When it is profitable with us. Comparison of civil rights and obligations of IP and LLC

) directly on our website. With their help, you will be able to draw up a package of documents that meets all the requirements for filling out and the legislation of the Russian Federation.

What is better to open a sole proprietorship or LLC?

This is a question that most new entrepreneurs have. Making the right choice in such a situation is very important, since the registration procedure, further payment of taxes and other related factors will depend on this decision.

The importance of the choice of organizational and legal form should not be overestimated. The most important thing is to start your own business, and its form is essentially just an agreement with the state, on the terms of which you agree to conduct business.

Property liability of individual entrepreneurs and LLC

There are many articles published on the Internet on the topic: What is the difference between a sole proprietorship and an LLC or What is the difference between Sole Proprietorship and LLC. Almost in each of them, the main difference is the fact that the individual entrepreneur is responsible for his activities with personal property.

At the same time, the founders and participants of the LLC are not liable for the obligations of the company, but only risk the funds contributed to the authorized capital (which usually amounts to only 10,000 rubles). This is partly true:

Firstly with regard to LLC. When it is created, there are two types of responsibility:

1. Responsibility as a legal entity.
2. Responsibility of founders and participants as individuals.

When people talk about limited liability, they usually mean the first kind. Indeed, an LLC, as a legal entity, is liable for its obligations only to the extent of its property.

However, if, for example, an LLC cannot repay its debts on its own, then in the bankruptcy process, these obligations can be assigned to its founders and participants (subsidiary liability).

Secondly with regard to IP. All his property is not divided into personal and that which he uses in business. Therefore, in the event of debt obligations, claims will apply even to the property that was received before the start of business.

However, it should be noted that there is a list of property that cannot be recovered from an individual entrepreneur (for example, his only housing or land plot). The full list is listed in paragraph 1 of Art. 446 Code of Civil Procedure of the Russian Federation.

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The procedure for registering sole proprietorship and LLC

Here we will look at the main differences between sole proprietorship and LLC at the opening stage:

• You can register an LLC for one or several persons (up to 50), unlike an individual entrepreneur, where only one individual is the owner.
• To open an individual entrepreneur, you need to submit only 3 documents to the tax office: an application for registration, a receipt for payment of state duty and a copy of your passport. For an LLC, the package of documents is 2 times larger.
• The state duty for individual entrepreneurs is 800 rubles, and for LLC - 4,000 rubles.
• Within 4 months after the registration of the LLC, it is necessary to contribute the authorized capital in the amount of at least 10,000 rubles. IP does not need to do this.
• The registration period for sole proprietorship and LLC is the same - 5 working days.

Legal address of IP and LLC

To register an LLC, you first need to find a legal address. The future organization has 3 options for obtaining an address:

1. Buy or rent non-residential premises(office, warehouse, etc.). This option, from the point of view of the law, is considered the most preferable location of the organization. However, it is quite expensive and therefore, in practice, not all founders can afford it.
2. Seek help from a specialized company(bulk address). This method will cost much less than, for example, renting an entire premises, however, the choice of a specialized company must be taken very carefully, because if it is on the black list of the Federal Tax Service, then you may be denied registration of an LLC. Instead of using the services of a commercial company, it may be more reliable to purchase an address in a territorial business support center (for example, a business incubator).
3. Use the home address of the founder or CEO(it is not necessary to be the owner, registration is enough). This method completely eliminates the cost of a legal address. note that despite the fact that the registration of an LLC at a home address is not prohibited by law, some tax inspectorates may refuse to register.

As for IP. An individual as an individual entrepreneur must be registered with the tax office at his place of residence. Therefore, even if an entrepreneur lives and works in one city, but is registered in another, he will have to personally go to his city and submit documents for registration (or issue a notarized power of attorney to his representative).

At the same time, individual entrepreneurs are allowed to conduct their activities in any region of Russia without opening additional branches. However, the entrepreneur still needs to pay taxes and submit reports at the place of residence (with the exception of UTII and PSN, on which tax is paid and reports are submitted at the place of business).

What is more profitable in 2019 - IP or LLC?

Asking this question, future entrepreneurs are primarily interested in which form of business (IP or LLC) is more profitable in terms of paying taxes And other payments.

Let's consider the most important points:

IP insurance premiums

Individual entrepreneurs, regardless of the availability of employees and the chosen taxation system, are required to transfer insurance premiums for compulsory medical and pension insurance for “themselves”.

Note: until 2018, the amount of these contributions changed annually, depending on the size of the minimum wage, but since 2018, the amount of fixed contributions is no longer tied to the minimum wage, its exact amount is established in Art. 430 of the Tax Code of the Russian Federation (in 2019, the total amount of fixed contributions is 36 238 rubles).

Fixed payments are commonly referred to as the most main disadvantage of IP in comparison with LLC, however, if you figure it out, it turns out that this is not such a big minus:

• Firstly, IP insurance premiums are not business taxes, but deductions for future pensions and health insurance.
• Secondly, even if there is only one participant (general director) in the LLC, he still needs to pay a salary, from which insurance premiums are also transferred (even with the very minimum wage, the amount of contributions will turn out to be approximately the same as that of an individual entrepreneur).
• Third, in almost all tax regimes, an individual entrepreneur has the right to reduce the calculated tax by all sum paid fixed payments, in contrast to LLC, where only up to 50% of the listed insurance premiums are allowed to be used.

Taxes depending on the taxation system

As for the payment of taxes themselves, their size depends entirely on the chosen tax regime, and not on the applicable organizational and legal form.

