home All about YouTube Do I need to open an IP for. Opening an individual entrepreneur: step-by-step instructions. In what cases is it necessary to open an individual entrepreneur with the tax authorities?

Do I need to open an IP for. Opening an individual entrepreneur: step-by-step instructions. In what cases is it necessary to open an individual entrepreneur with the tax authorities?

Hello, dear readers! I have been asked to write this article for a long time, and today I prepared it together with lawyers. Today we will talk about the legal conduct of entrepreneurial activity without registering as an individual entrepreneur or LLC. More precisely, about how to receive income legally without registering as an individual entrepreneur or LLC.

It’s worth saying right away that according to the norms of civil legislation, entrepreneurial activity is an independent activity, the main goal of which is always the systematic receipt of profit. And in this case, or legal. person (LLC) is mandatory.

But, there are other ways in which an individual (you) can make a profit from another person (or from an organization). To do this, it is not at all necessary to become an individual entrepreneur or open an LLC. Without registering a business activity, an individual can carry out ordinary paid transactions - whereas in order to recognize an individual as an individual entrepreneur, he must carry out activities of a special kind (according to the letter of the Ministry of Finance dated September 22, 2006 N 03-05-01-03/125) . So, here are ways to conclude transactions without registering as an individual entrepreneur or LLC.

Work under a contract

Method one - an individual can conclude. For example, an individual (you), by agreement with the customer, performs certain work and delivers it. The customer accepts the final result and pays for it. The issue of paying taxes under this agreement is much more complicated - there are certain nuances here.

In the case where the customer is a legal entity, and the contractor (you) is an individual who is not an individual entrepreneur, when paying remuneration to a person for work performed, the customer (organization) must calculate, withhold and transfer personal income tax at a rate of 13%.

Also, when a contract is concluded by a customer organization and an individual, it is worth considering the fact that some other payments must be made:

Payments for types of social insurance cases (this includes industrial accidents and cases of occupational diseases). Payment of such payments is possible only upon concluding a contract (and only if they are specified in it).
Payments to the Pension Fund and the Compulsory Medical Insurance Fund.

If a contract is concluded between individuals, then you (the contractor) must pay personal income tax for yourself. To do this, you need to fill out and submit it to the tax office.

Contract for paid services

The second method - an individual can conclude a contract. A citizen can perform any service (consulting, medical, legal or other nature), and the customer must subsequently pay for this service.

The difference between a work contract and a paid service agreement is that the result of the first is something tangible (construction or repair work, the manufacture of something), and services under a paid service agreement include the following: training, tutoring, consulting and information services, communication services, medical, veterinary, day care (nanny), audit services, tourist services and others.

Payment of taxes under an agreement for the provision of paid services is similar to the previous agreement - payment of personal income tax on remuneration in the general manner. In general, payments are made to the Pension Fund and the Compulsory Medical Insurance Fund. And similar conditions for independent deductions.

Agency contract

Method three - an individual (you) can conclude . The agent, on behalf of the customer (principal), is engaged in the implementation of certain legal and other actions, and receives appropriate remuneration for the actions performed.

An agency agreement is concluded, for example, when it is necessary to sell a product, while it is necessary to analyze the market, conduct an advertising campaign, and the like. This agreement is more convenient relative to the agency agreement or commission agreement (which we will consider below), since it eliminates the need to conclude additional agreements.

The nuances of concluding an agency agreement with an individual:

Such an agreement involves the completion of not one transaction, but, as a rule, a number of transactions. The agent commits them for a certain period of time.
The agent can act under this agreement within one territory.
Such an agreement may provide for the agent’s refusal to enter into other similar agreements.
An agent can shift his responsibilities to another person (conclude a so-called subagency agreement).

Agency agreement and commission agreement

Another way to earn money for an individual can be a type of agency agreement - commission agreement or commission agreement. You can familiarize yourself with it in more detail and download it. The commission agent concludes transactions with third parties, and the customer of the service (principal) pays a monetary payment to the commission agent (performer) for this. This type of agreement is analogous to an agency agreement. Often, this type of agreement is used to conclude purchase and sale transactions.

Agreements of the same type include . The use of this agreement is possible in cases where the personal participation of the principal is impossible, for example due to illness, business trip, lack of special knowledge, etc.

