Before starting your own business, you need to decide on the organizational and legal form: register as an individual entrepreneur or a limited liability company. There are pros and cons both there and there. Let's try to figure it out.
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It is easier and cheaper to register an individual entrepreneur. The difference is visible even when comparing the size of the state registration fee: for individual entrepreneurs - 800 rubles, for LLC - 4000 rubles. The package of documents for individual entrepreneurs is much smaller, which means that it is easier and cheaper to prepare them.
Legal address
An individual entrepreneur is registered at the place of residence, that is, if you are from Barnaul and plan to work in Moscow, then as an individual entrepreneur you will register in Barnaul and report in the same city.
Registration of an LLC takes place at the legal address of the head office - a lease agreement or a letter of guarantee is required for this.
Current account and printing
Individual entrepreneurs have the right to work without a current account and seal. For LLC, these are required attributes. This means additional costs.
In addition, the individual entrepreneur has the right to dispose of money (including money in the current account) at his own discretion. With an LLC, withdrawals from the current account can only be for any purpose or the payment of dividends (13% tax) and, as a result, is more costly.
Reporting
It is easier for individual entrepreneurs to report to tax authorities and funds, since initially there are fewer documents.
A responsibility
Here everything is ambiguous. Penalties for individual entrepreneurs, of course, are less, since an individual entrepreneur is equated to an official. The fines for LLCs are much higher, plus in some cases the fine will be issued to both the organization and the official. In fact, in this case, the organization can pay twice for one offense.
However, the individual entrepreneur is responsible for its obligations with all of its property (house, car, summer cottage, TV). LLC only the authorized capital and property of the organization.
Activities
There are some restrictions on the types of activities for individual entrepreneurs. Thus, an individual entrepreneur cannot produce and sell alcohol.
Liquidation
Of course, businesses are built to work and generate profits, but escape routes need to be prepared.
An individual entrepreneur cannot be sold, an LLC - it is possible, you can change the director, founders. It is easier to close an individual entrepreneur: he reported to the tax and funds, paid the state duty, prepared an application and after 5 days the individual entrepreneur was closed. With LLC, everything is more complicated, and if there were turnovers on the account, then cameral inspections by the tax office are possible.
Tax systems USN (simplified), UTII are the same for individual entrepreneurs and LLCs. On OSNO the individual entrepreneur has personal income tax, the LLC has income tax. In addition, the LLC maintains accounting and submits the balance sheet and income statement. IP and LLC are equal in work with employees. They also draw up on a work book, pay personal income tax and pension contributions. OKVED codes for individual entrepreneurs and LLC are common.
