Details about the activities of individual entrepreneurs. Individual entrepreneur (IP) IP status in civil proceedings

Status individual entrepreneur determined at the legislative level in accordance with the form of management. It gives the individual entrepreneur rights and obligations that must be adhered to in without fail. Every businessman should know about this parameter.

Status determination

Starting economic activity, subjects inevitably face a choice: to give preference to one or another organizational and legal form of business processes. To do right choice and take the most advantageous position in the way of doing business, it is necessary to carefully consider all the positive and negative aspects that are characteristic of the existing organizational and legal forms.

The civil law status of an individual entrepreneur is defined in two ways, since the considered form of implementation business transactions includes features belonging to different individuals. We are talking about both individuals and business entities of a legal entity.

There are a number of documents that determine the position of the IP. In accordance with the Civil Code of the Russian Federation, it is possible to identify a list of entities related to individuals and engaged in entrepreneurial activities. Individual entrepreneurs include citizens who carry out entrepreneurial activities, while creating a legal entity is not required. After reviewing the Civil Code of the Russian Federation, it becomes clear that, by law, individual entrepreneurs are not included in legal entities. However, it is wrong to rank them as individuals.

The most correct option in the definition legal status an individual entrepreneur is his assignment to a separate group of individuals who are not classified as legal entities. But in connection with the management economic activity for commercial purposes, they are endowed with specific powers that apply to the sphere of entrepreneurship. Outside this area, individual entrepreneurs are ordinary citizens of the state with the status individual.

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Specific features

The legal status of an individual entrepreneur, from a legal point of view, is determined by the peculiarities of origin. An individual entrepreneur is recognized as a participant in economic processes, as he carries out activities of an entrepreneurial nature. The formation of a business entity as such is not carried out.

This duality determines the rights that accompany obtaining IP status, especially the right to receive commercial benefits.

Individual entrepreneurs can only engage in a limited list of activities. It is determined by the relevant authorities state power and excludes, for example, the possibility of trading in alcoholic beverages or providing services related to security activities.

Therefore, before the IP registration procedure, each business entity needs to carefully read the list of prohibited types of manipulations that imply the need to open a company with limited liability. There are restrictions related to the tax policy pursued by the state government, therefore, a thorough check of the actual activity of the subject is carried out.

Obtaining the status of an individual entrepreneur does not mean that the property belonging to the subject will be divided into categories (participating in entrepreneurship and not). In this situation, both pluses and minuses can be identified. For example, it is possible to use a previously acquired item of property for the purpose of making a profit as part of the implementation commercial activities.

However, the negative side is that all property may be subject to seizure if the individual entrepreneur has unfulfilled obligations to creditors.

In this case, the property of the IP will be transferred as a payment of debt, while no records are kept of property that was or was not involved in the process of activity.

Among the obligations of an individual entrepreneur, they highlight the need to make timely payment of tax payments, the amount of which is calculated according to the form. It should be borne in mind that mandatory payments include amounts sent to the Pension Fund. In many regions of Russia, individual entrepreneurs have special position supported by the support of representatives of local governments. This manifests itself in the form of benefits provided for by law. Such measures are carried out by the state for the development of small businesses.

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Positive sides

After the documents confirming the status of an individual entrepreneur are drawn up, the entrepreneur has special rights and obligations. The most important right is that an individual entrepreneur has the opportunity to carry out activities for the purpose of making a profit.

An individual entrepreneur with a civil law status is exempted from the obligation to make tax payments (they are charged on the amount of income received by individuals). To register legal status, collect a row required documents, their number is minimal. The costs associated with the relevant registration are somewhat less than for other forms of law.

For individual entrepreneurs, fines are provided for violation of the provisions defined at the legislative level. However, their size is significantly less than the amount of fines that legal entities have to pay. When creating an IP, each business entity needs to issue an account with which non-cash transactions will be carried out.

Legal entities have the opportunity to dispose of the profits at their discretion. Unlike individual entrepreneurs, persons registered in the status of a limited liability company must wait for the distribution of profits in order to take advantage of the results of the activity.

The advantage of the status of an individual entrepreneur is that he has the right to use his property in a simplified manner. An individual acting as an entrepreneur and his family have the right to use all property without restrictions, even if it is involved in the implementation of commercial activities. This provision is valid until the loss of the status of an individual entrepreneur occurs.