Such an agreement is concluded for the provision of legal assistance, representation in court, customs authorities, Rosreestr authorities (registration of rights to real estate) and other government agencies, as well as when concluding transactions on behalf of another person. This type of agreement is accompanied by the issuance of a power of attorney to the guarantor.

Unlike an agency agreement, a mandate agreement has a short term, the period for performing entrusted legal actions. For this transaction to be completed successfully, the contract must be properly executed. To avoid misunderstandings, it is necessary to agree on all points of the contract. The agreement is drawn up in two copies. The transfer of funds under this agreement may be accompanied by a receipt.

You can act under this agreement as a realtor, lawyer or other person carrying out any transactions on behalf of your customer.

How should you accept revenue under an agreement between two individuals?

If the services are unlicensed, then the following method can be used. Its essence is that one individual is engaged in independently concluding a contract and personally providing services (work). After receiving payment for the service provided (work performed), the individual is issued a corresponding receipt (certifying that he has received the money).

If you use this method, it is worth considering a number of nuances:

For it to be successfully implemented, it is necessary to correctly draft the contract itself. In any type of contract, all conditions must be clearly stated.
You can take money into your hands only after the client has signed two copies of the contract. One of them must be kept with you. The client must also take a receipt indicating that the money has been received. The receipt should also be in two copies - just in case.

For selling goods

If you are engaged in the sale of goods, then an agency agreement and a commission agreement may also be suitable for you. You can also enter into a purchase and sale agreement. But in this case, you will also need to provide documents for the goods from the manufacturer to confirm its compliance and an invoice if there are several goods.

Upon completion of the transaction, you also pay 13% personal income tax. In this case, this is not profitable, because not all goods have a large markup, and paying 13% of the transaction amount is a lot. It's easier to pay! Therefore, in this case, it is better to register as an individual entrepreneur if the activity is ongoing and there is income. Moreover, when selling inexpensive goods at retail, you will not enter into an agreement with each buyer, this is stupid. Basically, a purchase and sale agreement is used for wholesale shipments, for the sale of equipment, cars, real estate, land and other expensive objects.

Some private traders work without registration and do not pay taxes, but this is before the first complaint from a client or competitor.

Conclusion

Thus, if the compensated transactions carried out by a citizen do not have a systematic nature of generating profit, then you can use the above types of contracts. Otherwise, if you decide to put your activities on stream, then, to avoid this, you should register as an individual entrepreneur or legal entity.

And now in simple terms

In general, if you want to provide any services, you can enter into contracts with clients, which we talked about above, and receive income on their basis legally without registering as an individual entrepreneur or LLC. Mostly they use a contract and a contract for the provision of paid services, and the rest in rare cases.

This is how many private traders work. Most people don’t even pay personal income tax for themselves if they work with individuals and live in peace. But there is a risk here. If they are caught and proven that they carried out many similar transactions and did not pay taxes, they cannot do without a fine. The fines are not large, which is why many people work this way. But I don’t recommend doing this, because you can pay taxes and sleep peacefully.

If you have questions, objections or additions, please write in the comments!

At the moment, future entrepreneurs are not aware of why, before opening their own business, they need to study all the negative tax consequences that may arise in this field of activity. This article provides a detailed answer to the question of whether opening an individual entrepreneur in 2019 is profitable, what risks the taxpayer bears in this case, and how many losses he may receive.

Registration of a taxpayer as an individual entrepreneur in 2019

The very registration of a taxpayer as an individual entrepreneur carries some tax risks, so many future businessmen are thinking about whether it is worth opening an individual entrepreneur.

For example, an individual entrepreneur worked for a company for some time, and then decided to quit. But due to the absence of other counterparties, he registers as an individual entrepreneur and signs an agreement for the provision of certain services with the head of the company in which he previously worked.
However, in such a situation, the businessman does not transfer personal income tax to the budget and independently reduces the amount of insurance contributions.

Businessmen transfer to the budget a fixed amount of insurance premiums for 1 year, regardless of the amount of income received. At the same time, businessmen do not calculate the object and tax base for insurance contributions.

The calculation of the amount of such contributions is made on the basis of the cost of the insurance year (Federal Law of November 28, 2017 No. 212 “On insurance contributions to extra-budgetary funds”).

