrect term. An entrepreneur cannot be liquidated without violating the Criminal Code.

Closing an individual entrepreneur occurs in the following cases:

• in connection with the adoption of a decision by an individual entrepreneur to terminate activities;
• in connection with the death of a person registered as an individual entrepreneur;
• by court decision: forcibly
• in connection with the entry into force of a court verdict of deprivation of the right to engage in entrepreneurial activity;
• in connection with the cancellation of a document (overdue) confirming the right of this person to reside in Russia;
• in connection with a court decision to declare an individual entrepreneur insolvent (bankrupt).

Databases on all individual entrepreneurs

Website Contour.Focus

Partially free Contour.Focus The most convenient search. Just enter any number, last name, title. Only here you can find out OKPO and even accounting information. Some information is hidden.

Extract from the Unified State Register of Individual Entrepreneurs on the Federal Tax Service website

For free Federal Tax Service database Unified State Register of Individual Entrepreneurs (OGRNIP, OKVED, Pension Fund number, etc.). Search by: OGRNIP/TIN or full name and region of residence (patronymic name does not have to be entered).

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Question answer

Is it possible to register using temporary registration?

Registration is carried out at the address of permanent residence. To what is indicated in the passport. But you can send documents by mail. According to the law, it is possible to register an individual entrepreneur at the address of temporary registration at the place of stay, ONLY if there is no permanent registration in the passport (provided that it is more than six months old). You can conduct business in any city in the Russian Federation, regardless of the place of registration.

Can an individual entrepreneur register himself for work and make an entry in his employment record?

An entrepreneur is not considered an employee and does not make an entry in his employment record. Theoretically, he can apply for a job himself, but this is his personal decision. Then he must conclude an employment contract with himself, make an entry in the work book and pay deductions as for an employee. This is unprofitable and makes no sense.

Can an individual entrepreneur have a name?

An entrepreneur can choose any name for free that does not directly conflict with the registered one - for example, Adidas, Sberbank, etc. The documents and the sign on the door should still have the full name of the individual entrepreneur. He can also register the name (register a trademark): this costs more than 30 thousand rubles.

Is it possible to work?

Can. Moreover, you don’t have to tell them at work that you have your own business. This does not affect taxes and fees in any way. Taxes and fees to the Pension Fund must be paid - both as an individual entrepreneur and as a mercenary, in full.

Is it possible to register two individual entrepreneurs?

An individual entrepreneur is just the status of an individual. It is impossible to simultaneously become an individual entrepreneur twice (to obtain this status if you already have it). There is always one TIN.

What are the benefits?

There are no benefits in entrepreneurship for people with disabilities and other benefit categories.

Some commercial organizations also offer their own discounts and promotions. Online accounting Elba for newly created individual entrepreneurs is now free for the first year.

The Civil Code of the Russian Federation and other legislative acts provide a clear definition of the concepts of a legal entity and an individual entrepreneur. They have their own characteristics.

Key Similarities and Differences

To understand the difference between the concepts of an individual entrepreneur and a legal entity, you need to understand legal essence of these definitions.

Under IP means an individual who carries out his activities independently and on his own behalf, as well as duly registered.

Entity is an organization that has separate property and is independently responsible for its obligations.

These two concepts are united only by the fact that both conduct business activities, but in the registration procedure, structure, taxation and other legal aspects they are different.

Individual entrepreneurs are registered under their full name and place of residence, and a legal entity also has a legal address, which is indicated during the registration process.

The main difference between an individual entrepreneur and a legal entity is that the latter has the Constituent Documents or Charter, within the framework of which it carries out its activities. Any changes must be made without fail. Individual entrepreneurs, on the other hand, have a more free form of business, changing which does not require a procedure for revising the Charter.

The disadvantages of the business system of an individual entrepreneur compared to a legal entity include:

• limited types of activities (license), for example, the first cannot engage in both retail and wholesale sales of alcoholic beverages, medicines, etc.;
• The personal participation of an individual is required; no one has the right to represent the interests of an individual entrepreneur.

The status of a legal entity presupposes the presence of an executive body that is actually involved in the management and activities of the organization. And the individual entrepreneur is managed by the individual who created it.

The address (place) of a legal entity is recognized as legal address specified in registration documents(often occurs when the specified address does not coincide with the real location of the company). Registration of the location of an individual entrepreneur is carried out at the place of residence of the individual or at the place of his stay.

Reorganization of an individual entrepreneur’s business compared to a legal entity also has a number of preferential benefits. To change the required data, you must provide an application and a document (a copy thereof) confirming the change.

Rights of a legal entity

Any participant in legal relations has a set of rights and obligations. Legal entities have civil rights that correspond to the goals of their activities. This set of rights is spelled out in the Charter Document. Legal capacity can only be limited by law.

Status of an individual

An individual is a citizen who has the corresponding rights and responsibilities. He acquires them from the moment of birth and uses them all his life. One of these rights is, after which the laws regarding the activities of an individual entrepreneur, as well as any others relating to individuals separately, are applied to the citizen.

Why is there confusion in terms?