As of 2019, there are 5 tax regimes in Russia:

1. General system of taxation (OSNO).
2. Simplified taxation system (USN).
3. Single tax on imputed income (UTII).
4. Single agricultural tax (ESKhN).
5. Patent taxation system (PSN).

On the USN, UTII and ESHN tax rates for individual entrepreneurs and LLCs the same. The only difference is provided by the general system, where the income tax for organizations is equal to 20% , and the income tax for individual entrepreneurs is 13% . Only individual entrepreneurs have the right to use the patent system.

Taxes and payments for employees

Taxes and payments for employees for individual entrepreneurs and LLCs the same.

All employers, regardless of whether it is an individual entrepreneur or LLC, are required to withhold personal income tax (income tax) from income paid to their employees, as well as transfer insurance premiums for mandatory pension, medical and social insurance.

Income tax is withheld at the time of salary payment and amounts to 13% (virtually for all payments to employees). The amount of insurance premiums depends on the type of tariffs applied (in general, 30% of the amount issued to the employee is transferred to the funds).

Learn more about taxes and payments for employees.

Restrictions on types of activity for individual entrepreneurs and LLCs

Individual entrepreneurs cannot engage in certain types of activities.

The most common of these include:

• Production and sale of alcohol (excluding beer).
• Insurance services.
• Banking.
• Investment funds.
• pawnshop activities.
• Tour operator activity (at the same time it is possible to provide services of a travel agent).
• Production of medicines.

There are no restrictions for organizations, therefore, by registering an LLC, you can engage in absolutely any type of activity.

Taking money out of business

The main goal of entrepreneurial activity is to make a profit. However, in order to freely dispose of the earned funds, they must first be taken out of business.

For IP no such problem exists. All the money that he earns is considered his own and therefore he can at any time pick it up from the cash register or withdraw it from the current account.

The amounts that an individual entrepreneur can spend on his personal needs are not limited (the main thing is to avoid tax arrears and insurance premiums). You do not need to pay any additional taxes when withdrawing money.

Regarding OOO the situation is somewhat different. Everything that an organization earns is its property. Therefore, even if there is only one founder in an LLC, he still does not have the right to dispose of the organization's money at his own discretion.

LLC founders can withdraw earned money in the following ways:

1. Dividend payment.
2. Calculation and payment of salaries.
3. Conclusion of a loan agreement.
4. Execution of an agreement with IP.
5. Fictitious contract with another company.

The payment of dividends is a safe and legal procedure, which is expressly provided for the purpose of distributing the income received by the company.

Dividends are paid out of the company's net profit, which remains after payment of all necessary taxes and fees. You can distribute LLC income quarterly, every six months or at the end of the year. The frequency of payments is prescribed in the company's charter. The best option is at the end of the year.

Income tax must be withheld from wages 13% and transfer insurance premiums to off-budget funds (usually about 30%). Personal income tax is also withheld from dividends in the amount of 13% (until 2015 it was equal to 9%).

Example. Calculation of profit for individual entrepreneurs and LLC

LLC "Company" with one founder and IP Petrov I.A. without employees apply STS Income (6%).

Let's say that in 2019 each of them received an income of 950,000 rubles, but there were no expenses. The calculated amount of USN tax in this case will be the same: 57,000 rubles. (950,000 rubles x 6%).

The individual entrepreneur paid "for himself" insurance premiums in the amount of 36,238 rubles. By law, he has the right to reduce the amount of tax by 100% of the contributions paid. Therefore, he will pay the USN tax for 2019 in the amount of: 20,762 rubles. (57,000 rubles - 36,238 rubles).

IP net profit in this case is equal to: 893 000 rub. (950,000 rubles - 57,000 rubles).

The founder of the LLC set himself, as the general director, the minimum possible salary (minimum wage) of 7,500 rubles and paid insurance premiums from it in the amount of: 27,000 rubles. (7,500 rubles x 12 months x 30%). By law, he has the right to reduce the amount of tax, but not more than 50%. In this case, the USN tax for 2019 will be equal to: 30,000 rubles. (57,000 rubles - 27,000 rubles).

Note: in our example, the amount of contributions turned out to be less than 50% of the calculated tax, therefore, when it was reduced, the amount of contributions was used in full.

Additionally, personal income tax was withheld from the salary at a rate of 13% in the amount of: 11,700 rubles. (7,500 rubles x 12 months x 13%). Thus, the general director received clean hands: 78,300 rubles. (90,000 rubles - 9,678.24 rubles).

Calculation of dividends: 950 000 rub. - 90,000 rubles. (salary) - 57,000 rubles. (STS tax + insurance premiums) = 803,000 rubles. Dividends are additionally subject to tax at a rate of 13%, which is equal to: 104,390 rubles.

Income from dividends amounted to: 698,610 rubles.

Net profit of the CEO in this case is equal to: 788 610 rub. (698,610 rubles + 90,000 rubles).

Thus, ceteris paribus, the net profit of IP turned out to be more by 104 390 rubles.

Reporting of IP and LLC

I would like to highlight only a few key points:

• Tax reporting (declarations and KUDiR) depends on the taxation system, and not on the form of doing business.
• Reporting for employees for individual entrepreneurs and LLCs is the same (at the same time, if an individual entrepreneur does not have employees, then there is no need to submit reports).
• Individual entrepreneurs are not required to keep accounting records and submit financial statements. At the same time, small organizations (the number of employees is not more than 100 people and the revenue is not more than 400 million rubles per year) have the right to issue accounting records in a simplified form.
• Individual entrepreneurs and LLCs that use cash in their activities are required to comply with the rules of cash discipline (it is worth noting that these rules are much simpler for individual entrepreneurs than for LLC).