However, the use of reduced rates of insurance contributions and non-transfer of personal income tax to the budget most often alarms tax authorities.

The tax office classifies a businessman's income as salary. In this case, the court sides with the tax inspectorate.
But when the taxpayer runs an official and well-registered business, tax inspectors do not have the right to accuse the individual entrepreneur of deliberately understating taxes.

A former employee can work as an individual entrepreneur as long as he likes.

In order to prevent conflicts with tax authorities regarding the calculation of salaries instead of bonuses for doing business, individual entrepreneurs need to know several important points:

the entrepreneur must have several potential buyers (more than one) and sign certain contracts with them;
a businessman may not comply with the labor regulations of his former employer. In this case, the individual entrepreneur himself bears the costs associated with the business;
his income and bonuses do not have a fixed value and depend only on the volume of work (services) provided;
Instead of an employment contract, an individual entrepreneur enters into an official contract for the provision of paid services (services) with the former employer.

In such a situation, the former employer is prohibited from transferring workers en masse to individual entrepreneurs. After all, when many former employees of a company become individual entrepreneurs, they make the entire business fictitious.

Choosing an organizational and legal format in 2019

It is impossible to clearly name the advantages and disadvantages of individual entrepreneurs and LLCs, since the evaluation criteria depend on many factors.

The main difference in status between an individual entrepreneur and an LLC is the personal nature of the individual entrepreneur. In this case, there is complete belonging of a certain activity to a certain person. Therefore, if a novice businessman plans to create a consortium or transfer the company to the management of his heirs, then it is certainly worth thinking about creating an LLC, i.e. a structure not connected by inextricable ties with its founder. An LLC can be sold, donated, bequeathed, etc. Moreover, if the founders are completely gone, the LLC will still continue its life.

Weighing property risks

The property of an individual entrepreneur is not divided into production and personal, and, thus, in the event of debts, bankruptcy, etc. The individual entrepreneur will be liable with all the property belonging to him. Closing an individual entrepreneur will not save an entrepreneur from debts to employees, partners and the budget.

Unlike an individual entrepreneur, the founder of an LLC, in accordance with Article 56 of the Civil Code, is not liable for the obligations of the LLC with his personal property. However, LLCs and individual entrepreneurs are gradually leveling out in this regard. Thus, the concept of subsidiary liability of founders is introduced, and Art. 49 of the Tax Code (although this can be attributed to a conflict of laws) provides for the foreclosure of taxes on the personal property of the founders. Thus, in 2019, in terms of debt obligations, neither individual entrepreneurs nor LLCs have advantages over each other.

The tax burden

At first glance, it seems that in terms of taxation, individual entrepreneurs have a number of advantages. But in reality the figures are approximately equal.

Individual entrepreneurs pay mandatory insurance premiums, even if they have no income. In 2019, the minimum amount of contributions reached 32,385 rubles. In case of downtime, the LLC founder does not need to pay insurance premiums for himself. That is, a simple individual entrepreneur will definitely cost more than an LLC. But here the individual entrepreneur gets ahead, since he enjoys the right to tax holidays and additional benefits.

Registration Features

As of 2019, there is no doubt that the conditions for registering an individual entrepreneur are much less labor-intensive and more economical than the same conditions for an LLC. Only the state duty for registration for an individual entrepreneur is five times less than the state duty for an LLC.

To register an individual entrepreneur, the place of registration of the entrepreneur is sufficient. An LLC will require a legal address.

For individual entrepreneurs there are no requirements for authorized capital, while for an LLC it is 10,000 rubles.

Reporting, maintaining production documentation, etc. for individual entrepreneurs is extremely simplified compared to the same positions for LLCs.

Relations with regulatory authorities

Everyone knows that fines for individuals can be tens of times higher than fines for the same offense, but committed by an individual. That is, in terms of authorization, individual entrepreneurs have incomparable advantages.

On-site controls are much more often carried out in relation to LLCs than in relation to individual entrepreneurs.

Field of activity

Of course, the choice between an LLC and an individual entrepreneur largely depends on the chosen field of activity. It is known that there are a number of business restrictions for individual entrepreneurs. For example, an individual entrepreneur does not have the right to trade in alcoholic beverages (except for beer and related products), and does not have the right to provide pawnshop, microfinance, insurance, tourism, etc. services.

