Which is more popular than a corporation or SP. What is better to open an individual entrepreneur or llc. Know and pay insurance premiums for yourself

11.01.18 57 948 0

Why do you need it and how much does it cost

The most common forms of business in Russia are individual entrepreneurs and LLCs.

Natalia Human

In short: an individual entrepreneur is suitable for those who will work independently, and an LLC is suitable for those who are going to do business with partners. Then you need to figure it out.

A responsibility

If the conditional Vasily opens an individual entrepreneur and something goes wrong, then in case of bankruptcy, Vasily will be liable to creditors with all his property - including the car he bought before he became an individual entrepreneur. In some cases, they may even take an apartment if he has more than one.

If Vasily opens an LLC and goes bankrupt, then in most cases only what belongs to the company will be taken away: property, money in current accounts and furniture from the office. Personal car should not be touched, although there is a way.

Administrative liability, that is, fines, also differs. Usually, the law provides for different amounts of fines for organizations and officials... Individual entrepreneurs are fined as officials by default. LLC hurts.

For example, if a company accepts money from individuals and does not have cash register, then the fine is from 75 to 100% of the settlement amount past the cash desk, at least 30,000 RUR. Penalty for individual entrepreneurs - from 25 to 50% of the calculation amount, at least 10,000 RUR.

Founders, documents and registration

An individual entrepreneur is an individual entrepreneur who has decided to go into business. He does it individually, he cannot have co-founders. To register as an individual entrepreneur, Vasily needs a passport, an application and a paid fee of 800 rubles. No legal address is needed: individual entrepreneurs are registered at the place of permanent residence in the passport.

Society with limited liability organized by one or several people - up to 50 founders in total. An LLC has an authorized capital, all founders invest in it. The minimum amount of capital is 10,000 R, the shares may be unequal.

How shares and profits are distributed in LLC

Basil

5000 RUB

Elena

3000 RUB

Peter

2000 RUB

If the business of the company goes up the hill, then the founders will receive profit in proportion to their investments.

If you want to contribute to the authorized capital property that costs more than 20,000 R - let's say computers - then an independent appraiser must assess their value and draw up a property appraisal report. it additional expensesthat fall on the founders.

In advance, even before registering a company, you need to agree on the name; legal address; the amount of the authorized capital (from 10,000 R); OKVEDah (types of activities that the company will be engaged in) and the tax system.

After that, you need to approve the charter and appoint general director - it can be from among the founders, or from the outside. If the company does not have co-founders, then the sole founder, by his own decision, appoints himself as the CEO or hires someone.

Please note: all decisions must be recorded on paper. If there is only one founder, print sole decisions. If there are several - minutes of meetings. Do the first protocol when the organization is created. Article 181.2 of the Civil Code lists what must be indicated when drawing up a protocol.

All of these protocols are insurance that validates the company's decisions. If something goes wrong, then in court you will operate with protocols.

How to submit documents

In large cities, documents must be brought to a single registration center, or ECR. In St. Petersburg, LLC is registered by MIFNS No. 15, in Moscow - MIFNS No. 46.

Here's what you need to collect:

1. Registration application legal entity (P11001). Passport data and TIN of all founders.
2. Legal entity charter.
3. Protocol on the creation of a legal entity.
4. Agreement on the establishment of an LLC (not needed if there is only one founder).
5. Receipt for payment of state duty.
6. Application for the transition to the simplified tax system, if you are going to work on it.

Additionally, you may need a document confirming the legal address, for example, a copy of the lease agreement, letter of guarantee from the owner of the premises or a certificate of ownership of the premises.

What documents will be issued after registration

Within three working days after submitting a full package of documents to the IFTS, the company will be registered, and you will receive a package of documents.

Certificate of registration with the tax authority. The certificate contains the TIN and the code of the reason for registration - KPP. The TIN is assigned to the organization once and remains unchanged throughout its existence; when the address of the legal entity changes, the checkpoint will change.

