An individual can (and should) work independently. This option is acceptable at the initial stage. But gradually expanding, increasing speed, it is difficult to cope alone. Then a legitimate question arises - can an individual entrepreneur hire employees? Of course, an individual entrepreneur can hire employees. The legislation of 2018 does not prohibit this, but provides for certain nuances for different categories of individual entrepreneurs. How to formalize an employment relationship and not violate the law, we will tell in the article.
Restrictions on the staff of employees
Any individual entrepreneur can hire employees by concluding with them. You can do this at the initial stage or after some time. The snag lies only in the number of mercenaries. There is a "gradation" of the number of jobs, which is determined by the scope of the IP. In other words, the more serious the organization, the more staff:
- The smallest number of employees can have an individual entrepreneur working on. 5 employees are allowed, regardless of the fullness of employment.
- Small organizations registered as individual entrepreneurs are allowed a staff of up to 100 units. The same right has an individual entrepreneur located on. If you step over this threshold even by one unit, the individual entrepreneur loses preferential terms and the organization passes into the category of medium-sized enterprises (according to the requirements of the Tax Code No. 346.29, paragraph 2).
- In an average company, from 101 to 250 employees can be employed at the same time.
- Anything above 250 units is relevant only to large companies.
There is a "gradation" of the number of jobs, which is determined by the scope of the IP.
Before deciding to hire additional labor, it is worth considering how many employees will be enough for you to grow your business.
Remember that the number of employees is people for the reporting period before the tax. Even those employees who work part-time or part-time should be taken into account. The maximum number should not exceed certain parameters.
Employment rules
An individual entrepreneur who wishes to involve employees in his activities acquires the status of an employer, which obliges him to comply with the requirements of the Labor Legislation (TL) and the Civil Code (CC).
A hired individual is not an employee until labor activity (performance of certain duties) has begun and an employment contract (TD) has not been concluded in accordance with the rules established by Article No. 57 of the Labor Code. If an individual entrepreneur uses labor without a TD, he violates human rights and the laws of the Russian Federation.
To formalize an employment relationship with an applicant, the applicant must write an application for employment, indicating the position. Based on this application, the IP takes the following steps:
- Issues an order on the admission of an individual to a certain position, in accordance with Art. 68 TK.
- Concludes TD in 3 copies.
- Within 30 days from the date of registration of the TD (PFR) that the individual entrepreneur has become an employer (according to Order No. 296p of the PFR Department).
- Within 10 days after the first TD submits data to the Social Insurance Fund (FSS) (according to Regulation No. 574N of the Ministry of Labor).
After these procedures, an individual entrepreneur becomes an employer. He is obliged to submit reports on time and pay for each employee. Even a person who is on must be issued according to the rules.
If an individual started work without drawing up an employment agreement, a fine may be imposed on the individual entrepreneur. In 2018, these amounts range from 1,000 to 300,000 rubles, depending on the violations. Sometimes it is non-monetary in nature:
- Blocking of IP activity up to 90 days.
- Bringing to criminal responsibility.
- Deprivation of the right to commercial activity for a specific period.
Therefore, it is best to hire an employee according to the rules.
Preparation of documents and IP reports
An individual entrepreneur can hire employees and is required to have the following documents for each staff unit, in addition to the employment contract:
- Instruction on the rules of work for an employee, signed by the latter.
- Employment book, issued according to the rules.
- Personal card of the employee in the form T2.
- Vacation schedule.
- Employee Liability Agreement.
- State timetable.
Summing up
An individual entrepreneur can hire employees at any time during his activity. An individual entrepreneur must take into account the turnover of the business in order to understand how many people should be on his staff. Particular attention should be paid to the number of those who have chosen UTII or a patent.
Any hired employee must be registered under an employment contract, and information must be transferred to all funds. Observing the rules of labor legislation and the Labor Code, you can hire employees to help you for the full development of your business. Extension is always good.
An individual entrepreneur in the course of his activity is faced with a variety of complex issues. One of them is how can an individual entrepreneur formalize an employee if, for example, he had no employees until that moment? After all, the correct filling of all documents will protect the entrepreneur and his staff from possible problems with tax or other authorities.
How to register an employee in IP?