How to open: video

Tax consequences of voluntary payment of insurance premiums

Businessmen in most cases insure themselves against unplanned situations such as an employee becoming incapacitated or an employee going on maternity leave.

However, it is not profitable for a businessman to officially pay an employee for sick leave.

The fact is that the monetary compensation that a businessman himself can receive, who on a voluntary basis is engaged in compulsory insurance for cases of temporary disability among employees, is subject to income tax (NDFL).

According to the Ministry of Finance of the Russian Federation, a businessman must transfer personal income tax to the budget. However, in Art. 217 of the Tax Code of the Russian Federation reflects other information: personal income tax is not levied on specific types of income.

In paragraph 1 of Art. 217 of the Tax Code of the Russian Federation states that the following types of income are not subject to personal income tax:

various benefits from the state (except for payments for temporary disability);
unemployment compensation;
maternity payments;
other compensations that are paid on the basis of the current laws of the Russian Federation.

As a result, a businessman, paying voluntary insurance premiums, must transfer personal income tax to the budget.

When an individual entrepreneur does not pay this tax, he sues the inspectorate, which for some reason ends up charging him additional tax payments, penalties and interest. In this regard, an entrepreneur in 2019 should not engage in compulsory insurance on his own initiative.

Selecting a counterparty

Many businessmen are mostly unaware of the risks that arise when choosing a counterparty.

For example, an individual entrepreneur wants to quickly deliver a product, but it is not in stock. In order not to quarrel with the counterparty, the businessman is looking for a seller in the region from whom he buys commercial products for further resale.

As a result, the individual entrepreneur complies with all the terms of the agreement concluded with the counterparty. However, in this case there may be negative tax consequences.

For example, the inspection may admit that a businessman was not careful enough when choosing a counterparty. In this regard, a businessman must choose contractors very carefully.

In order to check a counterparty, an individual entrepreneur must perform the following steps:

The individual entrepreneur must request from the counterparty photocopies of documents bearing his signature and seal (Charter, state registration certificate, etc.);
if in the counterparty’s organization only the manager signs documents (according to the Charter), then the businessman must require the counterparty to present a certified photocopy of the protocol on his appointment and a copy of the order to take office;
if the head of a company signs business papers under a power of attorney, then the businessman must require the counterparty to provide a personally certified photocopy of the power of attorney. The individual entrepreneur also needs to check the powers of this director;
when a company is engaged in certain types of activities that require permission, the individual entrepreneur must request a certified photocopy of the license from the counterparty.

By the way, an individual entrepreneur can check the information provided by the counterparty with real data about the company (legal address, tax identification number, name of the organization) on the website of the Federal Tax Service of the Russian Federation http://www.nalog.ru.

If a counterparty company enters into large transactions, then the individual entrepreneur must study the balance sheet of this organization.

At the same time, according to the current laws of the Russian Federation, the counterparty has the right to refuse to provide an individual entrepreneur with information from the balance sheet and Form No. 2 (report of losses and profits).

Also, when signing large transactions with counterparties, you can check the company’s office, number of employees, availability of a certificate, etc.

Risks of including special conditions in the contract

Any businessman wants to make a big profit during his activities. At the same time, he often provides potential customers with various discount coupons and bonus programs to increase the number of sales. However, there is one “but”.

A businessman who in 2019 applies the simplified tax system (STS), where the tax object is income minus expenses, has the right to attribute the following payments to expenses:

bonuses that the individual entrepreneur pays to clients subject to certain conditions of the contract (for example, if the individual entrepreneur has fulfilled the planned volume of purchases);
discounts, bonus promotions, bonuses for clients.

In paragraph 1 of Art. 346.16 of the Tax Code of the Russian Federation reflects a list of expenses that are taken into account when establishing the object of taxation for businessmen using the simplified tax system (STS). This list of expenses is considered closed.

It should be noted that in the above list, expenses in the form of bonuses, which are paid by the seller to customers after meeting specific contractual conditions (for example, the volume of purchases), are absent.

In this case, the individual entrepreneur does not have the right to include bonuses in expenses that are taken into account when calculating the tax transferred to the budget in connection with the use of the simplified tax system (STS) (letter of the Ministry of Finance of the Russian Federation dated December 7, 2008 No. 03-11-05/27) .