Record sheet of the One state register legal entities. Since 2017, this sheet has been a confirmation of the registration of the LLC. It reflects all the basic data about the company. If changes are made, for example, if the composition of participants or the legal address changes, the sheet will need to be received again.

Articles of Association with a mark of registration by the tax authority. Store it carefully. The charter must be amended if the legal address, the size of the authorized capital or the name change. To make changes, you will need to draw up a protocol general meeting of all participants, the documents must be submitted and registered with the IFTS. State duty for registration new edition charter - 800 RUR

800 RUB

state duty for registration of a new edition of the charter

The tax office itself notifies the pension fund, the FSS and the statistics authorities about the registration of the organization.

Can registration be refused?

Yes. In this case, you will receive a paper containing the reason for the refusal. It often happens that an incomplete package of documents was submitted, typos sneaked in, and so on.

In this case, you need to correct the error and submit the documents again. The state fee will have to be paid again.

How to choose a legal address

In fact, in the legislation of the Russian Federation there is no concept of "legal address", there is "the location of the company." But for convenience, we will continue to operate with the concept of "legal address".

The address at which its head is located is considered to be a legal address, in the language of lawyers - "a permanent executive body". This address determines the tax office in which the LLC will be registered. This address will receive paper claims from the IFTS, and the Pension Fund of the Russian Federation, and the FSS. If the company moves, it is necessary to amend the charter and the Unified State Register of Legal Entities, the state duty is 800 rubles. But there are times when you don't need to pay it.

The legal address can be your own and rented premises, and even the home address of the founder, but there are nuances everywhere.

Own premises must be uninhabited. The tax office may ask for a document on ownership (an extract from the USRN - the Unified State Register of Real Estate - or a certificate of ownership).

Rented premises. You need the owner's permission to use the address to register the LLC.

Home address of the founder or manager. The founder or manager, whose address is indicated, must be the owner of the apartment or have a residence permit in it. If the apartment has several owners, then each of them will need permission to use the premises.

The apartment is not such an interesting option as it might seem at first glance: the address will be indicated in the extract of the Unified State Register of Legal Entities, which can be obtained by any by-crocodile. At the same time, a pharmacy, warehouse, shop, dentistry office, etc. cannot be placed in a residential building.

Renting an address is a bad option. Basically, you pay not for the premises, but for the address where the company is registered. Further, depending on the price, your mail will be accepted at the address, or you can even be there if the tax authorities decide to visit the company with an on-site check.

You can also rent a room in a business incubator. IN large cities there are such business support centers. If the organization and type of activity meet the conditions of the business incubator (for example information Technology), then she can rent a room and register at the address of the incubator.

An individual entrepreneur does not need a legal address: it is registered at the place of registration. The organization needs to submit documents on the lease of the premises (or ownership of it), as an option, you can indicate the home address of the founder, but it is not desirable.

Current account and printing

An individual entrepreneur can work without a current account, and an LLC needs to open it immediately after registration. In Tinkoff Business, you only need the company's INN to reserve the details. To open an account - a photo of statutory documents, a photo of the passports of the founders, a photo of an extract from the Unified State Register of Legal Entities.

You can open several accounts at once in different banks - this is not prohibited.

Previously, all companies were required to have a seal, now no. If you do not write about the seal in the charter, then you do not need it. If you did, you will have to make a round stamp.

Name

Location

Tax

The amount of taxes depends entirely on the type of taxation system. Companies choose from four:

1. general, or basic system of taxation (OSNO);
2. simplified taxation system (STS);
3. unified tax on imputed income (UTII);
4. unified agricultural tax (UAT).

In some cases, additional taxes arise: excise taxes, water tax, transport, property, mining, etc. More on this another time.

You need to choose a taxation system with an eye on the business plan: you will work with individuals or legal entities, what will be the structure of the company's income and expenses. There are still a lot of nuances.