Individual entrepreneurs have the ability to carry out combined activities related to entrepreneurship, other types of non-commercial activities.

Competent conduct of business is inextricably linked with an understanding of the norms of the law. Without this, it is impossible to build a successfully developing company. The choice of organizational legal form depends on business goals. Correct decision for initial stage will contribute to the successful implementation of ideas and plans. There are many common points between the legal statuses of an individual entrepreneur and a legal entity (LE), but there are also enough differences.

To understand the features of the submitted forms, it is necessary to analyze the articles of the law that indicate the procedure and conditions for the implementation of activities. Knowing the basics of regulation and the requirements, it will not be difficult to choose the appropriate option for implementing a business plan. We propose to understand what constitutes the legal status of an individual entrepreneur, as well as its features.

Individual entrepreneur: status features

Individuals who carry out entrepreneurial activities without registering a legal entity, but registered in accordance with the requirements of the law, are called individual entrepreneurs or individual entrepreneurs. They also include heads of peasant farms. The term "individual entrepreneur" was introduced in 1995 (Civil Code, Article 23). The use of the combination Self employed' is considered incorrect.

Due to the peculiarities of the term “individual entrepreneur”, the legal status of an individual entrepreneur is dual in nature. It is simultaneously subject to the norms of legislation both for individuals and for subjects entrepreneurial activity. Thus, a citizen gets the opportunity to conduct business without creating a new economic entity (law dated 08.08.2001 under number 29-FZ). Compared to the rights of a legal entity, they are significantly inferior to him, but against the background of other individuals, they are more extensive.

The civil law status of an individual entrepreneur is defined as legal status IP in the field of business (civil law) relations, which characterizes the principles, guarantees, measures of responsibility and determines their place in the system of civil law relations, taking into account the specifics and characteristics of their activities.

The conduct of any activity not prohibited by law is a characteristic hallmark a citizen who has acquired the status of an individual entrepreneur. Exclusive rights impose certain obligations. With the adoption of the status of an individual entrepreneur, it becomes necessary to pay taxes, mandatory contributions and fees to extra-budgetary funds. But in many cases, the entrepreneur is guided by legislative acts for individuals. So, for example, when using existing vehicles for commercial purposes, he pays taxes to an individual, observing the procedure established for this category.

Defending the rights and interests of individual entrepreneurs in court and features of legal regulation

The scheme of judicial protection of the interests of an individual entrepreneur depends on the basis on which he acted in a given situation. For an individual entrepreneur who is a business entity, it will be carried out in arbitration courts. In the case when the legal relations of an individual entrepreneur are considered from the point of view of a citizen, then the court of general jurisdiction will become the venue for the proceedings. In this regard, it is very important to determine on the basis of what and in what capacity the entrepreneur acts in a particular situation.

Conducting industrial or commercial activities without proper registration is prohibited by law.

Normative legal acts regulating in detail the civil-legal status of individual entrepreneurs are currently absent. Numerous attempts to address this omission have been unsuccessful. The adoption of a single law at the federal level would to some extent simplify the interaction between entrepreneurs and their counterparties, as well as government agencies. Legislative acts existing at the local level are primarily aimed at developing and supporting small businesses. They emphasize the special status of citizens - individual entrepreneurs, but in order to find out the procedure and working conditions, it is necessary to rely on a large number of normative documents.

You can learn about the main methods of protection in the implementation of commercial activities of an individual entrepreneur by reading this article:

Positive aspects of IP status

Individual entrepreneurs have a number of advantages. All positive (and negative) points are easier to consider in terms of comparison with two categories:

• with ordinary citizens
• with other organizational and legal forms.

Citizens who are not registered as individual entrepreneurs are significantly limited in their rights. They are prohibited from performing commercial transactions, which involve making a profit on a regular basis. Violation this requirement may lead to liability, the nature of which - administrative or criminal - will depend on the details of the situation. Such restrictions do not apply to individual entrepreneurs. Even in terms of taxation, an individual entrepreneur has a slight advantage - he does not have to pay personal income tax, which is mandatory for all citizens (payments are made from most of the income received).