However, at present there are 2 ways to circumvent this prohibition, which can also be used by “simplified” businessmen with the tax object “income”:

a businessman can reduce the price of future deliveries of commercial products in proportion to the bonus that the client received. At the same time, the individual entrepreneur does not increase expenses, but reduces income.

In this case, the price of already sold commercial products will not change and there will be no difficulties taking into account its cost. At the same time, the businessman does not need to make amendments to the initial shipping documents and tax returns;

In 2019, a businessman can re-issue shipping documents. In such a situation, the excess money paid by the client is considered an advance payment.

In Art. 346.17 of the Tax Code of the Russian Federation states that when returning an advance payment to a client, a businessman reduces income, and does not reduce expenses of a company that uses the simplified tax system.

The disadvantages of the above scheme are the following:

1 method of circumventing the ban can only be used if the individual entrepreneur uses it in relation to those clients with whom he will continue to trade in the future;
Method 2 is safer, but requires more mental effort when working with a large number of documents.

As a result, every entrepreneur, when starting his own business, must know not only all the advantages of doing business, but also the risks that may arise due to some features of the application of the Tax Code of the Russian Federation.

After all, what is good for an entrepreneur cannot in all cases be supported by the tax inspectorate and the arbitration court. Therefore, before opening a business, a citizen of the Russian Federation needs to study all the advantages and disadvantages of using one or another special tax regime when making various transactions.

No similar entries found.

Others faded into the shadows. After these changes, many people had a question: is it profitable to open an individual entrepreneur? It remains relevant in 2018, and the outbreak of the economic crisis only added to the doubts.

Profit or loss

Today, entrepreneurs are most concerned about whether running a business will generate income and whether it is profitable to open a private enterprise for a small business. If earlier such a question did not arise for enterprises with low profits, now you need to calculate at what minimum income you can open an individual entrepreneur and not go into the red.

Beginning in 2013, some entrepreneurs registered the cessation of their activities because they managed to earn less in a year than they contributed to the Pension Fund. Of course, such a business makes no sense. Why work? To pay fees and taxes? According to some data, the number of operating individual entrepreneurs by the end of 2015 decreased to the level of 2007. This indicator probably most realistically reflects the existing situation in small and medium-sized businesses.

What to choose: legal entity or individual entrepreneur?

Despite all this, both positive and negative aspects when registering as an individual entrepreneur remain the same.

For example, to open an individual entrepreneur in Russia in 2018, you need to pay less than when registering an LLC, and the procedure itself is much simpler. An individual entrepreneur is not required to maintain accounting records in the absence of hired labor. Sanctions for tax or administrative violations are much softer than for legal entities.

One of the significant disadvantages of running a business as an emergency is that the citizen will have to bear responsibility for his activities with all the property he has. The founders of an LLC (or other similar organization) do not risk their personal capital, but are liable before the law only to the property and authorized capital of the legal entity.

Thus, there are pros and cons to any form of doing business.

Reducing the tax burden for individual entrepreneurs

It should be noted that in 2014, the President of the Russian Federation, by decree, reduced the tax burden on private entrepreneurs. Now you will have to pay about a third less to the Pension Fund (about 20,000 rubles). At the same time, for those whose annual income is more than 300,000 rubles, an additional payment has been introduced - 1 percent of the amount exceeding this level.

Additional changes

In the new year, the state adopted a number of regulatory documents that have a significant impact on business activity:

Today we are in the center of an information revolution, the likes of which have never been known to mankind: the number of network users is 3.7 billion people and is constantly growing. At the same time, the scale of online trading is growing. For example, 90% of villagers in southern China are involved, presenting their products on various online platforms. Online trading is also of interest to Russian entrepreneurs, who often ask whether it is necessary to open an individual entrepreneur for an online store. Let's try to understand this issue.

Selling goods through an online store implies financial benefits, regardless of whether the citizen is engaged in repurchasing goods or running an affiliate program.

According to current legislation, to conduct activities in the field of online trading, you must register as an individual entrepreneur or as a legal entity.

That is, an individual entrepreneur can open an online store, but activities without appropriate registration will be illegal.

Let us note that, according to experts in the field of online sales, about 90% of chain stores engage in trade without notifying the tax authorities. However, if the authorities discover such an illegal store - and it is not at all difficult to find it - the person who opened it will be held accountable before the law.