Consult with an accountant: you never know what they can write on the Internet.

To simplify, there are three criteria for choosing a tax system: type of activity, number of employees and income.

Choice of taxation system

By type of activity

OSNO - can be any kind of activity.

The simplified tax system cannot be used by banks, manufacturers of excisable goods, insurers, pawnshops. A complete list is in Art. 346.12 of the Tax Code of the Russian Federation.

UTII is suitable for retail, catering, consumer services.

ESHN - for business in the areas of production, sale and processing of agricultural products: crop production, agriculture and forestry, animal husbandry.

Choice of taxation system

By the number of employees

OSNO - any number of employees.

STS - up to 100 employees, including part-time workers and employees at the GPA.

UTII - up to 100 employees.

Unified agricultural tax - there are no restrictions for agricultural enterprises. For fish farms - up to 300 people.

Choice of taxation system

By income

OSNO - any amount of income.

STS - up to 150 million rubles per year. In 2018, companies that earned no more than 112.5 million rubles from January to September 2017 can switch to the simplified tax system.

If in the process of work the number of employees or income exceeds the limits, then the company is obliged to switch to OSNO and independently report this to the tax

With UTII, the tax base does not depend on income or expenses, but depends on physical indicators: the area of \u200b\u200bthe store, the number of cars or the number of employees. Unified agricultural tax - 70% or more of income should come from agricultural production.

What taxes are paid on income

OSNO - income tax 20%, VAT 18, 10 or 0%.

STS "Income" - 6%. STS "Income minus expenses" - from 5 to 15%. There is a dependence on the region and type of activity. For example, in the Leningrad Region the tax rate for the STS “Income minus expenses” is 5%, in St. Petersburg - 7%.

UTII - from 7.5 to 15%. Depends on the region, payer category and type of activity.

ESHN - 6%. Pay on income from which expenses have been deducted.

Accounting and tax accounting

There are two types of accounting: accounting and tax.

Accounting - this is an accounting of all business transactions in the organization: what was bought, what was sold to whom, etc. The idea is that the gendir looks into accounting and sees the answer to the question "where is the money?" SP are exempt from accounting and decide for themselves whether they need it.

For a company, there is no choice, full accounting is mandatory: you need to fill out the accounting registers. The register is a piggy bank of information about economic activity... In the register it is necessary to record information from cash receipts, consignment notes, acts, invoices and other primary documents.

On OSNO and STS, every year it is necessary to submit to the tax accounting (financial) statements, it is also the balance sheet, and the statement of financial results.

Tax accounting - information that helps you and the tax office calculate how much is owed from you. Here, only those transactions that affect the amount of tax are important, and the number and frequency of reports depend on the tax system.

Tax reporting depends on the tax system.

With OSNO - it is necessary to submit a profit tax and VAT declaration once a quarter. With the simplified tax system - once a year, submit a declaration according to the simplified tax system. With UTII - once a quarter, submit a declaration for UTII. With the Unified Agricultural Tax - once a year, submit a declaration for the Unified Agricultural Tax.

If the company has employees, then 2-NDFL (annually), 6-NDFL (quarterly) and calculation of insurance premiums (also quarterly) will have to be submitted to the tax office.

Also, reports will need to be sent to the funds - FSS (quarterly in the form of 4-FSS) and Pension Fund (SZV-M monthly, SZV-STAZH annually).

If there is no activity

If an individual entrepreneur does not have a job, then he is obliged to submit zero reports, and no one exempts him from fixed contributions for himself. Even if the individual entrepreneur did not earn anything, he is still obliged to pay 27,990 rubles for 2017.

A company on OSNO and STS, if it does not operate, does not pay taxes. It is necessary to submit zero declarations and financial statements, but not to pay. Please note that UTII must be paid for, even if there is no activity. If you do not want to pay, immediately after the termination of activity, deregister from the UTII.