In order for an individual entrepreneur to be able to employ employees, it is required. If the activity is based on a patent, then you can hire no more than five people to cooperate as employees. Before hiring staff under an employment contract, familiarize yourself with the relevant legislation in order to avoid inaccuracies and troubles associated with the preparation of personnel documentation.
If you cannot cope with the acceptance of an employee on your own, you can contact a specialist who will help you with this issue. It will be possible to cooperate with him through a service contract if he is also an IP.
How to hire an employee to work in an individual entrepreneur under an employment contract?
When hiring employees, an entrepreneur incurs not only additional costs, but he also has new obligations both to the employee and to the state. The scope of these obligations depends on how the contract will be concluded and what items it will include.
The procedure for individual entrepreneurs when accepting an employee for a position
- With an employee, it is necessary to conclude either an employment contract or a civil law contract.
- In what case is an employment contract concluded? If the future employee will perform the same type of work for a long period of time, such as a salesman, security guard, etc. The employment contract specifies all aspects of the work schedule, remuneration, obligations of the employer and employee.
- Civil law is concluded in cases where the employee will perform the work one-time in a certain period of time and with a limitation on the timing of performance. For example, designing an organization's website, carrying out repair and construction work in the company's premises, etc.
- Within ten days after the employment contract was concluded, the entrepreneur must register with the Social Insurance Fund and the Health Insurance Fund as an employer.
- Within one month after the conclusion of the employment contract, the individual entrepreneur must register with the Pension Fund of the Russian Federation as an employer. After registration is completed in all funds, the entrepreneur will receive special notices indicating the numbers for paying taxes on the employee. They will differ from those that were assigned to the IP to pay taxes and other contributions for themselves.
- We directly conclude a contract with an employee and draw it up in accordance with the current legislation. We make a mark in the acceptance of an employee for a certain position. Subsequently, in order to hire new staff members, it will not be necessary to register with various funds and bodies, but simply conclude an agreement between the employer and the employee and fill out the necessary personnel documents.
How can an individual entrepreneur register employees? What type of contract to choose?
If it is possible to conclude two different types of contracts between an employee and an employer, it is necessary to consider in which cases it is acceptable to use one or the other of them.
In which of the cases would it be appropriate to conclude a certain option?
If the work of one type will be performed by an employee for a sufficiently long period of time, an employment contract is concluded.
If the work provides for the performance by the employee of a specific work, which is also limited in time, a civil law contract is concluded.
What legislation is being regulated?
The registration of employees in an individual entrepreneur under an employment contract is regulated by the Labor Code of the Russian Federation, and civil law, respectively, by the Civil Code.
Is information on contracts entered in the work book?
If the employee was registered by the employer under an employment contract, then information about his employment must be entered in his work book. But if a civil contract is concluded between an employee and an employer, no entry is made in the work book.
Is it necessary to pay insurance premiums for personnel to the state budget?
Health insurance, pension insurance and social insurance are mandatory contributions when registering an applicant for an individual enterprise through a contract. Also, all contributions are required to be paid for the employee if cooperation takes place under a civil law contract, except for social insurance payments, unless this condition is stipulated by the civil contract that was concluded.
What are the social guarantees provided by the employer to staff members?
In accordance with the provisions of the contract, the following is carried out:
- regular payment to the employee of his salary,
- sick pay,
- paid annual leave,
- payment of benefits in connection with the dismissal of an employee at the initiative of the employer,
- guarantee of the necessary conditions for working activities.
When concluding a civil law contract, its terms are negotiated by the employer and the employee, and may not contain those items that are mandatory when drawing up the contract. That is, the contract should contain only those conditions that will suit both parties.
What documents draw up the relationship between the employer and the applicant who is hired?
When concluding an employment contract: a written application from the applicant with a request to hire him and an order from the employer to hire him.
If the registration of employees at an individual entrepreneur occurs through the conclusion of a civil contract - only this document itself.
Registration of employees to work in an individual entrepreneur implies the signing of certain documents.
Important points: legislative aspect
Before registering an individual entrepreneur, you should study the Labor Code and follow its articles. Mandatory conditions that must be present in the contract in accordance with Article 57 of the Labor Code of the Russian Federation:
- Full name of the employee and employer;
- information about the identity documents of both parties;
- identification number assigned to the employer as a taxpayer;
- the date of conclusion of the employment contract and the place of its signing;
- job functions of the personnel;
- specific place and address of work;
- in accordance with what conditions the remuneration will take place (salary, bonus payments, subsidies, allowances, incentives);
- work and rest schedule of the employee;
- compensation to be paid when working in harmful or dangerous working conditions;
- conditions of compulsory insurance of the employee.