Wage-earners

There is an opinion that employees who work for individual entrepreneurs have much fewer rights than employees of organizations. In fact, this is not so. The obligations of employers practically do not depend on the form of doing business.

An individual entrepreneur, as well as an LLC, must register employees in full accordance with the Labor Code (conclude employment contracts, make entries in work books, pay vacation and sick leave, transfer all necessary payments to extra-budgetary funds, etc.).

Since the organization already has at least one employee (general director) from the very beginning, it is automatically registered immediately after registration.

Since January 1, 2017, the declarative procedure for registration has been canceled for employers-individual entrepreneurs. Registration and deregistration in the FIU can be carried out on the basis of the information contained in the Unified State Register of Legal Entities, Unified State Register of Legal Entities and Unified State Register of Real Estate, and it is not at all necessary to submit additional documents (letter dated January 31, 2017 No. BS-4-11 / 1628@).

Attracting investments

In terms of attracting investments, an LLC looks more preferable than an individual entrepreneur. With the help of additional cash, the organization can expand its business and reach a completely new level in terms of profit.

However, do not forget that investing is not charity. In return for the investment, new members may demand a significant stake in your organization. Therefore, before contacting investors, it is better to think things through first.

In principle, an individual entrepreneur can also raise additional funds, but, as a rule, this ends not with investments, but with a banal loan, leasing or credit. It is quite difficult to get money on the word of honor, since it is almost impossible to prove to the investor that someone else took part in the development of the IP business.

Therefore, if you plan to do business not alone, or in the future legally decide to increase the number of participants and attract investments, then LLC will be the most preferable form of business for you.

Prestige and reputation

There is a misconception that other companies are less willing to cooperate with individual entrepreneurs than with LLCs. Actually it is not. In most cases, customers, customers, suppliers, etc. It doesn't matter what form of business you use. The most important thing for them is the clear fulfillment of contractual obligations.

The only thing I would like to note is cooperation with organizations and individual entrepreneurs that apply the general tax regime. Since they are VAT payers, they try to do business with entrepreneurs on the DOS. But this already refers more to the difference between taxation systems than to the differences between individual entrepreneurs and LLCs.

The procedure for closing a sole proprietorship and liquidating an LLC

Closing an IP is much easier and faster than liquidating an LLC. To do this, it is enough just to pay a state duty in the amount of 160 rubles and submit an application for termination of activities to the Federal Tax Service Inspectorate.

In turn, for liquidation of LLC necessary:

• Make a decision on liquidation, create a liquidation commission and appoint its chairman.
• Submit the adopted decision and application for liquidation in the form P15001 to the Federal Tax Service Inspectorate.
• Publish a notice of liquidation in the State Registration Bulletin.
• Notify creditors of liquidation.
• To prepare for possible on-site inspection from the IFTS.
• Submit an interim liquidation balance sheet (submitted no earlier than 2 months after publication in "Vestnik").
• Pay the state duty for the liquidation of the LLC in the amount of 800 rubles.
• Submit the final set of documents (liquidation balance sheet, application form P16001, receipt for payment of state duty, etc.).

As we can see, it is quite difficult and time-consuming to liquidate an LLC on your own (at best, the closing procedure lasts at least 4 months). Alternatively, an organization (unlike an individual entrepreneur) can be sold or its founders changed, but for this it must have a good entrepreneurial history.

Liability and fines

When registering an LLC, it is necessary to understand that a legal entity has much more responsibility than an individual entrepreneur (for example, for non-compliance with the rules for using a cash register, a fine for an individual entrepreneur is from 3,000 to 4,000 rubles, and for an LLC - from 30,000 to 40,000 rubles)

As you can see for yourself, for administrative offenses, the penalties for LLCs are several times greater than the monetary sanctions for individual entrepreneurs. In addition, according to the Code of Administrative Offenses, not only the organization itself, but also its officials (head, chief accountant) can be held liable.

Criminal liability for heads of organizations is also more serious than for individual entrepreneurs. This is due to the fact that a number of articles in the Criminal Code are dedicated specifically to legal entities.

As for tax liability, in most cases it is the same for individual entrepreneurs and LLCs (this happens due to the fact that in tax legislation, instead of indicating a specific organizational and legal form, the term is most often used "taxpayer").

Advantages and disadvantages of IP and LLC

The table below shows all the main differences between IP and LLC:

Table 1. Pros and cons of individual entrepreneurs and LLCs in 2019

What is better to open: LLC or IP? Having decided to throw off the shackles of office slavery and no longer work "for your uncle", developing your own business, you should know that it must be legal from a legal point of view. That is, you need to register with the Federal Tax Service. And for this, first of all, you should decide which of these two options is more suitable.

Definition

To understand what is the difference between an LLC and an individual entrepreneur, and which of these two forms of doing business is better, you should first look into the Civil Code of the Russian Federation and read their definitions.

An individual entrepreneur is an individual who has been registered in the manner prescribed by law as an individual entrepreneur

LLC - a business company or association established by one or more persons, with an authorized capital divided into shares.

This means that by registering as a self-employed person, you are confirming that the entire business is wholly owned by you. If it is planned that several persons will manage the company or firm, it is more profitable to register an LLC - this form ensures the protection of the interests of each of the founders.

Documents required for registration

The difference between an LLC and an individual entrepreneur also lies in what documents are required to register a business. In order to start working as a sole proprietor, you need:

• application for registration, completed in form 12001;
• application for USN (if necessary);
• receipt for payment of state duty.