If for some reason the company does not operate, then the CEO (when he is the only employee and participant) may go on unpaid leave. Unpaid leave - the director is not paid a salary, therefore, Personal income tax

USN, OSN - do not pay, UTII - pay

Contributions for PFR, FSS, FFOMS

Does not pay if the director is on unpaid leave

Earned money

Everything that the individual entrepreneur earned belongs to the individual entrepreneur. You can spend directly from your corporate card account, or you can transfer to personal card individuals. The main thing is to pay taxes and fees on time.

It is not so easy for the members of the company to receive their earnings, but there is a procedure for paying dividends. They are paid from net profit companies - that is, from the amount that remains after taxes and fees.

You can distribute dividends no more than once a quarter. From them the company must withhold and transfer 13% to the personal income tax.

How to close

It is simple to close an individual entrepreneur: you need to pay a state duty of 160 R (in 2017) and submit an application to the tax office or the MFC. The individual entrepreneur will be closed within 5 working days if the application was submitted to the tax office, or after 8 working days at the MFC. After that, you need to pay off the debts, if any, and sleep well.

Closing an LLC is longer and more difficult. As a rule, this is either self-liquidation or bankruptcy. Both procedures take time, but bankruptcy is also involved arbitration court with the bankruptcy commissioner. On average, it takes 3 to 5 months to close an LLC.

Participants have the option to sell their stake or divide the company.

Important

Get the support of a professional accountant. Do not solve difficult issues with advice and articles from the Internet. Don't risk it. Find a professional.

On the Internet there is a lot of information and comparative tables, which is better - LLC or individual entrepreneur. I will tell you how I choose the organizational and legal form for myself and for my clients. Here are the 8 most important differences between an LLC and an individual entrepreneur that will help you choose:

The most important conceptual thing in choosing between an LLC or an individual entrepreneur is that an LLC is for a large and serious business, and an individual entrepreneur is for small ones, for beginners, and sometimes for tax optimization.

The first difference is about responsibility.

I am often asked: "Is it true that the sole proprietor is responsible with all his property?"
- Yes it's true.

"Is it true that the LLC is responsible only for the contributed authorized capital of 10,000 rubles?"
- Yes it's true.

Lawyers can object to me that the LLC provides for subsidiary liability, and that the founders can also be liable with their property. They can. But they will be responsible only if the company cannot pay off its debts, and it will be proved that the founders really ruled the company and made decisions on a par with the CEO, and also had a malicious intent to accumulate that big debt. If the plaintiff does not prove this in court, then subsidiary liability will not be applied, and only 10,000 rubles will be collected from the LLC. from the authorized capital, if they still retained it.

1. Let's assume that the individual entrepreneur has a debt of 5 million rubles. in front of the counterparty, and cannot pay for it, but the entrepreneur has an apartment. Will an apartment be taken away from a person on account of a debt? Yes, they will.
2. Let's say an LLC has a debt of 5 million rubles. before the counterparty. And the founder and the director each have an apartment. Will their apartment be taken away from them? No, they won't. The LLC will declare itself bankrupt and calmly “forgive itself” your debt. And subsidiary liability is unlikely to be applied.

Thus, when deciding to choose an individual entrepreneur, carefully analyze your future activities. If it is risk based, open an LLC, take care of yourself.

The second is the withdrawal of money into your pocket from an individual entrepreneur or LLC

People start their own business in order to receive money and income from it. Therefore, immediately think about how you will get this money into your pocket. Withdrawing funds from an individual entrepreneur is 0%, withdrawing funds from an LLC is 13%.

You have earned money, paid taxes, and there are 100,000 rubles left on your account, you want to take it for yourself.

• SP will take 100,000 rubles. minus the bank commission.
• LLC will take 87,000 rubles. minus the bank commission.

Thus, withdrawing money from an LLC is much more expensive.