How to register employees in an individual entrepreneur is stipulated in the Labor Code. But some unscrupulous entrepreneurs who want to save on those contributions that are made for staff can draw it up not under an employment contract, but under a civil law one. In this case, it is likely that if disputes arise between the employer and the employee in court, this contract may be recognized as labor. After the proceedings, the entrepreneur will still have to pay all the necessary contributions and taxes for the employee, to ensure the preservation of his rights in accordance with the law.
The procedure for registering an individual entrepreneur is quite simple, and the entrepreneur is not required to maintain a complete record of personnel and personnel documents. But still, it is worth taking care of filling out all the necessary employment forms in order to avoid inaccuracies and controversial issues with regulatory authorities and possible disputes with personnel.
What set of documents is provided from the applicant to the employer?
Before registering an employee in an individual entrepreneur, he will be required to provide the following documents:
Mandatory contributions of an individual entrepreneur
Since an individual entrepreneur does not receive wages, from which insurance premiums are deducted on a mandatory basis, but receives profit from his activities, he must pay these contributions for himself in a special manner. The amount of these payments directly depends on the amount of profit of the entrepreneur.
The legal framework governing labor relations in the Russian Federation is quite extensive and not all citizens can fully understand it. This entails a misunderstanding of some situations. In particular, many do not know if IP can work with IP? This happens often, so knowing the answer to the question is not just useful, but necessary.
Since individual entrepreneurship is not considered a legal form of business registration, it means that an individual entrepreneur is an individual who has at his disposal the attributes inherent in legal entities, for example:
- checking account.
By the way, they are not mandatory.
Many people believe that since the name of the legal form contains the word “individual”, then the individual entrepreneur must carry out all entrepreneurial activities individually. This is definitely not the case.
Individual entrepreneurs are not required to work in their firm alone, they can hire employees and form a staff of workers.
True, for this you will need to draw up documents for employment - to conclude employment contracts.
The minimum number of employees that an individual entrepreneur working on a patent must have is 5 people. Individual entrepreneurs on UTII or STS can have a staff of no more than 100 people. If an entrepreneur crosses this threshold by at least one, then he will move into the category of medium-sized companies (from 101 to 250 people) and lose all preferential working conditions. Firms with more than 250 employees are considered large.
This is what the "gradation" of the number of jobs looks like, determined by the scale of the IP.
Director at IP
As noted above, an individual entrepreneur is not prohibited from hiring staff and appointing them to various positions, including senior management positions.
These include, for example:
- CEO.
- Executive Director.
- Financial director.
- Commercial Director.
- Technical Director.
- Director of Marketing/HR/Logistics/Quality.
The list can be continued for a long time. It is important to understand the following: an individual entrepreneur can indeed have a director. The entrepreneur himself appoints him. True, all responsibility for what is happening in the company (especially for the financial condition and ability to pay debts) is still borne by its owner, and not by hired personnel.
In the event of the bankruptcy of the company, the individual entrepreneur, and not the manager, remains liable for obligations.
In practice, there are very rare cases when a citizen, after registering an individual entrepreneurship, appoints other persons to managerial positions. Most often, he himself is the head of his company.
Companies that have directors or other top management are most often legal entities.
An individual has the right to work under an employment contract and at the same time register an individual entrepreneur and do business. 
Exceptions are civil servants:
- officials;
- employees of the Armed Forces of the Russian Federation;
- prosecutors;
- employees of the Ministry of Internal Affairs.
If a citizen is officially employed and at that time registered an individual entrepreneur, then he is not obliged to inform the employer about his additional status. Moreover, he does not have to leave his current position. The activities of individual entrepreneurs are not recorded in the work book, only records of work under an employment contract are entered into it. Information about a citizen as an individual entrepreneur can only be found in the state register. It is issued upon special request.
By the way, employers themselves are conceived interested in working with citizens not as employees, but as entrepreneurs who fulfill the terms of the contract. First of all, this is due to the economic benefits of both parties.
For the employee, the employer is obliged to pay insurance premiums, he also needs to pay for vacations, sick leave, and a social package.