Newcomers to the business world are also interested in whether it is necessary to register an individual entrepreneur for the VKontakte online store, and the answer to this question is clear: if a group on the site created with a social network account begins to consistently generate profits and performs the functions of an online store, then registration is simply necessary.

Selling online without registration

You should know that there are situations where formal registration of network sales is not necessary. For example, if a person sells goods or services on the Internet a couple of times a year, but these actions are not systematic: say, they put on the site an unnecessary piece of furniture, an old TV, or a boring coat.

Another example would be the sale of goods at prices below cost or purchase prices in cases where the purchased goods were not suitable for some reason. In such a situation, the seller does not actually make a profit.

Both situations described do not fall under the definition of entrepreneurial activity, and therefore do not require official registration. However, an online store is a completely different case; it is just systematic sales at a price favorable to the seller.

Reasons entrepreneurs do not want to register

There are a number of reasons why entrepreneurs do not want to formalize their business and prefer to operate in the shadows.

The main reason, as at any time, is taxes and fees, which may well make up a significant part of the profit of a new businessman. In 2018, a businessman will have to donate at least 6% of profits to the state treasury, and sometimes more, depending on the tax regime.

A good reason is also the reluctance to keep records, prepare and submit reports to various funds, tax and supervisory authorities.

Consequences of doing business without registration

Since the state is interested in the official registration of any case in order to receive funds into the treasury, penalties for shadow entrepreneurs are noted in several regulations (articles of the Criminal Code, Tax Code of the Russian Federation, Code of Administrative Offenses).

According to the law, an online store without an individual entrepreneur, LLC or other method of organizing a business will entail the following sanctions:

a fine of 500-2,000 rubles for lack of registration with the tax authorities;
a fine of 2,000-2,500 rubles and confiscation of goods for lack of a license to sell (for example, tobacco products);
punishment from 3,000 rubles fine to 6 months of arrest if there is income in large and especially large amounts (from 1.5 to 6 million rubles);
a fine of up to 10% of total income (but not more than 40 thousand rubles) if the entrepreneur’s profit was recorded in the absence of registration.

It follows from this that losses in the event of illegal activities may exceed the income from its conduct. It is much more profitable for an entrepreneur to officially register his business than to hide from the consequences later.

Choosing a form of ownership

It can be difficult for a novice entrepreneur to choose what is better for an online store – an individual entrepreneur or an LLC. It is definitely difficult to answer this, since both forms of management have their advantages and disadvantages.

An individual entrepreneur is an individual who can work without employees and independently manage revenue. Special tax regimes simplify reporting and reduce the tax burden.

A limited liability company is an organization - a legal entity - to open which you need authorized capital and at least 1 officially registered employee. As a founder, the owner of the business will receive income in the form of dividends no more often than once a quarter.

IP is easier to register and requires less costs. An LLC sounds more reputable; clients, banks and suppliers are more willing to cooperate with a legal entity. However, economists advise beginners in business to start with an individual entrepreneur, and then, if desired, change the form of business.

How to register an individual entrepreneur for an online store

To register an individual entrepreneurship, you need to go through the appropriate registration procedure with the Federal Tax Service at your place of registration or place of residence. There are several ways to open an individual business:

Self-registration. From the point of view of experts, this is the preferred method, since it allows the future businessman to understand the essence of the work of government bodies.
Registration through intermediaries. Often they are law firms or multifunctional centers.
Online registration. This method is especially suitable for confident PC users who value their time.

Procedure for submitting documents

In order to register an individual entrepreneur for an online store with the Federal Tax Service, you will have to go through the necessary procedures and submit certain documents.

In particular, to register an individual entrepreneur you need:

The official will help you see examples of document preparation, as well as learn more about the procedure for starting a business.

Choosing a tax system for an online store

An important problem that beginning businessmen face is the choice of taxation regime, and therefore they are often interested in which taxation is better for an individual entrepreneur in an online store in retail and wholesale. The following options are possible for entrepreneurship in this area:
general taxation system (OSNO);
simplified system (STS);
patent system.

Another convenient option is to obtain a patent for an individual entrepreneur’s online store for a period of up to 12 months.