Comparing individual entrepreneurs and legal entities, one can note the minimum level of expenses during registration. In addition, for individual entrepreneurs, the volume of necessary documents is much less, there is no obligation to pay authorized capital and registration of a legal address. An entrepreneur can safely conduct business without a seal and a current account. In the tax legislation for individual entrepreneurs, a greater number of tax regimes are fixed, and in the administrative legislation, penalties are provided for much smaller amounts and short time punishment.

An individual entrepreneur has the right to independently decide on what needs to spend the income received in the course of activities. The property of an individual entrepreneur is another significant advantage of status. An individual entrepreneur can use it for both personal and commercial purposes without restrictions. The family members of the entrepreneur also have a similar right.

For individual entrepreneurs, the possibilities of combining this status with the performance of other types of activities are open. So, for example, he can work for hire (except for some positions that are subject to the restriction). An entrepreneur has the right to act as a founder of a legal entity, as well as a participant or founder public organization. As an individual, he can enter into legal relations without restrictions. Thus, the range of possible occupations does not end with commercial activities.

Negative side of the status

Features of the legal status of an individual entrepreneur suggest the presence of not only many advantages, but also a sufficient number of disadvantages. First of all, it is worth noting the mandatory tax deductions and payments to off-budget funds. An individual entrepreneur must submit reports established by law. If the entrepreneur has employees, he performs the functions of a tax agent - transfers mandatory payments from the income of employees (individuals).

IP is subject to a number of restrictions. Certain types are closed to them. public services, including civil (Article 17, subparagraph three of paragraph 1 of the law of July 27, 2004 under the number 79-FZ). A restriction is placed on the activities carried out. Some types are not available to individual entrepreneurs (among them, the production and sale of alcohol, medicines; activities related to the military sphere, etc.). Sometimes legal entities refuse to cooperate with individual entrepreneurs. One of the reasons is the difficulty with VAT (payment and refund).

An important disadvantage of IP status is the (risk) of all available property. In the event of claims arising in the course of activities, IP may be charged cash(including personal property, subject to restrictions established by law) to pay off debts to government agencies or business partners in full size. This fact leads to the fact that an improperly organized business will directly affect the well-being of the entrepreneur. But even for legal entities, there is a possibility of incurring significant material losses of personal property. They bear subsidiary liability (Article 399 of the Civil Code).

Sole proprietorship and marriage contract

It is necessary to pay attention to one more point, which concerns the property and income of the entrepreneur. If the individual entrepreneur is in a civil marriage (officially registered), then everything that is received in the course of activity is subject to division upon divorce. Property, the use of which was carried out only for commercial purposes, is also distributed between the spouses in equal shares. This rule applies even if the status of an entrepreneur was acquired before marriage.

A kind of “insurance” can help in this situation. To prevent unwanted division, it is necessary to conclude a prenuptial agreement, which indicates the current status and procedure for divorce. It is also worth considering that without the consent of the spouse, the individual entrepreneur cannot dispose of real estate acquired in marriage. Even if it is used only for commercial purposes.

Termination of activities

Along with the beginning of the status, its termination has a number of features that must be observed. The entrepreneur has the right to terminate this activity at any time by his own decision. To do this, he needs to fill out an application (form No. P26001) and pay a state duty (160 rubles). After submitting the necessary documents to the tax office, a positive decision is obtained and a mark is entered in the state register on the termination of activities. Except given reason The reason for changing the status of an individual entrepreneur may be:

• businessman's death
• bankruptcy declaration,
• injunction to carry out such activities,
• invalid certificate of an individual entrepreneur (expiration).

The legal status of an individual entrepreneur has many advantages compared to legal entities and ordinary citizens, but there are also some disadvantages. In any case, it cannot be said that an individual entrepreneur is an ideal form for carrying out commercial activities. With the right approach to build successful business possible regardless of the legal form. In the process of work, it is important to take into account the requirements of the law, to have an idea of ​​​​the rights and obligations, and then it will be possible to avoid many problems.

Video - "Comparison of IP and LLC"

Almost every citizen can open an IP. The legal status of an individual entrepreneur has a lot of advantages over such a legal form as a legal entity. After all, the owner of the IP can manage without deep knowledge of accounting and without an accountant. However, even in this seemingly simplest area, there are a lot of pitfalls, so it’s worth getting acquainted with the legal personality of an individual entrepreneur even before contacting the IFTS.