When working with an individual entrepreneur, all these aspects disappear: the individual entrepreneur pays the contributions for himself.
A citizen working in the status of an individual entrepreneur also receives economic benefits in this case. If he works on a simplified taxation system of "6%", then he must pay only 6% as tax from the profits received, and not 13% (this is the amount of income tax for an employee). Although in this case it must be taken into account that the individual entrepreneur does not have labor guarantees. 
However, this option of cooperation, which is unfavorable for the state in terms of tax revenue, can be considered by the Federal Tax Service as an attempt to evade taxes by unreasonably replacing labor relations with civil law ones. Of course, in litigation, the law often takes the side of entrepreneurs, but this is far from always the case.
To avoid such problems with the tax authorities, entrepreneurs should carefully consider drawing up a cooperation agreement.
It should not contain wording that is typical for labor relations, rather than for business.
These include:
- Job titles and their respective subordination. In business relations there are customers and performers, but not bosses and subordinates.
- Salary, wage rate or compensation. The work of the contractor is paid for the achievement of the final result, which is provided for in the contract.
- The obligations of the contractor to comply with the rules established in the company for which he works.
- Social package, creation of working conditions.
If these aspects are not included in the contract concluded between entrepreneurs, then it will be difficult for the tax authorities to defend their innocence in court.
An individual entrepreneur working under an employment contract enjoys all the privileges that are provided for him by law: medical and pension contributions to state funds, regular payroll, paid vacations and sick days.
Hiring an individual entrepreneur to work under an employment contract
There may be cases when an already registered individual entrepreneur gets a job under an employment contract. The work of an individual entrepreneur at an individual entrepreneur is not prohibited by law. There is also no need to close the IP. Just keep in mind that the status of an entrepreneur does not provide any privileges for a job interview.
It does not matter for the employer whether he concludes an agreement with an ordinary citizen or with an individual entrepreneur. If an individual entrepreneur hires an individual entrepreneur, then according to the standard procedure, he will carry out settlements with the employee and state funds, pay contributions for him.
According to the clauses of the legislation of the Russian Federation regulating the duties of an individual entrepreneur, an individual with this status must pay insurance premiums for himself.
From the foregoing, it follows that for an entrepreneur working under an employment contract, contributions to the Pension Fund and the Social Insurance Fund are required to be made by both his employer and himself. All this will ultimately affect, for example, the size of the pension (in a positive direction).
An individual entrepreneur is obliged to pay insurance premiums for himself even if he does not receive any profit from the business.
True, there is an exception in the form of grace periods when an individual is unable to conduct entrepreneurial activities.
These include:
- service in the Armed Forces of the Russian Federation;
- caring for a child under 1.5 years old / a person over 80 years old / a disabled person.
Also, insurance premiums for themselves may not be paid by individual entrepreneurs who are spouses of diplomatic mission employees or military personnel under a contract who have not been able to find a job for 5 years.
In 2019, the minimum amount of insurance premiums for an individual entrepreneur is 32,385. If his income exceeds 300,000, then another 1% is added to the minimum level in excess of this limit. For example, with an income of 600,000, an entrepreneur will have to pay a total of 35,385 (+3,000).
If an individual entrepreneur has a staff, then he is obliged to pay for them a total of 30% of payments under employment contracts to insurance funds. There are legitimate ways to reduce these contributions.
How to recruit IPv IP? Since an individual entrepreneur does not have any privileges, due to his status, when hiring under an employment contract, then he must be employed as an ordinary employee.
The standard procedure takes place in 8 stages:
- Obtaining consent from a future employee for the processing and storage of personal data (this aspect is discussed in detail in Chapter 14 of the Labor Code).
- Carrying out introductory work on familiarization with the rules on labor protection and other processes of labor activity. Registration of a citizen in a journal (this item is described in article 212 of the Labor Code of the Russian Federation).
- Familiarization with the terms of calculation, as well as other conditions that affect the workflow.
- Conclusion of an employment contract.
- Issuing an order on hiring a citizen, familiarizing him with the document.
- Signing a document imposing liability on the employee (if he will deal with the storage of property).
- Registration of a personal card and work book.
- Registration of an individual entrepreneur as an employer in state funds.