Third, an individual entrepreneur has the ability to apply preferential taxation systems: a patent or tax holidays

• A patent is when a fixed amount is paid and the individual entrepreneur pays nothing more, regardless of income.
• Tax holidays are when an individual entrepreneur does not pay income tax at all. However, it pays contributions to the pension fund (hereinafter referred to as the PFR).

These modes can only be used by individual entrepreneurs, they are not available for LLC. Every subject Russian Federation applies its tax holidays law and its patent law. Start with the Tax Holidays Act and look for your type of business in it. If it is there, it is advisable to open an IP. If it is not there, and a large income is planned, see the patent law. If the patent is not beneficial to you, then feel free to consider LLC.

Fourth - reporting of individual entrepreneurs and LLC

It is no secret that individual entrepreneurs have less reporting.

• An individual entrepreneur without employees submits reports once a year.
• An LLC without employees submits reports once a month, thanks to our pension fund. An individual entrepreneur with employees also leases like an LLC, once a month.

Therefore, if you have employees, it makes no difference what to open. LLC will even be more convenient, and I will explain the reason below.

Fifth - legal address

A year ago, there were great difficulties in finding a legal address if you did not have your own. I had to buy a fictitious one from sellers of legal addresses or ask my friends.

Since this year, the situation has become simpler. The company can easily register at the home address of the CEO or founder who owns more than 50% of the share. Thus, there is no need to look for a purchase address, the company can be registered at home.

SP is always registered at the home address.

So now the SP has no special advantages at this point.

Sixth - types of activities of LLC and IE

There are a number of licensed activities that are not allowed to be carried out by individual entrepreneurs.

This is everything related to alcohol, production, wholesale, retail. These are pawnshops, chops, organization gambling, TV and radio broadcasting, work with ammunition, with military equipment, with firearms, space and banking. For these and other licensed species, only a legal entity is suitable.

So, for example, if you want to open a mini radio station, you need a legal entity, whose activities then still need to be licensed.

Seventh - employees in an individual entrepreneur or LLC

If you are planning hired workers, it is easier to deal with them at an LLC: you can hire, fire people, and you do not need to register anything else.

But being an individual entrepreneur should be separately specially registered as an employer in two funds - in the social insurance fund and in pension fund... To register you need:

• fill out an application;
• provide copies of employment contracts;
• go to the fund to submit documents;
• go again to pick up the registration documents and get the registration number.

And at the same time, if you dismiss all employees, registration as an employer is still preserved and you will have to submit zero reporting. And in order to return to a standard individual entrepreneur with a small amount of reporting, it is necessary to deregister as an employer.

Eighth - partnership

If you are alone, open an IP. If you have partners, then those of them who will not be registered as individual entrepreneurs will not have a legal relationship to your business.

For example, decide to do business for three, and one of you will register an individual entrepreneur. This partner will own everything: buyers, suppliers, government orders, won tenders, name, reputation, cash, non-cash money, open passports of transactions (if you have foreign exchange transactions), lease of factories, lease from the city.

The rest of the partners will be absolutely illegal, powerless comrades. The partnership will be held on parole. Unfortunately, after a while, different people begin to interpret the "word of honor" in different ways. Therefore, if you have several partners, open an LLC, register your shares and work strictly according to the law, so that each partner is protected.

Comparative table of differences between LLC and individual entrepreneur

Pros and cons of LLC and IE:

What is more profitable to choose - individual entrepreneur or LLC?

I told about the differences between LLC and individual entrepreneur, which I personally consider important and significant.

If you do not know what to open, open the IP, it is easy and cheap to open, easy to maintain, inexpensive to close. If you suddenly need a legal entity, you can always close the IP and open an LLC. On the contrary, it is more difficult to close a company - it is a large, long and expensive procedure. To summarize:

• to start a business, it is easier to open an individual entrepreneur;
• if it is important to save money, open an IP;
• if a small turnover, for example, 30,000 rubles. per month, open an IP.