To register an LLC, you will need more documents:

• application for registration, drawn up in the form 11001;
• protocol or decision on the formation of an LLC;
• charter in 2 copies;
• a receipt confirming the payment of the state duty;
• application for USN (if necessary).

In some cases, in order to register a new legal entity LLC, you will need to supplement the main package of documents with an establishment agreement (if there are several founders), as well as papers relating to the legal address (a certified copy of a certificate of ownership or a letter of guarantee from the owner).

The amount of the state duty

Trying to understand what is better to open - an LLC or an individual entrepreneur, you, among other things, should pay attention to the fact that the size of the state duty for registering different forms of business will also be different.

In accordance with paragraph 1 of the 1st part of article 333.33 of the Tax Code of the Russian Federation, the creation of an LLC is subject to a duty of 4 thousand rubles. The same document determines the required contribution for those who plan to work as an individual entrepreneur - in this case, the cost will be much lower, only 800 rubles.

Responsibility

Of course, the difference between an individual entrepreneur and an LLC is closely tied to liability for obligations. So, individual entrepreneurs are liable with all the property that belongs to them, with the exception of that to which the penalty cannot be extended by law (Article 24 of the Civil Code of the Russian Federation). But the participants of the LLC bear only the risk of losses associated with the activities of the organization, within the framework of their shares in the authorized capital. At the same time, they are not responsible for personal property.

Administrative responsibility

What is better to open: LLC or IP? In studying this issue, one should carefully consider issues related to administrative responsibility. If any offense was committed by an individual entrepreneur, then, in accordance with the laws of the Code of Administrative Offenses of the Russian Federation, they are liable as officials. At the same time, the measures imposed on LLCs in such cases (for example, fines) are much higher than those applied to officials. That is, individual entrepreneurs brought to administrative responsibility, as a result, suffer much smaller losses.

Registration address

Individual entrepreneurs are registered at the place of residence, at the address of permanent registration, which is indicated in the passport. LLC - at the place where the sole executive body of the organization is located. In fact, in the second case, you will have to rent or buy a legal address, which will entail additional costs.

Features of taxation and withdrawal of funds from accounts

In terms of withdrawing money from a current account, doing business in the form of an individual entrepreneur is certainly a more convenient option. You can contact the bank at any time to receive funds in cash. In this case, your expenses will be limited by the amount of tax - 6% or 15% (if a simplified taxation scheme is used).

As for the LLC, the withdrawal of cash from accounts is rather problematic, and without appropriate justification, it is completely impossible. One of the possible ways is to pay dividends to a member of the organization, which are additionally taxed at a rate of 9% (personal income tax). In addition, as for individual entrepreneurs, it will be necessary to pay the amount of tax in the amount of 6 (if applicable for an LLC) or 15% (for the simplified tax system).

liquidation

Whatever one may say, this question should still be divided into two parts - official and unofficial. From a legal point of view, liquidation of an LLC requires about 3-4 months of time and up to 30-40 thousand rubles for various expenses. The liquidation of an individual entrepreneur requires much less financial expenses (on average, about 5,000 rubles) and time (up to 2 weeks). There are no problems at all with the unofficial closure of an IP, but in the case of an LLC, you will need additional expenses (depending on the appetites of the organization, the amount can reach 30-50 thousand rubles). It’s worth mentioning right away that it will not work to subsequently convert an IP into an LLC: you will have to create a new legal entity.

Attracting investments

The difference between an individual entrepreneur and an LLC can also be seen in how easy it is to find investors for a business of one form or another. Practice shows that it is extremely difficult for an individual entrepreneur to do this, because he does not have and, in fact, he acts on his own. The situation is complicated by the fact that the entire business belongs to a citizen, and therefore investing cannot guarantee anything to the investor.

In the case of an LLC, everything is much simpler. After all, at least a guarantee of the investor's interests can be his inclusion in the list of participants in the organization by buying out a share in the authorized capital.

Reputation and image

Here, IP again loses somewhat. Even despite the fact that with this form of business you are responsible with all your property, the status of an LLC in the eyes of partners and counterparties is valued much higher, and therefore many companies prefer to cooperate with such organizations.

Summing up

In order to simplify your choice, we will combine the pros and cons of individual entrepreneurs and LLCs into one table.

What is better to open: LLC or IP? In fact, it all depends on the situation and the scale of the future business. If you plan to work on a grand scale, cooperate with a huge number of companies and organizations, open branches and expand, attract new investors, then, of course, it is more profitable to open a full-fledged legal entity.

However, it is worth remembering that with all the costs of registration, if you change your mind at some point or something does not work out, you will remain in the red, and the closing process can take more than one month. The advantages of IP allow you to do this much faster and without serious expenses.

09Mar

Hello! In this article we will talk about what is better to open: an individual entrepreneur or an LLC in 2018.

Today you will learn:

1. Advantages and disadvantages in opening an individual entrepreneur and LLC;
2. What form of ownership is suitable for;
3. Is it possible to open an individual entrepreneur if an LLC is already open.

IP or LLC - table of differences

The decision to start your own business will lead to the question of what form of ownership to resort to. It is important to make the right choice, because not only what documents need to be prepared, but also the provision of tax reporting depends on it.

IP is a form of ownership in which business is carried out by one person.

OOO - This is a form of ownership in which business is carried out by one or more participants - founders. It can include up to 50 persons, and each of them can influence the management of the enterprise.

However, the differences are not only this. Below is a comparative table that shows how the presented forms of ownership differ.