Who can become an entrepreneur

Any adult, capable and respectable citizen of the Russian Federation can receive the coveted status. Provided that he has a residence permit, and the type of future activity is included in the list allowed for this legal form.

Even if the age of majority is still far away, a citizen can try his luck with the consent of his parents (guardians), a court decision on full legal capacity or a copy of the marriage certificate.

The following persons will receive an unequivocal refusal to register as an individual entrepreneur:

• In whose name IP is already opened, since the federal law No. 129 prohibits the opening of two or more individual entrepreneurs by one citizen.
• Persons who were refused by a court decision (Federal Law No. 129, 22.1 art., 4 p.).
• Persons convicted under articles 105.125, 228.245, 126.127, 275.284, 131.135, 205.227, 150.157 of the Criminal Code of the Russian Federation.
• Incapacitated or drug addicted persons.
• Civil servants and employees of municipal institutions.
• Foreigners without a temporary residence permit.

How to get IP status

The only body that is authorized to register an individual entrepreneur is the Federal Tax Service. But even here there are nuances. A citizen must apply to the authority at the place of residence, but not all authorities are endowed with registration powers, for example, in Moscow there is only one such branch - the 46th.

To obtain the legal status of an individual entrepreneur, you need to provide a mandatory package of documents to the registration window of the Federal Tax Service Inspectorate and pay a state duty. Everything is simplified to the limit here, since the IP works alone and does not need a charter designed to divide the rights, duties and shares of capital between the co-founders.

You can send documents to the Federal Tax Service not only in person, but also in other ways:

• by mail with a description of the attachment;
• through a trustee in the presence of a power of attorney certified by a notary;
• in online mode through the FTS website.

Status characteristic

Entrepreneur is simple individual, which has the right to conduct commercial activities without forming a legal entity and is endowed with specific rights and obligations.

The legal personality of an individual entrepreneur is characterized by the fact that the same rules apply to individual entrepreneurs as to individuals, as well as some rules of the Civil Code of the Russian Federation that regulate the activities of legal entities. This duality is main feature civil law status of an individual entrepreneur.

What is IP based on?

As soon as the individual entrepreneur receives the USRIP record sheet (the certificate has not been issued since 2017) and collects all the documents necessary for entrepreneurship, he can start working.

Unlike legal entities, entrepreneurs do not have constituent documents because they are not required. Why? A private businessman acts alone, and after registering an IP, a new commercial facility is not created, even the TIN of the IP and the TIN of an individual are the same number. But the organization can be owned by several founders at once, so they need a charter with a clear distribution of rights, duties and shares of capital. Yes, and TIN organizations are assigned a separate one, in no way connected with the TIN of the founder.

If a legal entity acts according to the charter of an enterprise, then an individual entrepreneur - exclusively based on the very fact of acquiring IP status. In contracts, he must indicate his status and indicate the required details. There is no need to make any clarifications in the form of "acting on the basis of ...".

However, in order for the actions of the entrepreneur to be legal, he must keep in his accounting department and provide, as necessary, all mandatory documents. Both legally important and accounting. Legally important papers include:

• passport of a citizen of the Russian Federation;
• the USRIP record sheet, which has been issued instead of a certificate since 2017;
• certificate of registration, which was issued before 2017;
• certificate of TIN;
• notice of tax registration.

The list of documentation secondary in importance depends on the type of activity and on the specifics of doing business. It may include:

• personnel nomenclature (if the entrepreneur employs workers);
• health and safety briefings (for individual entrepreneurs with staff);
• licenses (when performing specific types of work);
• tax documentation (mandatory for all reports, declarations and other papers).