If you need to make a serious impression, or you have a large company, risky view activities, if there is personnel, it is better to open an LLC.

Still in doubt? Get our checklist to help you make your decision!

Starting a business in Russia is a topic that anyone who is more or less engaged in something that can be turned into entrepreneurship approaches. And, as usual, the question arises about the legalization of this activity. What is better than an individual entrepreneur or LLC - this question is of interest to any novice entrepreneur who is not versed in jurisprudence and is not at all familiar with accounting subtleties. Let's understand the differences using the example of a table comparing both forms of management.

Types of business activities

A person wondering what is better to open, an individual entrepreneur or an LLC, is probably a novice entrepreneur. Therefore, it is useful to know the meaning of these abbreviations.

LLC, or more simply, an organization is a legal entity that is formed for some economic activity. There is a charter, there are one or several owners, among which the shares of the LLC are distributed. Liability is limited by the charter and, in some cases, to the owners' personal property (in the event of fraud).

IP - de jure it is not a legal entity. This is an individual who has acquired the right to practice entrepreneurial activity, including hiring employees. Responsible for everyone, including personal property, as well as after the closure of the IP.

There are no differences between individual entrepreneurs and LLC

First, let's figure out what the organization and the entrepreneur have in common.

• Tax system for beginners. Basically, they choose either the simplified tax system, where only 6% of the proceeds, or the UNDV, where 15% of the income minus expenses. If we consider OSNO, then organizations will pay taxes on profits, and individual entrepreneurs will pay personal income tax. Not very popular taxation systems, most often require the involvement of a professional accountant. Individual entrepreneurs do not need property tax, LLC on OSNO will have to look for money for this.
• Workers and their rights are all the same. The same deductions, the same labor Relations... There are minor differences in the execution of contracts.
• Agreements with clients - similarly, there is no need to prescribe any specific features.

Differences

It is easier to answer the question of an individual entrepreneur or LLC which will be better with the help of visual visualization. The table of differences will help you - openly negative points are highlighted in red, and in green what is better for a novice businessman.

Important differences

Several minor differences between LLC and individual entrepreneur

Let's sum up

If you have absolutely small business and he gets into the list of IP on the patent - naturally better than him. If the business is large enough, with several employees, and you plan to work with individuals, it can be either an individual entrepreneur or an LLC. If you plan to interact with large companies and government orders - organize an LLC, it is easier for many to work with an organization than with individual entrepreneurs.

It is not so difficult to understand the process of registering an LLC and an individual entrepreneur. The main thing is to consider the types of activities of your business. And decide whether you will save money and go to the tax office on your own, or decide to contact a special legal service.

If you want to entrust the registration process of your organization to professionals, then we recommend the service

As you can see, there is a risk of losing personal property both when registering an individual entrepreneur and when opening an LLC. At the same time, a list of property that cannot be collected has been established (Article of the Civil Code of the Russian Federation):

• the only home;
• clothes, shoes and household items;
• food and money for a total amount not less than the established value of the subsistence minimum;
• other things necessary for life.

However, we believe that a sole proprietor who has incurred debts risks personal property more than an LLC that has gone into negative territory.

Pros of IP

Ease of registration

To become an individual entrepreneur, you only need an application for state registration, a copy of the passport and a receipt for payment of the state duty in the amount of 800 rubles. Plus 1000-1500 rubles - for a notary, if the documents for registration are sent by mail or through a representative. When you visit the tax office in person, you do not need to certify the application with a notary. As a rule, the entire process of registering an individual entrepreneur takes 5 days.

Individual entrepreneurs do not form authorized capital

Another undoubted plus of an individual entrepreneur is the absence of an obligation to form the authorized capital. This means that the size of the initial investment in the business is immediately reduced by at least 10 thousand rubles - this is the minimum authorized capital for an LLC established by law (clause 1 of Art. Federal law dated 08.02.98 No. 14-FZ "On limited liability companies").