As can be seen from the table, the difference is significant. You need to be thoughtful about how you set up your business. If an individual entrepreneur is easier to open, then an LLC provides an opportunity to develop.

In order to understand what is more profitable to open an individual entrepreneur or LLC, you need to decide on the purpose of creating a business. If, for example, you want to grow and want to attract investments, then you need to open an LLC. If you do not have enough money, and you are not yet ready to use it for business development, then in this case an individual entrepreneur will be the best option.

The system by which entrepreneurs and organizations are taxed is the same. However, LLCs are required to keep accounting records and cash documents strictly in accordance with the established procedure.

What is the property liability of LLC and IP

In the course of carrying out their activities, entrepreneurs and organizations may incur debts. They will have to answer for debt obligations in accordance with the law.

An individual entrepreneur is obliged to satisfy all legal requirements presented to him, and is liable with his property. In this case, it does not matter at all whether it was purchased before the start of the activity or after.

However, the Code of Civil Procedure of the Russian Federation contains Article No. 446, which states that despite the fact that the property of an entrepreneur is not divided into personal, and that which was used in the work. There is a list of things that cannot be seized. For example, housing, land, etc. If an entrepreneur owns several apartments, then, naturally, encumbrances may be imposed on them.

Members of a legal entity are not liable for the obligations of the company they created. They only risk losing their money, paid on account of the authorized capital.

You should remember that when organizing an LLC, liability arises, which has the following types:

• The first is the responsibility of the enterprise itself;
• The second is the responsibility of the participants.

If an enterprise can pay off its debts with its property, then no requirements will be presented to the founders. If the organization, in the case of, for example, forced, is not able to repay the debt, then the claims for damages will fall on the shoulders of the founders. In this case, subsidiary liability arises, and compensation can be recovered in court.

Differences in the registration of LLC and IP

The differences in the registration procedure are as follows:

1. The head and owner of the IP is the only person - this is himself, while the registration of an LLC can be carried out both for one participant and for several. It all depends on the number of founders. Recall that there can be up to 50 people;
2. The second difference is the number of documents submitted to the tax authority. For individual entrepreneurs, it is enough to provide an application, a receipt for payment of the state duty, and a copy of an identity document. To register an enterprise, a package of documents is required twice as much, which is supplemented by a charter, decision, etc.;
3. As for the payment of state duty, when registering an LLC, it will be about 4,000 rubles, for an individual entrepreneur - 800 rubles;
4. The founders of an LLC are required to contribute to the authorized capital of the enterprise an amount of at least 10,000 rubles, no later than 4 months from the date of registration.

The registration period for individual entrepreneurs and LLCs is the same, it is at least 5 working days.

What are the activity restrictions?

Individual entrepreneurs are prohibited by law from engaging in certain types of activities:

• An entrepreneur cannot produce and sell alcoholic products, with the exception of beer;
• Carry out insurance activities;
• Carry out banking activities;
• Open investment funds;
• Provide pawnshop services;
• Produce medicines;
• Be a travel operator.

As for the LLC, these rules do not apply to organizations and they have the right to carry out any type of activity that does not contradict the law.

How IP and LLC use money

The goal of any business is to make a profit. In order to freely dispose of the money due, you should withdraw them correctly.

For individual entrepreneurs, there are no restrictions on the use of monetary amounts. All funds kept at the cash desk or on current accounts are your property, and you can withdraw them without restrictions.

There is no additional tax to be paid. You should remember that in the course of business you should not allow the formation of arrears in payment of insurance premiums or taxes. Otherwise, the tax authorities may send an order to the banks to seize the current account, and you will not be able to withdraw money until the debt is fully repaid. In addition, you will have to pay penalties.

All funds at the disposal of the LLC are the property of the organization. Even if you are the sole founder of the enterprise, you still do not have the right to manage the company's money based on your personal desires.

LLC founders can withdraw money in the following ways:

1. Pay dividends to participants;
2. Payment of wages;
3. By concluding a loan agreement;
4. Draw up an agreement with the IP.

Withdrawing money from the company's turnover is an absolutely legal procedure. You should remember that the payment of dividends must be made from profits left after paying taxes. Participants of the enterprise distribute income at their own discretion, unless it is prescribed in the company's charter.

The presence of the legal address of LLC and IP

Any organization cannot exist without a legal address, so when creating an LLC, you should take care of this in advance.

There are three ways to resolve this issue:

1. Buy property or draw up a lease agreement. The premises can be both in the form of an office and in the form of a warehouse. This method is the most expensive, so not all entrepreneurs use it;
2. Take advantage of the services of companies that provide opening LLC "mass addresses". However, caution must be exercised here. If, during an inspection by the Federal Tax Service, it is revealed that such a company is on the black list, then you will be denied registration.
3. Register the address of the organization in the center for entrepreneurship support. This method will save you from all kinds of expenses for the acquisition of premises.

The use of the propiska of the founder in the form of the legal address of the LLC is not prohibited by law, however, the Federal Tax Service authorities do not approve of this fact and may refuse to register the enterprise.

An individual entrepreneur is obliged to register at his place of residence. The specified data will become its legal address.

If, for example, an individual entrepreneur is registered in one city, but lives and works in another, then he should apply for registration with the Federal Tax Service of his city. At the same time, the legislation does not prohibit him from conducting his business throughout Russia without opening branches.

You should also clarify in advance which taxes you need to pay at the place of registration of the IP, and which at the place of business.

Fixed IP contributions

According to the law, entrepreneurs, regardless, are required to transfer amounts to the Pension Fund both for themselves and for their employees. This amount has no specific value, it changes every year. For example, in 2018, insurance premiums amount to 32,385 rubles.