Rights and benefits

A citizen who has received the legal status of an individual entrepreneur retains the rights of an individual and acquires a number of specific rights:

• He has the right to perform all actions not prohibited by law, the purpose of which is to make a profit.
• The peculiarities of the legal status of an individual entrepreneur allow him to count on protection in arbitration courts if the dispute concerns entrepreneurial activity, or in civil courts if the dispute affects civil law relations.
• An individual entrepreneur has the right to use his personal property and property, for example, a vehicle, for commercial purposes. In this case, the norms of the law for individuals apply to him, that is, he will pay the transport tax as an individual. The same property can be used for personal purposes.
• The status of an individual entrepreneur allows you to apply the patent taxation system, on which there is absolutely no reporting. Plus, taxpayers on special regimes (USN, UTII) may not pay personal income tax and VAT.
• An entrepreneur has the right to join the ranks of employers, but in some special regimes the number of hired employees is limited. For example, only employers who have hired no more than 10 people can switch to PSN.
• A "private trader" has the right to work for hire, enter into legal relations as an individual, become a founder or co-founder of organizations. He can become the director of his own individual entrepreneur, but in this situation he will have to pay insurance premiums for himself both as an individual entrepreneur and as an employee.

Responsibilities

The special legal status of an individual entrepreneur imposes on him obligations and restrictions that apply to individuals and legal entities. Among the most important are:

• Mandatory payment of taxes, the list of which depends on the chosen tax regime.
• Paying contributions to your pension and health insurance. And if the taxpayer hired staff, then contributions for him: on account of a future pension, for medical care and in the FSS (Social Insurance Fund).
• Delivery of certain reports, the type of which depends on the taxation system, and storage of all acts, contracts, legally important papers and other documents within the period established by legislators.
• The impossibility of entering the state, civil and any other service.
• Conducting only those activities that are permitted for individual entrepreneurs and entered in the USRIP at the time of registration.

  To change the main or additional types activities, you need to apply for a change in information in the USRIP.

Another important feature of the civil law status of an individual entrepreneur is that he is liable for unfulfilled obligations with all his property and property even if they are not engaged in business. And he cannot dispose of property acquired during marriage without the consent of the spouse. Of course, if this nuance is not provided for in the marriage contract.

Loss of entrepreneur status

The status of an individual entrepreneur is canceled:

• by personal decision of the businessman;
• in case of death;
• By the tribunal's decision;
• when canceling a permit for temporary/permanent residence of a foreigner in the Russian Federation.

Features of bankruptcy

Business is always risky. Even well-thought-out strategies cannot give a 100% guarantee of stable growth. If debts grow like a snowball, and the entrepreneur’s funds are no longer enough to pay debts to creditors, the arbitration court will rule on the bankruptcy of the individual entrepreneur.

An entrepreneur can apply for bankruptcy:

• the business entity itself;
• creditors, but only those whose requirements are directly related to the activities of this individual entrepreneur;
• authorized body.

If the bankruptcy procedure has already begun, other creditors whose requirements are not related to the activities of the individual entrepreneur, as well as ordinary persons acting as creditors, can also present their claims.

Persons with the status of an individual entrepreneur are liable to the court with all their property. And those that are involved in entrepreneurship, and those that are used only for personal needs.

State of affairs after bankruptcy:

• The court enforces the claims of creditors in a special manner (according to the degree of importance). After making the calculations, for which there were enough funds, the businessman is released from the fulfillment of all remaining obligations related to entrepreneurship. But not from personal requirements.
• At the time of bankruptcy, the state registration of an individual entrepreneur and all licenses issued to a businessman are canceled.
• After bankruptcy, a citizen will not be able to restore his legal status as an individual entrepreneur. It will also not be possible to get it again until 5 years have passed after the completion of the bankruptcy procedure.

Advantages and disadvantages

The dual legal status of an entrepreneur has its advantages and disadvantages, which can help or hinder business development.

Some regions seek to support small businesses and introduce a huge number of benefits, which makes the status of an entrepreneur even more attractive. However, when choosing a form of legal personality, it is necessary to evaluate not only the simplicity and complexity of doing business. Some will be comfortable within the framework of entrepreneurship, and some will feel cramped, so before making a final decision, weigh the pros and cons.

Features of the IP status

Many beginners own business ideas, entrepreneurs are faced with the choice of the organizational and legal form of this business. And as a rule, they immediately face the need to compare the pros and cons various forms organizations, and therefore with the need to determine their potential legal status when choosing one or another option.

The legal status of an individual entrepreneur is not an entirely unambiguous question, since such a form of management as an individual entrepreneur combines the features of both legal entities and individuals.

Sole Proprietor is a natural or legal person

The first question, which is a stumbling block, is the question of whether an individual entrepreneur is an individual or a legal entity. To answer it, you need to refer to Article 23 Civil Code RF, which provides a definition for individuals engaged in entrepreneurial activities. So, an individual entrepreneur is a citizen engaged in entrepreneurial activities without forming a legal entity. Thus, the current law unambiguously excludes individual entrepreneurs from legal entities.