SP can freely dispose of proceeds

An entrepreneur can dispose of the money he wants in whatever way he wants and at any time take the proceeds for personal needs. More details about the problem: "". In the case of an LLC, this cannot be done, because the proceeds received are the income of the organization and can be spent only for justified purposes.

Individual entrepreneurs are not required to keep accounting

Individual entrepreneurs conduct accounting only at will. Accordingly, individual entrepreneurs may not draw up financial statements. A simple book of income and expenses is enough for them, which reduces the costs of doing business (subparagraph 1, paragraph 2 of article of the Federal Law No. 402-FZ "On Accounting" dated 06.12.11)

Cons of IP

In addition, entrepreneurs have to pay insurance premiums for themselves, even if the activity was not conducted or did not generate income. But an organization, unlike an individual entrepreneur, pays insurance premiums only from the salaries of its employees. In case of suspension of activities, the organization will be able to save on contributions, because "no salaries - no contributions."

Another serious drawback of doing business in the form of an individual entrepreneur is the inability to carry out certain types of activities, for example, retail sale alcoholic beverages (clause 3.2. Article of the Federal Law of 22.11.95 No. 171-FZ, resolution of the Thirteenth Arbitration Court of Appeal dated 25.08.15 in case No. A56-29242 / 2015).

Pluses LLC

The main advantage of an LLC, as mentioned above, is the limited liability of its participants in the event of bankruptcy of organizations (of course, if it does not come to subsidiary liability). Usually, an LLC participant does not lose more than what he contributed to the authorized capital of the company. In addition, the members of the LLC have the opportunity to sell their shares and go out of business.

Another advantage of an LLC over an individual entrepreneur is that the company can engage in certain types of business that are not available to an individual entrepreneur. This is, for example, the production and sale of alcohol, insurance activities, activity of pawnshops and tour operators.

Cons of LLC

An impressive package of documents is required to register an LLC. In general, these are:

• applicant's passport with a photocopy;
• application for state registration;
• lLC charter in 2 copies;
• decision sole founder or the agreement of founding and minutes of the meeting;
• a document confirming the payment of the state duty (currently the amount of the duty is 4,000 rubles).

In addition, all LLCs are required to keep accounting, that is, draw up transactions in order to reflect each operation in the accounting accounts. At the end of the year, organizations are required to submit financial statements and reports to Rosstat. Large organizations employ entire staff of accountants for this. As a result, they have to spend a lot on salaries, personal income tax and contributions.

It is also worth noting that the organization has much more cash documents that are related to cash turnover.

The founders of an LLC can receive income in the form of dividends. But they can be paid no more often than once a quarter and only if there is a net profit according to accounting data. From dividends, you will have to pay personal income tax in the amount of 13 percent.

Which is better - IP or LLC?

The above differences are enough to understand the difference between an individual entrepreneur and an LLC. Of course, each form of business organization has its own pros and cons. When choosing, you need to take into account the specifics of your future company, its development and profit from activities. If you want to develop a large company, work with large counterparties, attract investors, it is better to register an LLC right away. An individual entrepreneur is perfect for a small business and a beginner startup.

Please note: newly registered entrepreneurs (or their accountants) can use the special accounting program for individual entrepreneurs. This is a web service "", which allows you to keep records of income and expenses, calculate the amount of fixed contributions and taxes under the simplified tax system and UTII, prepare reports and submit it via the Internet. Those individual entrepreneurs can work for free in the program if less than three months have passed since the date of their registration as an entrepreneur to registration in Kontur.Elba.

The subjects who decide to start their own business inevitably face the problem of choosing the organizational and legal form of the future business. For aspiring entrepreneurs in Russia, you can go in two ways: (IP) or (Limited Liability Company). To accept correct solutionthat you can choose from them only with a clear idea of \u200b\u200bthe differences between the first option and the second.