What you need to convey to the employee in paragraph 2:
- general information about the activities of the entrepreneur;
- labor protection standards (according to the legislation of the Russian Federation);
- concepts of working time and rest;
- working conditions, the presence of harmful factors, if any;
- rules of conduct for employees in the workplace;
- the procedure for issuing special protection, if required;
- circumstances of accidents at the workplace, the procedure for their occurrence;
- responsibility for violation of the charter/instructions;
- fire safety rules;
- first aid rules for victims.
Article 67 of the Labor Code of the Russian Federation states that an employment contract is concluded no later than 3 days from the moment the employee is allowed to perform any duties.
In practice, the document is often signed even before the citizen begins to perform the assigned work, in order to avoid any problems.
How to apply for an IP to work for an IP?
In order for an entrepreneur to be able to hire a person with a similar status, the latter must submit the following documents:
- passport / its notarized copy;
- work book;
- military ID (if any);
- diploma / certificate of education;
- insurance pension certificate;
- the conclusion of the medical board (for the conditions specified in Article 212 of the Labor Code);
- certificates of no criminal record, from a narcologist, a psychiatrist (when concluding an employment contract with a minor);
In most cases, individual entrepreneurs are prohibited from requiring other documents by law.
An entrepreneur can conclude an employment contract with his employee, which is divided into two classifications:
- By urgency: urgent, concluded for an indefinite period.
- By the presence of a probationary period: with a probationary period, without a probationary period.
The presence of a probationary period makes it possible for an individual entrepreneur to assess the possession of the required skills of a potential employee. If they do not satisfy him, then the entrepreneur has the right to terminate the concluded contract under the relevant article of the Labor Code. 
After hiring an employee, it is necessary to register him with the Pension Fund of the Russian Federation (within 10 days), as well as with the Social Insurance Fund (within a month) and the Compulsory Medical Insurance Fund (within 30 days).
The terms indicated in brackets are counted from the moment the citizen is hired.
A circle of persons is singled out, the conclusion of an employment contract with which requires a special approach.
These include:
- minors;
- Foreign citizens;
- disabled people;
- people who combine several jobs (part-time).
When employing minors, it is necessary to take into account that:
- An employment contract is concluded with persons under the age of 16 who do not have medical contraindications.
- Persons under the age of 15 may only be contracted for light work.
- When signing an employment contract with adolescents aged 14, it is necessary to obtain documentary consent from their parents / guardianship authorities.
Minor employees are entitled to an annual medical examination at the expense of the employer, as well as part-time work.
When employing foreign citizens, an individual entrepreneur must demand from them:
- migrant's patent (not required for citizens with refugee status, as well as for those who have a residence permit in the Russian Federation);
- temporary residence permit;
- voluntary health insurance policy.
When hiring a foreign citizen, an individual entrepreneur must notify the Federal Migration Service of this within 3 days at the place of registration of the entrepreneur using a registered letter. Similarly, when it is necessary to dismiss an employee.
When hiring disabled people, individual entrepreneurs need to take into account not only the recommendations indicated in their rehabilitation card, but also the mandatory benefits:
- Shortened working week (for disabled people of groups I and II).
- 30 days of additional leave.
- Additional days off without pay (60 days a year).
Next, it is worth deciding who the part-timers are. These are persons who, in their free time from their main work, perform other regular paid work. 
For them, the employer does not have the right to set a working day longer than 4 hours.
Some believe that the labor legislation also provides for special working conditions for pensioners, but in reality this is not the case. Those who are on a well-deserved rest are equated to ordinary workers without any benefits.
Labor legislation generally prohibits the establishment of any restrictions for pensioners.
You can start working at the age of 16 (sometimes at 14), and you can retire:
- women over 55;
- men over 60.
However, retirement at this age is not mandatory. A citizen has the right to continue working in his position or get another job, for example.
An employment contract on a part-time basis cannot be concluded with minors if the work is related to driving vehicles or harmful conditions.
As a result, it is important to learn the following points:
- Sole proprietors are allowed to hire employees and appoint management personnel.
- You can simultaneously work under an employment contract and at the same time register as an individual entrepreneur. At the same time, you do not need to quit your job, as well as notify the employer about the registration.
- An individual entrepreneur can work under an employment contract, but even then he is not exempt from mandatory insurance payments (with the exception of some cases described above). His employer is also required to pay insurance premiums for individual entrepreneurs. All this will be taken into account when applying for a pension, for example.