Many entrepreneurs believe that a fixed payment is a disadvantage of IP, but in fact it is not:

• First, this money is not a tax. This amount is spent on the formation of a future pension and on health insurance;
• Secondly, insurance premiums are paid from the wages of both individual entrepreneurs and LLC participants;
• Thirdly, unlike an LLC, an individual entrepreneur has the right to reduce the amount of paid taxes exactly as much as he paid insurance premiums.

Are there any differences in the taxation of IP and LLC

The amount of taxes paid for both individual entrepreneurs and LLCs depends entirely on the tax regime in which they operate.

There are 5 modes:

1. – general system of taxation;
2. - a simplified view of the taxation system;
3. - tax on imputed income;
4. – agricultural tax;
5. - the tax is paid according to the patent, it can only be used by individual entrepreneurs.

For many types of these regimes, there are the same rates for individual entrepreneurs and LLCs. The difference may lie in the payment of income tax. For individual entrepreneurs, income tax is 13%, for LLC - 20%.

With regard to taxes for employees, the payments for both forms of ownership will be the same, and are mandatory. Personal income tax and insurance premiums are paid from the income of employees. Income tax is subject to withholding at the time of issuance of wages, and is 13%.

Reporting

The reporting that LLCs and individual entrepreneurs are required to provide to the tax service does not depend on the form of ownership, but on the taxation system under which the enterprise operates.

As for the personnel of the company, LLC and IP provide the same package of documentation for them. Accounting reporting is obligatory only for LLC. You should take into account the fact that when using cash registers, there are certain rules by which entrepreneurs report. For IP it is much easier.

The possibility of hiring employees

Both individual entrepreneurs and LLCs have the opportunity to attract hired workers. Regardless of where the employee works, for an individual entrepreneur or in an organization, his rights will be the same. According to the law, every employer is obliged to create normal working conditions and take into account the rights of employees.

Employers are still obliged to formalize the employee, by concluding with him and paying the due compensation. You should also remember that you need to pay insurance premiums to the FIU and other funds.

Does reputation depend on the form of doing business?

The opinion that it is more prestigious to work with an LLC is erroneous. In fact, your partner absolutely does not care in what form you conduct business. The most important criterion by which you earn your reputation is the clear fulfillment of contractual obligations.

How IP and LLC are closed

Much easier than LLC. All that an entrepreneur needs is to bring an application to the Federal Tax Service for liquidation and pay the state duty.

For you need:

• Call a general meeting of members of the organization;
• Make a decision on liquidation;
• Select a responsible person;
• Collect a package of documents for the tax office, and they need to be prepared in strict accordance with the requirements of the law;
• Publish an article about liquidation in print media;
• notify creditors;
• Pay fees and more.

On average, the procedure for closing an LLC takes a period of 4 months, provided that no violations have been identified in the activities of the enterprise.

Liability and fines

Undoubtedly, the responsibility for the violations committed by the organization is much higher than that of the individual entrepreneur. The fines that the company will pay will be 10 times higher than those of the entrepreneur.

However, not only the enterprise itself, but also its founders can be held liable. As for criminal liability, the leaders of the organization can be punished much more severely than individual entrepreneurs. The Criminal Code of the Russian Federation contains many articles on the illegal activities of the management of organizations.

The Tax Code of the Russian Federation provides for both LLC and individual entrepreneurs, if they commit violations, the same penalties.

What form of ownership is convenient for trading

To know what is best for trading as an individual entrepreneur or LLC, you need to decide on the scope of your activity. If the business involves small volumes of trade, then IP is best suited. The creation of an LLC is most acceptable, for example, for opening a pawnshop.

For example, if you want to open a hairdressing salon, then IP is best suited. And if in the future your plans include selling cosmetics or opening a beauty salon, then for services of this kind you will need to open an LLC. You should also not forget that health services, such as a solarium, for example, do not fit the UTII reporting.

Is it possible to open an individual entrepreneur if an LLC is open

Legislation provides for the possibility in which two forms of doing business can exist. At the same time, it is required to comply with the rule according to which an individual entrepreneur cannot be the head of an LLC. In this case, the registration authorities may suspect you of fraud and invalidate the IP registration.

In order not to arouse suspicion among the inspection authorities, an individual entrepreneur can conclude an employment contract with an LLC and act as an employee.

The main mistake of an LLC is that when an entrepreneur is appointed to a managerial position, they try to save money and do not pay taxes on his behalf, referring to the fact that the employee received remuneration in the form of wages. In the future, such disputes are resolved in court. It is important to remember that when creating an IP, tax reporting is mandatory.

Do not also forget that when appointing a director, information about a hired individual entrepreneur must be entered in. Based on this, the tax authorities may conduct additional checks to identify underpayment of taxes.

Another legitimate way of doing business is to conclude various agreements between individual entrepreneurs and LLCs. The main condition is that transactions concluded between them should not arouse suspicion on the part of the tax service. Otherwise, you will need to prepare for constant visits in order to identify violations of the law.

The legislation of the Russian Federation prohibits the conduct of dual business. In which income from LLC is transferred to income in IP.

The founder of an LLC, who has decided, has the right to open an IP. The main thing to consider in such a situation is that the business run by an individual entrepreneur must be transparent, and its income should not overlap with the income of an LLC.

Each of the forms of ownership must exist independently, submit the necessary reports, and pay different taxes.

You should also keep in mind that the responsibilities you will have as sole proprietorship and LLC will be different. Failure to comply with the law may result in criminal liability.