Concepts and legal basis

Individual person Individual entrepreneur is engaged in economic activities in selected areas after registration with local authorities. Responsible for the results of activities with his property.

The legal principles of its functioning are based on the Civil Code of the Russian Federation (Article 23).

LLC is organized by one or more citizens and / or business entities (founders) for implementation after state registration as a legal entity economic activity chosen focus. Responsibility for results is limited by the amount of the authorized capital collected by the founders. The functioning of such a company is based on the Civil Code of the Russian Federation and Law No. 14-FZ of 08.02.1998.

What is the difference between an individual entrepreneur and an LLC

The differences are evident when comparing their defining features.

IP signs

1. IE is created by one participant - natural person, is registered at the address of his registration.
2. Not all types of activity are permitted by law.
3. He has no constituent documents and statutory fund.
4. The individual entrepreneur is responsible for the results of its activity with all its property, bears personal criminal responsibility.
5. All cash belongs to individual entrepreneurs.
6. The state duty for registration is 800 rubles.

OOO signs

1. An LLC is created by one or more participants (up to 50) and can undergo state registration at the place of business in any administrative center of the Russian Federation.
2. Can conduct any areas of activity permitted by law.
3. Constituent documents - Charter. The minimum authorized capital is 10,000 rubles.
4. Participants are responsible for the results of their activities in the amount of their contributions. The founders are not responsible for the risks of the company's obligations. Hired top managers can be held criminally liable.
5. All cash must be deposited at the cashier of the society.
6. Registration fee - 4000 rubles.

The nuances of IP registration

To obtain a certificate of state registration of an individual entrepreneur, the following documents are required:

• statement of the approved form, certified by a notary;
• citizen's passport;
• confirmation of payment of state duty;
• notification of the use of sleep.

Individual entrepreneurs need to choose the areas of their future commercial activities... Receiving legal address and the contribution of material resources to the authorized capital is not necessary.

Features of LLC registration

For registration you will need:

• registration certificate;
• order to appoint a director;
• charter;
• extract from the Unified State Register of Legal Entities.

It is advisable to prepare:

• letter of guarantee on the allocation of premises for a legal address;
• copies of passports of founders and directors;
• acts of valuation and transfer of assets.

It is required to open a bank checking account and make a company seal.

Pros of IP

• no fixed authorized capital;
• small amount of reporting;
• fixed amounts of insurance premiums;
• less fines for violations than for LLC;
• reduced volume of accounting;
• the possibility of switching to preferential taxation;
• simplified registration and lower state fees;
• simple formal closure (liquidation) procedure.

Cons of IP

• not all areas of activity are permitted by law;
• responsibility for risks as a result of activity with all own property, even not appearing in the business process;
• difficulty in business development (lending, attracting investors) due to the "modest" status;
• underdevelopment legislative frameworkprotecting the interests of individual entrepreneurs.

Pluses LLC

• great opportunity to attract investment;
• more comfortable work with contractors (allowing deferrals, installments, etc.);
• the ability to create a brand to increase market awareness;
• availability of a wider range of banking services, increase in loan amounts;
• responsibility for the results of operations applies only to the property of the company.

Cons of LLC

• a longer opening process and a large amount of state fees;
• costs of maintaining a legal address;
• cumbersome reporting;
• increased responsibility for obligations;
• comprehensive financial and business accounting;
• complicated closing procedure.

Salary and lending in everyday life

The most interesting thing in these two forms is not even listed above, but the difference in relation to banks when lending. Since an individual entrepreneur does not have an official salary, in ordinary life it is impossible for him to obtain any consumer loans without any collateral, and the mortgage will be completely inaccessible to him... In the case of an LLC, an entrepreneur can hold a position and receive an official salary.

LLC or individual entrepreneur? What to choose?

Finally, this helpful video will help you make the right choice, which will fully help you understand the differences and choose the right organizational and legal form.

Success in business!