- The minimum amount of insurance payments for an individual entrepreneur per year is 32,385.
- When employed, the status of an “individual entrepreneur” does not give a citizen any privileges compared to other potential employees. How can an IP hire an IP? An individual entrepreneur is hired as an ordinary citizen in accordance with the rules established by the Labor Code of the Russian Federation.
Can a Sole Proprietor Hire a Sole Proprietor? Yes, as an ordinary employee who fulfills the terms of an employment contract.
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An individual who has been registered with the relevant authorities in accordance with the requirements of the law is an individual entrepreneur. After registration, he has the right to engage in the activities of a businessman on the basis of and within the framework of the relevant legislation for an individual entrepreneur.
The activity of an individual entrepreneur is aimed at making a profit, for example, from the sale of any product, the performance of certain works or services. An individual entrepreneur is responsible for the obligations assumed by the property that belongs to him.
Right to hire a worker
Part of the population of the country, in order to provide themselves with the means of subsistence, offers their services for labor for a monetary payment, called wages. The other part, for example, some businessmen, are engaged in entrepreneurial activities on their own or by attracting other individuals with a contract (employment or civil law) – These are employees of the IP.
The legislation of the year provides for the conclusion of an employment contract for an indefinite or five-year period, for the duration of any work.
It happens that it is impossible to set a deadline for the implementation of the upcoming work. In this case, a fixed-term contract is allowed. Civil law acts are concluded for the performance of one-time work or those for which it is not necessary to comply with the working day. It is forbidden to accept a person even for a trial period without drawing up an agreement, even in cases where an individual entrepreneur works on a patent. Under this tax regime, the number of employees should not exceed 15 people.
The entrepreneur must distinguish between legal differences in contracts. So, an entrepreneur can hire, for example, a salesperson only by concluding an employment contract. Since the conclusion of a contract on liability, which is in the interests of the entrepreneur, is possible only after an employment contract.
The submitted application is the source document for employment (position and type of work are indicated) and the preparation of an employment contract in three copies: for an employee, an entrepreneur and an employment center.
When concluding a civil law agreement, the measure of material liability of an employee is determined by the rules of civil law. The employee is not required to present the work book and military ID to the individual entrepreneur, since this employer does not make records and does not keep military records.
IP registration procedure – employer
The law establishes the deadlines for registering an individual entrepreneur in the status of an employer in the FSS and PF: 10 days in the first case and 30 days in the second. Violation of registration deadlines entails significant fines.
Contributions to the FSS and PS are charged only from concluded employment contracts. The list of documents for accounting is determined by the relevant departments, but it is imperative to submit an employment contract confirming that the individual entrepreneur has employees.
The first contract on a civil law basis obliges the individual entrepreneur to register as an insurer-employer only in the Pension Fund, since contributions are not collected from such contracts in the FSS.
Since 2006, individual entrepreneurs have been exempted from the need to register employment contracts in any instance. In addition, they should not notify about the termination of concluded contracts. Thus, sole proprietors and employees can do the job without any problems. If in some cities officials require registration data, then they commit arbitrariness.
Responsibilities of an individual entrepreneur as an employer
As soon as employees appear at the IP, he is obliged:
- maintain personnel records;
- pay income tax on the salary of an employee;
- pay contributions to pension and health insurance;
- submit reports once a year – on confirmation of the type of activity, on the number of staff, a register of payments related to employees.
The issue of staffing is important. It is defined by law: a small business does not have the right to hire more than 100 employees, including part-time workers and part-time workers. An individual entrepreneur begins to keep personnel records from the moment of hiring at least one person. The volume of accounting is determined by the Labor Code of the Russian Federation. In the absence of personnel documentation, regulatory authorities can hold individual entrepreneurs liable, up to criminal liability.
The procedure for granting tax deductions and personal income tax rates are determined by the Tax Code. An individual entrepreneur, as an insurer of his employees, pays contributions to the Pension Fund, the Social Insurance Fund and the Medical Insurance Fund, which are regulated, starting from the year, by the Tax Code. The rates of insurance premiums depend on the amount of income of the individual entrepreneur. If an unregistered employee is found by the regulatory authorities, the IP faces punishment: suspension of activities for up to three months or a large fine.