Firstly, from the definition of an individual entrepreneur it is already clear that this is an individual who is responsible for his obligations independently. That is, everything is entrusted to a certain person, which cannot be said about a legal entity, where the company bears all responsibility. The confusion occurs due to the fact that an individual entrepreneur has the same attributes as a legal entity, namely, a seal, a current account, etc.

Cases when an individual entrepreneur acts as a legal entity

Despite the obvious differences between the two concepts, there are options in which the actions of an individual entrepreneur are similar to a legal entity. Such cases include:

1. Hiring workers.
2. Opening bank accounts and using them for business purposes.
3. Using a seal to authenticate documents.

Advantages and disadvantages

The advantage of an LLC is that none of the founders bears the full responsibility liability for the company's obligations. For example, compensation for losses is determined in the amount of the share contributed by the founder to the authorized fund of the company.

If an LLC is declared bankrupt, foreclosure on debt obligations is applied only to the property contributed by the founder to the company's fund.

Individual entrepreneur as a person directly conducting business, fully liable for all debts, formed during the working period. In this case, debt collections are applied to all property owned by the individual entrepreneur, with the exception of property that is not subject to seizure and recourse to repay the debt.

In addition to all of the above, an individual has the right to bequeath all of his property to another person.

In daily activities, individual entrepreneurs and LLCs can use various tax regimes. First of all, this is a general taxation system, which is mainly used by enterprises due to the large turnover. Also, individual entrepreneurs use other special tax regimes: simplified, imputed, patent.

Any of the above systems implies taxation on profits received as a result of business activities.

In addition, companies are required to pay other additional taxes and fees depending on the type of activity. Among them are:

• gambling tax;
• tax related to excisable goods;
• fee for the use of subsoil;
• fee for the use of objects of flora and fauna, etc.

Enterprises pay additional taxes and insurance premiums on employee salaries.

Tax withheld from an employee's salary is income tax. For citizens of the Russian Federation the rate is 13%, for foreigners - 30%.

Insurance premiums are divided into the following types:

• pension fund (PFR);
• compulsory health insurance fund (FMS);
• Social Insurance Fund (SIF).

The contribution rate is 22%, 5.1% and 2.9% respectively.

An individual, when using the general taxation system, pays:

• tax on income from business activities;
• property tax if it is used in business;
• value added tax.

Also, an individual pays other mandatory contributions: health insurance, pension fund, insurance fund.

The legislative framework

At the legislative level, registration is regulated by the Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs”, the Civil Code, decrees of the Government of the Russian Federation, and other legal acts.

Learn more about LLCs and individual entrepreneurs in this video.

When starting a business, everyone is faced with the question: what organizational and legal form of business to choose. The main options relate to the choice between an individual entrepreneur and a legal entity (most often an LLC).

Let's consider the pros and cons of doing business as an individual entrepreneur (IP) and in the form of a legal entity.

Advantages of operating as an individual entrepreneur:

1. Individual entrepreneurs in comparison with legal entities bear lower tax burden and this factor is often decisive when choosing a form of business registration in favor of an individual entrepreneur. Nobody wants to pay more contributions to the state than would be possible with a certain economic approach. A lower level of taxes allows you to carry out activities more efficiently at the initial stage, reach the break-even point earlier and recoup the project.
2. A simpler and less expensive procedure for registering an individual entrepreneur. Already at the stage of paying the state duty, the difference is 3,200 rubles, not to mention other features. In particular, for an individual entrepreneur it is not necessary to pay for the authorized capital (for an LLC, the minimum is 10,000 rubles), since the individual entrepreneur does not form it. To register a legal entity, a more significant package of documents is submitted, for the preparation of which it is difficult to do without a lawyer (it is necessary to draw up charter YUL, founder's decision etc.), and this is another costly item. To register a legal entity, it is necessary to have a legal address, namely to rent an office or other non-residential premises. And for an individual entrepreneur, his legal entity. the address will be the place of his registration.
3. Legal entities are required to keep accounting and tax records in full, but individual entrepreneurs are not. Individual entrepreneurs do not submit financial statements(balance sheet, profit and loss statement, etc.), they only fill out the Individual Entrepreneur’s Income and Expense Book and submit declarations/calculations for the relevant taxes/contributions.
4. Individual entrepreneurs create much more in their work process less documentation, including local acts that are mandatory for legal entities.
5. The level of responsibility of an individual entrepreneur is lower than that of a legal entity. A number of administrative sanctions for individual entrepreneurs are set at a lower level than for legal entities

Disadvantages of doing business as an individual entrepreneur:

1. According to their obligations, individual entrepreneurs are liable with all their property, and for legal entities the scope of liability is limited by the size of the authorized capital.
2. It is believed that the activities of an individual entrepreneur, not a legal entity less prestigious. Citizens are more willing to work for a company than for an individual entrepreneur. Legal entities have a more serious approach to registration, maintenance and storage of labor files. Problems with the appointment of a director. For a legal entity, the powers of the director are specified in the charter, but for an individual entrepreneur the very wording director of an individual entrepreneur is incorrect.
3. Opportunity difficulties in contacting counterparties. The form of doing business in the form of a legal entity inspires more confidence among business partners than an individual entrepreneur.
4. IP cannot be reorganized into a legal entity
5. The individual entrepreneur does not have a company name like a legal entity.
6. IP cannot open branches and representative offices