Document flow for individual entrepreneurs in an online store

Opening a current account is the first problem that an individual entrepreneur will face when he has just opened his online store and started receiving orders. Covering the issue briefly, we note that the main securities in this case are:
USRIP record sheet;
copy of the passport;
if necessary, a license to operate.

The next thing that the future owner of an online store needs to pay attention to is tax reporting, the volume of which depends on the chosen taxation regime.

Any individual entrepreneur is required to register with the Pension Fund and pay contributions there, which means mandatory submission of documents to the Pension Fund. Contributions to this fund are not tied to the tax system.

However, there are also certain benefits, for example, for people who have opened an online store, but are also caring for a child under 1.5 years old or a disabled person.

The owner of an online store is required to pay fees and report to insurance funds, such as the mandatory medical insurance funds (FFOMS) and social insurance funds (FSS).

Costs for registering an individual entrepreneur

Today, the cost of opening an individual entrepreneur varies from 800 to 5,000 rubles. It all depends on what additional services the entrepreneur is going to use.

Only the state duty is a mandatory payment. Everything else, be it money to open an account, a notarized power of attorney, or funds to make a seal, is optional.

What are the advantages of IP

Having figured out how to open an individual entrepreneur for an online store, let’s look at the advantages of this form of business. First of all, individual entrepreneurship does not require large financial costs at the initial stage of doing business.

Individual entrepreneurs are allowed simplified accounting. And most importantly, the entrepreneur can freely manage the funds in his bank account. This way of doing business is indeed preferable for new entrepreneurs who are planning to open their own online store.

How to open an online store: Video

If you are planning to open a business, then the first thing you need to do is decide on the form of ownership. The most common forms of ownership are individual entrepreneurs and LLCs. They are very different and when registering a company, you cannot make a mistake with the choice.

Status Features

The main difference between an individual entrepreneur and other forms of organization is that an individual entrepreneur is still an individual, while LLCs, joint-stock companies and institutions are legal entities. He has no separate property, and therefore, in the event of bankruptcy, he risks everything.

It is worth mentioning that IPE (individual private entrepreneur) and PBOYUL (unincorporated entrepreneur) are the same as individual entrepreneurs, with the only difference being that these terms were used before the abbreviation was introduced.

Advantages of an individual entrepreneur

Of course, individual entrepreneurs have a number of advantages, primarily associated with simplification of taxation and registration systems. Let's look at the main ones.

Simplified registration procedure. Compared to an individual entrepreneur, you do not need a large package of documents. The Tax Service should only provide a passport, an application for registration, and a receipt for payment of the state duty (its amount is 800 rubles).
Simplified taxation. When registering an individual entrepreneur, you have the right to choose the taxation system, and, as a rule, it is somewhat simpler than if it were a legal entity.
Individual entrepreneurs are exempt from accounting activities. This significantly simplifies the activities of individual entrepreneurs and also reduces costs. Of course, there must be some semblance of accounting, for example, a Book of Income and Expenses.
The individual entrepreneur takes all the profit received for himself., while the founder of the LLC receives.
Minimum registration costs. You need to pay only 800 rubles to become an individual entrepreneur, and if documents are submitted electronically, then the future individual entrepreneur is generally exempt from the obligation to pay state fees (Article 333.35 of the Tax Code of the Russian Federation).

Flaws

Unfortunately, despite a sufficient number of advantages, there are also disadvantages.

The most significant disadvantage is that The individual entrepreneur is liable for obligations with all his property, with the exception of that property which, in accordance with Art. 24 of the Civil Code of the Russian Federation cannot be recovered.
Individual entrepreneurs sometimes do not have the right to choose the area of activity that interests them. Thus, he can sell alcoholic beverages only if he has the appropriate license.
It is necessary to pay contributions to extra-budgetary funds regardless of whether the entrepreneur makes a profit or not. Contributions can be suspended only when the individual entrepreneur self-liquidates.
Severe funding constraint. If you want an investor to become one of the founders, you will need to form a legal entity.
The individual entrepreneur will not be able to sell the business, because it bears the name of an individual entrepreneur. You can sell property, but not the rights and obligations to conduct business as an individual entrepreneur.
If we use the general taxation system, then losses from previous years cannot be taken into account when calculating personal income tax.
If a simplified taxation system is used, then counterparties will not be able to offset output VAT.
Customer mistrust. As a rule, consumers trust organizations registered as LLCs more.
If you plan to take part in procurement, then registering as an individual entrepreneur is highly undesirable, because individual entrepreneurs are rarely allowed to participate in tenders.