One of the most crucial moments in the life of any entrepreneur is starting a business. Therefore, all novice businessmen should consciously approach the issue of choosing the legal type of their organization: register as or. For small organizations, these types of registration are considered the best option.

Advantages and disadvantages of IP

The main advantageous aspects in opening an IP today are the following:

• ease of registration (without legal support and with a minimum package of documents);
• reporting is minimal;
• the cost of registration is low (in 2016, the state duty costs 800 rubles);
• cash management according to a simplified scheme;
• property tax (for the property of the enterprise) is absent;
• accounting simplified ();
• taxation under the patent system;
• few tax audits;
• minimal taxes and low rates;
• fines for any violations are small;
• decisions regarding the activities of the enterprise, the head makes himself;
• The liquidation process is simple.

MinusesIP:

• attraction of investments for the development of the enterprise is excluded;
• debt liability remains after;
• The pension fund needs to pay contributions even if there is no profit;
• the general taxation system provides for the need to pay income tax without taking into account losses for the past years;
• management of the enterprise is carried out only by the individual entrepreneur or his notarized representative;
• promotion of a brand without its registration is prohibited;
• distrust of large firms, difficulties in cooperation;
• existing restrictions on activities;
• IP is not subject to sale or re-registration;
• the risk of losing personal property when .

Advantages and disadvantages of LLC

The benefits of Limited Liability Companies include:

• a high degree of protection of the founders (each of them is solely responsible for their debt obligations, this is prescribed by the authorized capital of the enterprise);
• the possibility of attracting investments and additional founders, including foreign ones;
• the right to regulate the degree of influence on the management of the IP by increasing / decreasing the share of the founders of the LLC;
• the right to create the necessary governing bodies for any organization;
• no restrictions on the authorized capital;
• the ability to invest in assets, both tangible and intangible;
• each of the founders may, voluntarily withdrawing from the founders, receive their income up to four months after that;
• the ability to appoint a person other than the founders as the head of the LLC;
• the income of the enterprise can be distributed regardless of the size of the parts of the founders;
• in case of loss, taxes are not paid;
• the ability to cover losses in previous years with real profit;
• in it is possible to prescribe a ban on non-founders;
• investment attractiveness due to the opportunity to become a member of the founders;
• the right to re-register and sell.

An LLC is liable only to the extent of the property owned by the company. Foreclosure is not applied to the personal property of the founders.

Disadvantages of LLC

• the maximum number of founders should not exceed 50 people;
• in case of changes in the composition of the founders, it is necessary to update the documentation;
• the registration procedure is complicated, and the package of necessary documents is larger ();
• high cost of registration (state duty will be 4000 rubles);
• the need to contribute the authorized capital during registration (minimum 10,000 rubles);
• additional costs for finding a legal address;
• observance of cash discipline;
• complex reporting system;
• mandatory accounting (regardless of the type of taxation);
• quarterly payment of dividends;
• payment of property tax;
• a complex process of cash settlements when one of the founders leaves;
• the need to record decisions of any economic actions;
• penalties are tougher;
• a complex liquidation procedure (more on the liquidation of an LLC -).

What is the difference between IP and LLC

The answer to this question is most often of interest to novice entrepreneurs. These types of registration are the most popular among small and medium-sized businesses. But it is impossible to unambiguously answer that one is better than the other. It all depends on a number of factors.

1. Types of activities of the future company.
2. Selected tax regime.
3. The number of employees.
4. Leased space.
5. The scale of the opened enterprise.

Based on them, the most acceptable option for registering a business is selected. But it is important to remember: there is a fundamental difference between IP and LLC. Although an individual entrepreneur acts on an equal footing with a legal entity in work, he is considered primarily a citizen and is personally responsible (including property) for his actions.

LLC is an independent player in the market, performing the role of a screen for the founders who do not bear any personal responsibility. Their liability is limited to the authorized capital.

IP or LLC: criteria for the right choice (video)

You will learn about the important criteria that every entrepreneur must consider before choosing a form of registration for their business, in order to avoid erroneous actions.

These business registration forms differ according to the following criteria:

• registration;
• liquidation;
• revenue management;
• responsibility;
• Accounting;
• form of business organization;
• activity restrictions.

Registration features

To register an LLC, you will need to have an authorized capital (10,000 rubles), a seal, and open a current account. You don't need any of this to open an IP. For entrepreneurs, this procedure is carried out at the place of residence indicated in the passport. In the absence of a permanent residence permit, it is possible by temporary registration. In many cities of Russia, you can work, and registration of branches is not required.

LLC is registered at the legal address of the central office. To work in several cities, you must also register a branch / representative office / division. In the case of registering a branch, the rights to the simplified tax system will be lost, in order to preserve them, it is better to register a separate division, and from 2016 a representative office is also possible.

Registering an LLC is a complex process and will require more time and effort from the entrepreneur. To prepare a package of necessary documents, you will have to resort to the services of a lawyer and a notary.

Registration of an LLC requires the presence of all participants in the organization in the tax office without fail. And all the founders must come in 3 days to receive the following documents:

• seal and charter;
• on registration with the tax authority;
• on registration of a legal entity;
• an extract from the general list of legal entities.

About liquidation

IP is relatively simple, fast (5-7 days) and inexpensively closed (liquidated). To do this, you only need to submit an application by filling out the form P26001 and notarizing it. The state duty for liquidation is 160 rubles.

It is more difficult to liquidate an LLC, this procedure is more expensive (state duty 800 rubles) and longer (up to 60 days). To do this, it is called, it makes a decision, which is necessarily recorded, on the liquidation of the company and creates a liquidation commission.