At the same time, it is also impossible to unambiguously attribute individual entrepreneurs to ordinary citizens, since in connection with their participation in entrepreneurial activities they are endowed with specific rights and obligations.

Therefore, it would be more correct to define IP as separate category citizens (individuals) who are not legal entities and persons, but conduct entrepreneurial activities and therefore have special rights and obligations, but only in those areas that are associated with such activities, and in all others they act as ordinary citizens.

Features of the legal status of IP

As for the legal status of an individual entrepreneur, due to the duality of the position of an individual entrepreneur, the nature of his status is also dual - on the one hand, an individual entrepreneur participates in economic activities, but does not form any economic entity. Therefore, the list of rights of a citizen who has received the status of an individual entrepreneur has its own characteristics - these are:

• The most important right that gives the status of an individual entrepreneur is the right to conduct entrepreneurial activities.

  At the same time, there are restrictions on available for IP, for example, an IP cannot be engaged in the sale of alcoholic products or private security practice. Therefore, if you plan to start activities in such areas, you will have to.

• The legal status of an individual entrepreneur does not imply the division of a citizen's property into those participating or not participating in economic activities. This has both advantages (for example, you can use a personal car to generate income) and disadvantages - in case of default on obligations to creditors in payment of debts, it is possible to seize the property of an individual entrepreneur as a natural person. person (of the same car, apartment, land) even if this property was not used in business activities.
• An individual entrepreneur is obliged to pay taxes in a timely manner in accordance with, as well as pay mandatory taxes.
• If there are employees, the individual entrepreneur is obliged to act as their tax and insurance agent and pay for them to the relevant budget funds.
• In cases of litigation against persons having the legal status of an individual entrepreneur, the first thing to do is to determine who the citizen acted at the time of the offense - as an individual entrepreneur or as an individual. Depending on the determination made, the court case is transferred either to arbitration or to a court of general jurisdiction.
• In a number of regions, individual entrepreneurs are supported by local authorities and receive certain benefits aimed at developing small businesses.

Pros and cons of IP status

Naturally, the dual position of IP has both strong and weak sides Therefore, it is important to determine the advantages and disadvantages of the legal status of an individual entrepreneur.

Advantages of IP status

1. Expanded, in comparison with ordinary citizens, the rights and obligations of individual entrepreneurs - the right to conduct commercial activities.
2. Exempted from personal income tax.
3. Minimum costs for registration of IP status, a minimum set of documents.
4. Fines imposed on entrepreneurs are several times less than fines for legal entities.
5. A current account and a seal are not mandatory requirements for an individual entrepreneur.
6. An individual entrepreneur can independently manage the income received from the business (LLCs are forced to wait for the distribution of profits).
7. Facilitated mode of use of property - both the individual entrepreneur and his family members can freely dispose of all available property, without division into those used in commercial activities or not.
8. The ability to combine entrepreneurial activity with any other forms of relationships in society as an individual.

Disadvantages of IP status

1. IP is responsible for its obligations own property, therefore, the potential risks for citizens who are individual entrepreneurs are much higher than, for example, for participants in an LLC.
2. The obligation to pay taxes and submit reports for oneself, as well as the obligatory performance of the function of a tax and insurance agent for hired employees (if any).
3. The obligation to pay a fixed contribution to the FIU, even if there is no actual activity in the reporting period.
4. Restrictions on the types of activities available to individual entrepreneurs.
5. Subjectively, the preferences of many potential business partners are given in favor of legal entities, and not individual entrepreneurs.
6. If an individual entrepreneur starts a divorce process, then all property is divided equally between the spouses (unless otherwise provided by the marriage contract).

Thus, the dual legal status of an individual entrepreneur implies both advantages and disadvantages, which can both contribute to, and vice versa, interfere with the development of your business. The property liability of an individual entrepreneur, which stops many start-up entrepreneurs, in fact, should not be embarrassing if you are going to honestly and carefully conduct the business you have begun, do not try to evade your obligations and reasonably assess the risks from one or another investment option.