There is no such thing as a lot of money - a saying known since childhood turns into a life credo over time. For a family person living in a metropolis in a good area and with normal living needs, one source of income, as a rule, is not enough. Some, wanting to improve the family budget, invest in securities, others get two or three jobs, the rest try to combine employment and private business.
Recently, cases have become frequent when a person, having decided to open his own business, does not bother to find out if it is possible to open an individual entrepreneur if he is officially employed and occupies a specific position, and then loses both his permanent job and the business he started with difficulty.
In contrast to this situation, a citizen of the Russian Federation may deliberately refuse to formalize the status of an individual entrepreneur, not wanting problems at work. When his illegal activities become known, he will not only lose his job, but will also incur administrative and criminal liability.
All these difficulties can be avoided if you correctly approach the question of whether I can open an individual entrepreneur if I work, and what consequences such a decision will have for me.
Any businessman or employee who wants to start his own business in parallel must be clearly aware of the motives that prompted him to take this step, the strength of these motives and the possible consequences (both opportunities and threats) from the decision made.
In general, these motives are four:
- earn more than I earn now in order to have a decent life;
- do what you love, without violating the norms and rules established in society, enjoying yourself and benefiting others, without harming yourself;
- ensure the future well-being of someone else (family, relatives, friends);
- improve social status and take a favorable position in society.
Some motives stimulate a person more than others. A creative person who wants to do what he loves in his spare time from his main job and asking himself if a working person can open an IP will definitely say yes. The occupation itself, to which he has a soul, will compensate him for the lengthened working day, and the need to understand the intricacies of a new profession, and bureaucratic delays, etc.
Those who wish to combine individual entrepreneurship and current work simply to improve their financial situation should seriously weigh the pros and cons and only then make the final choice. Entrepreneurship is a risky activity that depends on a number of factors, and in the case of an individual entrepreneur, all business risks fall on one specific person.
An individual entrepreneur is not a form of business, but the status of a citizen, and individual entrepreneurship is a risky activity aimed at generating revenue and income. However, not all goals become achievable, while responsibility always comes in full.
When asked whether it is possible to work and be an individual entrepreneur at the same time, a person will immediately answer yes, but if you ask him if he is ready to risk all his property in case of failure, the answer will be ambiguous. IP, unlike other organizational and legal forms of business, assumes that an individual entrepreneur is liable for the obligations assumed in full.
This is a well-known fact, but when it comes to the seizure of private property, the entrepreneur feels that he has been cruelly deceived.
Also, combining labor activity with an individual entrepreneur, an employee may face certain risks.
Here are just a few of them:
- Controlling employers prefer their employees to give the organization all their free time and will not tolerate one of their employees doing an abstract business on the side, especially without notifying the authorities about it.
- IP requires constant participation and control by the entrepreneur at any time of the day or night, seven out of seven days a week. If the type of activity in itself has a high risk, then a businessman who combines an individual entrepreneur with his main job will be forced to constantly be torn between two fires. This, on the one hand, threatens him with failure in both areas of activity, and on the other hand, it may adversely affect his work and further performance.
- Since the duties of an individual entrepreneur are inseparable from his finances, there is a risk that with the loss of a permanent source of income (salary) and low business growth rates, the bankruptcy of an individual may occur very soon.
- IP, unlike other forms of business, does not have wide opportunities for delegation of authority. There is a high risk that while occupying an administrative position at the main place of work and managing your own business, control in one of the places may be lost, and moreover, irretrievably.
- If the type of activity that you do at your main job and your individual business are similar or the same, management may consider this an attempt at dishonest business dealing and even sabotage. In this case, not only the job will be lost, but also the reputation.
- Regardless of the receipt of income from economic activity, the individual entrepreneur pays a single social contribution from available sources. If the main source of income becomes such a source, the very idea of \u200b\u200bcreating a business loses its meaning. Expenses will go at a double rate, and income will disappear altogether, depriving the businessman of the opportunity to develop the business in the future.
Thus, is it possible to work officially and still open an individual entrepreneur, having overcome all difficulties - yes.
It is necessary to approach the issue of creating a business with all responsibility and common sense, thoroughly study all the requirements in order to register an individual entrepreneur, as well as tax and pension policy issues.
The Civil and Tax Code of the Russian Federation do not prohibit the opening of individual entrepreneurship to persons who:
- are citizens of the Russian Federation;
- have reached the age of majority;
- do not have direct prohibitions on the implementation of certain types of activities by a court decision;
- are not civil servants and notaries;
- are not legally incompetent and persons with limited legal capacity by court decision (people suffering from various forms of drug addiction, mentally unstable, dangerous to society and requiring specialized care).