Assessing the status of your own business and risks

Any aspiring businessman should study legal aspects of doing business associated with the chosen form of ownership. Thus, entrepreneurs who have chosen an individual entrepreneur as their form of ownership do not lose anything from an individual, but simply acquire new obligations and opportunities. They have the right to hire workers, but they must also register with extra-budgetary bodies and pay dues regularly.

An individual entrepreneur, like a private individual, may be limited in his rights by a court decision. However, legal status does not in any way deprive a person of his rights as an individual.

If you are in doubt between choosing an individual entrepreneur and an LLC, then it is worth considering their differences more clearly.

	IP	OOO
Taxes	Profits can be withdrawn immediately after receiving them and spent as you wish. It is not taken into account anywhere and no tax is paid on it.	You need to submit reports. The founders pay 13% on profits to the Federal Tax Service. Withdrawals of money from the current account must be reflected in the accounts.
Contributions to extra-budgetary funds	Regardless of whether the individual entrepreneur makes a profit or not, he is obliged to pay contributions to the Pension Fund (about 23 thousand rubles + 1% of the amount of income over 300 thousand rubles).	Deductions are made for all employees, the terms of deductions are strict.
Accounting	An individual entrepreneur does not have to keep accounting records.	All legal entities are required to keep accounting records and submit reports.
Initial expenses	The state fee for registering an individual entrepreneur is only 800 rubles. Registration of an individual entrepreneur does not require a charter, an authorized capital, or a seal.	When opening an individual entrepreneur, a charter and authorized capital are required (minimum 10 thousand rubles), the state duty is 5 thousand rubles. You also need to make a seal and open a current account.
What is the responsibility for obligations?	All property, except that which the state cannot take away, according to the laws.	The founders of the LLC are liable for obligations according to their share in the authorized capital.
Prestige	Some organizations refuse to work with individual entrepreneurs because they consider them less reliable. Also, state-owned enterprises have restrictions on the creation of government orders (individual entrepreneurs are sometimes not allowed to participate in government procurement).	Compared to an individual entrepreneur, a legal entity looks more reputable and it is easier for it to find partners.
Patent tax system	Only an individual entrepreneur can choose a patent taxation system, and it is very beneficial for small businesses.	Organizations cannot choose a patent taxation system.
Registration	Registering a business is easier because... You need to provide a smaller package of documents, the amount of state duty is not so high.	Only the state fee for registering an LLC is 4,000 rubles, moreover, you will have to create an authorized capital (10,000 rubles minimum). The package of documents includes the Charter and other constituent documents required to create a business.
How to close	IP cannot be re-registered to another person or sold. The cost of liquidation is only 160 rubles.	The LLC can be sold and re-registered. The state fee for closing an LLC is 800 rubles.

So, what is easier and more profitable? Individual entrepreneur is a simpler organizational form; it is better for a novice entrepreneur to start with it. An individual entrepreneur can always be “converted” into an LLC. Of course, it still depends on the scale.

It is better to open a small business with an individual entrepreneur. If you are going to immediately make a large-scale production, then it is better to choose an LLC. Also, a lot depends on the scope of the business: for selling alcohol you need to choose an LLC, for the rest an individual entrepreneur is suitable. If you are going to work with VAT, then the option with an LLC is preferable; if without VAT, then it is better to create an individual entrepreneur.

Is it worth opening an individual entrepreneur in 2020?

To understand whether it is worth opening an individual entrepreneur in 2020, let's look at the main changes that will occur with this organizational form.

Firstly, starting from 2018, contributions to extra-budgetary funds are taken under its control by the Federal Tax Service, therefore, the methodology and method of paying contributions to extra-budgetary funds is subject to fundamental changes.

Moreover, there is information that even the scheme for calculating contributions will change, which implies some increase. Good news for those who planned to conduct their activities as an individual entrepreneur with the UTII tax regime. The validity of UTII has been extended until 2021. Since 2018, the declaration for this tax system has changed.

What are the pros and cons of individual entrepreneurs and LLCs relative to each other, you will learn from this video.