A private enterprise is a legal form of ownership in which all property belongs to one or more owners. Civil law of the Russian Federation refers to its varieties: a family business, individual entrepreneurship, the opening of LLC and CJSC.
An individual entrepreneur is an individual who is engaged in entrepreneurship without forming a legal entity. However, an individual entrepreneur must go through the state registration procedure established by the Civil Code. A private entrepreneur is liable for his risks with the property of the enterprise. He is engaged in making a profit solely at his own peril and risk. Employees of state bodies and municipal bodies are not entitled to engage in such activities.
A family business is similar in organizational and legal form to an individual business. It is based on the work and efforts of one family, not one person. The family business is registered in a simplified manner with the tax authorities. Reliefs for family businesses are also provided for in the amount of taxes paid by the company.
LLC stands for "limited liability company". This is an enterprise, the authorized capital of which consists of the shares of one or more participants. If necessary, they are liable for the obligations of the LLC with the amount that they invested in the business. Therefore, a minimum size of the authorized capital must be established for an LLC. The main purpose of its creation is to obtain financial profit. Immediately after the formation of such a commercial enterprise, the legislation requires the creation of a governing body, which usually consists of several founders. This is the most common form of legal entity formation.
A closed joint stock company is also formed by several founders to make a profit. The CJSC issues a certain number of shares, which can only be distributed among the shareholders of this company. The law establishes the maximum possible number of shareholders - there should be no more than fifty.