In fact, any citizen, regardless of the presence or absence of employment, who satisfies all of the above requirements, can register an individual entrepreneurship in combination, without interrupting the main labor activity.
A special category includes prohibitions on opening individual entrepreneurs for civil servants, municipal employees, directors of state enterprises or their divisions, as well as those who are serving in the military.
The reasons for the ban are due to both economic and political, as well as universal risks.
It will be quite difficult for a public worker and an elected deputy to give up the temptation to lobby for the interests of their own business. To an employee of a law firm, the interests of his own business are likely to seem more important than a number of letters of the law.
On the other hand, working in public services in responsible positions obviously implies a high share of the workload, which cannot be combined with activities to create and maintain a newly created business.
The ban on opening your own business by law applies only to civil servants, the list of which is signed by the Decree of the President of the Russian Federation.
If you do not know for sure whether your position falls into a special list or not, it is better to consult with competent specialists.
If your immediate supervisor is loyal to your employment outside the main job, you can discuss this issue with him. If not, the Human Resources Department and the notary, who can be contacted with this question, know the answer to a sensitive question.
At the same time, you will get the opportunity to find out in advance how colleagues and superiors will react to the idea of opening an individual entrepreneur by you. A lawyer will advise on other important issues related to the opening of a private business.
The procedure for registering an individual entrepreneur who has and does not have a labor activity is the same, if there are no restrictions. By contacting a notary with a question whether an individual entrepreneur can work in another organization under a formalized employment contract and open his own business, and will receive a positive answer.
Neither in the work book, nor in the collective agreement, there may be no marks on the beginning of your business on the side, if the authorities do not insist on revising some clauses of the agreement.
In some cases, by mutual agreement of the parties, an individual acts both as an employee and as a customer. The contract for the performance of work is replaced by a civil law agreement, and payment is made in accordance with the act of work performed.
In order to apply for an IP, a working citizen will need:
- passport and individual taxpayer number;
- application form P21001;
- receipt of payment of state duty;
- an application for the transition to the simplified tax system in two copies (you need to choose a suitable taxation system in advance, otherwise it will be chosen by default on a general basis).
In the future, the entrepreneur will have to pay taxes on his own and without reminders, make contributions to the Pension Fund of the Russian Federation and the Compulsory Medical Insurance Fund. Also, the individual entrepreneur is forced to regularly submit reports to the tax and statistical services, in addition to the main activities related to document management.
There is no significant legal difference between whether you open an individual business before or after employment.
Whether or not an individual entrepreneur can work in an organization under an employment contract - yes. He acts as an individual. Contributions to the pension fund and the insurance fund from the National Assembly occur on a general basis, which, however, does not relieve the individual entrepreneur of obligations for contributions related to individual economic activity.
An entrepreneur is required by law to pay an insurance premium throughout the entire life cycle of a business. Exceptions are grace periods when a person is objectively unable to manage a business.
The basis for the exemption are:
- Caring for a child up to 1.5 years.
- Care for persons over 80 and care for the disabled.
- Army service and diplomatic mission of a married couple IP.
Subsequently, when calculating a pension, all grace periods and deductions both in the course of labor activity and in the course of commercial activity will be taken into account. Pensioners, along with other citizens, can open their own business and manage financial receipts.
Closing the IP and returning to the main job
If you objectively understand that you are not able to combine work and private business, the best solution would be to give up one of them.
The procedure for closing a sole proprietorship is simpler than closing a joint-stock company or LLC, but it also takes time, effort and a responsible approach.
If your decision to close the IP and return only to work under an employment contract is final, carefully consider a few points:
- when they intend to start the closing procedure (if the IP is not declared bankrupt by a court decision) and how to combine it with the main activity;
- do it personally or through a trusted person;
- whether you can pay off all the obligations you have assumed right now or is it worth postponing the closure of the IP for a more suitable time.
Risk is a noble and worthy cause, but in the case of personal finances and health, it must also be not only justified, but also well thought out. It is not difficult to open an individual entrepreneurship in combination with the main job, if you approach business wisely, it is much more difficult to benefit from this for yourself and your family for a long time.
