IE is today the most popular form of business organization, which is associated with the relatively simplicity of tax and management accounting. Another reason is the more favorable tax regime created for individual entrepreneurs.
Most novice entrepreneurs, when making a choice between opening an individual entrepreneur and an LLC, prefer the first form. The main reasons are:
- a simpler registration procedure;
- lack of authorized capital;
- more loyal amounts of fines for violations of the law;
- less amount of reporting that must be submitted to the tax authorities;
- Availability of benefits for insurance premiums for individual entrepreneurs.
What types of individual entrepreneurs in Russia can be distinguished
All entrepreneurs can be classified according to a number of criteria:
1. By size (turnover):
- large business (with revenues of 1.5 billion rubles per year);
- medium-sized business (with revenues from 75 million rubles);
- small business (with revenues from 1.5 million rubles);
- micro-business (with revenue of up to 1.5 million rubles).
2. According to the applicable tax regime:
- SP on the simplified tax system;
- SP on OSNO;
- SP on UTII and PSN.
3. By type of activity:
- individual entrepreneurs engaged in retail trade;
- individual entrepreneurs providing services to the population;
- individual entrepreneurs engaged in the production of goods, etc.
The most popular types of individual entrepreneurs by turnover
Most of the individual entrepreneurs belong to small and micro-businesses, with a turnover of up to 75 million rubles. in year. However, as of the beginning of 2014, a significant number of such entrepreneurs have closed. This was due to the growth of insurance premiums to the Pension Fund of the Russian Federation to almost 36 thousand rubles. For many individual entrepreneurs, whose incomes often did not exceed 100 thousand rubles. per year, this amount turned out to be unbearable.
FTS statistics indicate that in the first half of 2013 more than 500 thousand individual entrepreneurs were closed
Many entrepreneurs initially register as individual entrepreneurs, and later, when the business increases its turnover, they reorganize into LLCs.
The main reasons are that it is more difficult for an individual entrepreneur to expand and develop a business. Many counterparties and credit organizations mistrust entrepreneurs and do not want to work with them.
The most popular types of individual entrepreneurs from the point of view of the tax regime
Most individual entrepreneurs use UTII, as well as STS.
UTII and STS are the most loyal tax regimes. With UTII, the income actually received does not matter, taxpayers pay tax at a fixed rate based on the number of employees or the size of the retail space. The cost of a patent is also independent of the actual profit and is determined by the type of activity.
The simplified tax system is a special tax regime that is more beneficial than the OSNO. It replaces the main types of taxes (profit, VAT, personal income tax) with a single one. His rate is 6% of all income or 15% of the difference between income and expenses. Also, this mode is distinguished by simpler accounting.
OSNO IP is rarely used. As a rule, it is used provided that the majority of its business partners are on OSNO.
The most popular types of individual entrepreneurs by type of activity
Most of the individual entrepreneurs belong to small businesses, therefore their main activity is retail trade, as well as the provision of consumer services to the population (for example, housing repairs).
In Russia, there is a restriction on the conduct of certain types of IP activities. Among them - entrepreneurship in the banking sector, retail trade in alcohol (except beer), insurance, tour operator activities.
In serious production, individual entrepreneurs are not often found. This is due to the fact that such a business requires the attraction of borrowed funds, and loans to individual entrepreneurs are issued by banks very reluctantly. The sole proprietors also do not run the risk of taking on large loan obligations, because they are liable to the bank with their own property even after closing.