Within three days, an application (form P15001) certified by a notary and a protocol on the appointed commission are submitted to the tax authority. Then the announcement of the termination of activities is published in the State Registration Bulletin. After that, declarations and reports are submitted to the tax office, and all tax debts are closed. The enterprise is deregistered within 5 days.

Revenue management

A private entrepreneur has the right to dispose of the proceeds (including on the current account) at his own discretion. He can spend them on personal needs, on the needs of the enterprise. But when calculating taxes, it is forbidden to include funds spent for personal purposes in the expenses of an individual entrepreneur.

And the founders of an LLC must pay 13% of any profit, unlike an individual entrepreneur, such a tax is not provided for him. In addition, the withdrawal of money from the current account must certainly be reflected in accounting. The proceeds received in the cash desk / account of the LLC can be used exclusively in the interests of the company (payment to suppliers, payment of salaries, payment of taxes and fees, etc.).

Property liability

The IP will be responsible for its actions and activities of the IP even after liquidation.

The founders of an LLC are liable for obligations in the amount of a contribution to the authorized capital, they do not risk personal property in any case (even when the enterprise is at the stage of bankruptcy). The legal entity is always responsible. The liquidation of an LLC terminates all of its obligations.

If the case concerns administrative responsibility, the individual entrepreneur is responsible for violations as an official. In relation to the LLC, the penalties will be more severe.

Features of bookkeeping

An individual entrepreneur may not keep accounting if he works alone (you do not need to pay the PFR and the FSS and submit a quarterly report). But when incomes/expenses are large, it is impossible to cope without an accountant. The presence of employees always provides for reporting.

And for all LLCs since 2013, the obligation to maintain and submit accounting (regardless of the form of taxation) is mandatory. Companies are required to submit 4-FSS and RSV-1, from 2016 and 6-NDFL quarterly.

Restrictions

For Limited Liability Organizations, the law does not provide for restrictions on the types of activities, and individual entrepreneurs are prohibited from carrying out such types of activities:

1. Everything related to alcohol, weapons, aviation and military equipment.
2. Security services.
3. All types of investment and banking activities.
4. Manufacturing of medicines.
5. Transportation of passengers and cargo by air.
6. Insurance.
7. Tour operator activity (permitted).

To provide such services, it is necessary to register an LLC.

Features of taxation

Only for individual entrepreneurs there is the possibility of choosing a patent taxation system. Companies cannot use this system. Taxation systems ( , ) are identical. IP on OSNO must pay personal income tax, and LLC - income tax. IP does not pay property tax, and the company on OSNO is obliged to pay. As for the employees of individual entrepreneurs and LLCs, there are equal conditions in working with them (according to labor legislation).

But there is a trend: many companies refuse to work with IP, considering them less reliable partners. And state structures have an order to give state orders exclusively to organizations.

In what cases is it better to open an individual entrepreneur, and in what cases - an LLC

If the enterprise is planned to be opened for the organization of production, the choice in favor of an LLC or an individual entrepreneur will depend on the direction of its activity. Since the legal form of IP does not allow the production of medicines or alcoholic products.

In this area, an individual approach is important: for a novice entrepreneur who wants to open his own business, but does not have experience in accounting and economic activities, it is more reliable to register as an individual entrepreneur. This is the optimal solution for trying to implement the simplest business plan with minimal risk: it can be closed without problems in case of failure.

IP is a good choice for an entrepreneur whose goal is the stability of production volumes, he does not plan to expand. If large-scale production is initially planned, it is better to register an LLC.

If an enterprise is registered as an LLC, the range of its capabilities is significantly expanded. At the same time, the share of responsibility for conducting business activities decreases for the entrepreneur, since he is the manager and employer in one person. But at the same time, he has the right to social protection, like all workers.

In the case, the founder loses only part of the property that he owned, and no more. Having foreseen a crisis situation, it is possible to withdraw your part of the property from the general balance in advance.

When opening an enterprise providing services to the population, it is necessary to take into account all the pros and cons of an LLC and an individual entrepreneur. Since for the latter there are restrictions in this regard.

If the question arises: “Which is better for trading - LLC or IP?”, The answer will again depend on what is planned to be sold, where and how. For retail trade in small shops (with the exception of alcoholic beverages and not), IP registration is suitable. If the area of ​​the outlet is up to 150 m 2, then you will not have to pay VAT, and the income tax will be 6 - 9%.

For trading on a larger scale (organizing a trading network, supplying supplies to other enterprises, etc.), it is more profitable to register an LLC. Both forms of business registration are acceptable for opening online stores. The correct choice of one of them depends on the goals and scope of the entrepreneur's activity.

When is the best time to choose an IP?

Registration as an individual entrepreneur is the best option for such cases:

1. Sole Proprietor plans to run a business.
2. Wants to manage their own income.
3. Cooperation with large firms is not planned.
4. Wants to make purchases without supporting documentation.

It is more profitable to give preference to an LLC under the following conditions:

1. When there are several founders.
2. If investment capital injections are supposed.
3. When a business is opened for promotion and resale.

As for retail trade, an LLC is suitable for entrepreneurs who plan to expand their business and cooperate with large companies, including foreign ones. And also for those who need to attract borrowed or investment funds. Another criterion for choosing the form of registration is VAT. Who wants to work with VAT, chooses an LLC, without it - registers an individual entrepreneur.

It is impossible to unambiguously answer the question of what is better to open - an individual entrepreneur or an LLC. For each specific case, it is necessary to analyze all important aspects on an individual basis. And in any case, the owner has to do this and then make the right decision.