The Civil Code of the Russian Federation states that business activity is an activity that a citizen carries out to obtain regular profits (by legal means). It is important that he does it at his own risk.

It is also allowed by law to conduct business without forming a legal entity. For this pass state registration as an individual entrepreneur (hereinafter IP). What is the legal status of an individual entrepreneur? How to become one and what are the features of the organizational and legal form (hereinafter referred to as OPF) of an individual entrepreneur?

Individual entrepreneurs are individuals, but the provisions of the laws of the Russian Federation, which also apply to legal entities, apply to them at the same time. This is due to the fact that people registering as an individual entrepreneur expand their civil rights (they can engage in activities that persons without an individual entrepreneur cannot do), but do not create a new business entity.

The main right of an individual entrepreneur, which he receives at the time of state registration, is to carry out commercial activities (if it is not prohibited by law) and receive profit from it.

You have to pay for everything. And it's not even a figurative expression. As a payment for the opportunity to have a business, the IP transfers taxes to the state treasury. They are withdrawn in the form of duties, contributions (insurance or pension, for example) to funds (PFR, FSS), as well as direct taxes (such as personal income tax).

IP pays taxes as an individual. For example, if in an activity it uses vehicles, then he pays for them exactly as an individual. For legal entities, a similar tax (due to other legal requirements) may be higher.

What is the difference between the legal status of individual entrepreneurs and legal entities? The fact that for the obligations of individual entrepreneurs they are responsible with all their property, including personal ones, while legal entities work only within the framework of the authorized capital.

In terms of litigation, the status of an entrepreneur also differs from legal entities. Individuals resolve their rights and disputes in Arbitration courts and courts of general jurisdiction. In order to better understand the status of an individual entrepreneur, it is necessary to take into account the peculiarities of the civil law status of an individual entrepreneur.

One of them is that in Russia there is no single act that would clearly establish:

1. Who is an IP?
2. What are his responsibilities?
3. What are his rights?

Answers to these questions have to be sought in various articles and provisions of domestic legislation. A single structure of the legal status of an individual entrepreneur at the federal level has not been defined. Yes, in some subjects of the federation there is no such problem. Local deputies took appropriate measures to eliminate it in order to support small businesses.

It is much easier to provide benefits to that category of citizens, the signs of which are clearly defined by law (in this case, this category is individual entrepreneurs).

To find out all the strengths and weaknesses of the IP payer status and decide whether to switch to IP or not, do you need to study in detail a large number of Codes of the Russian Federation? No.

The IP form has advantages and disadvantages over:

• ordinary citizens;
• other OPFs.

Compared to ordinary citizens, sole proprietors have one significant advantage, from which all others are derived - sole proprietors can legally engage in commercial activities, while ordinary citizens cannot. If civilians do business without establishing an individual entrepreneur or legal entity, then they will be held accountable (administrative or even criminal) under the law.

In terms of taxation, entrepreneurs also stand out among ordinary citizens. Individual entrepreneurs do not pay income tax at a rate of 13%. But they must regularly pay contributions to state funds.

AT financial plan activities of individual entrepreneurs are more profitable than the activities of legal entities. It all starts with registration.

It is much easier and cheaper to obtain such a status than to establish an LLC or JSC:

1. It is not necessary for an individual entrepreneur to acquire a seal and current account in a bank (although most often entrepreneurs draw up these attributes).
2. LLCs and JSCs initially invest in registration in the form of authorized capital, individuals are not required to do this.

Entrepreneurs have a wider choice of taxation systems than legal entities.

In case of non-compliance with any requirements of the law, for individual entrepreneurs, sanctions are not as significant as for legal entities (smaller fines, for example).

Individual entrepreneurs can dispose of income at their own discretion: withdraw it from the business, invest it back into the company without reporting. Legal entities cannot do this. The founders of LLC and JSC can withdraw money in the form of dividends, for example. However, they are required to pay the established tax on them.

The situation is similar with the property of an individual entrepreneur. Moreover, members of his family have the right to dispose of this property at their own discretion.

A businessman with the status of an individual entrepreneur can be not only self-employed, but also combine entrepreneurial activities and cooperation with an employer on employment contract.

It was noted above that individual entrepreneurs have the right to act as employees without closing the individual entrepreneur. True, this right does not apply to all positions. A businessman does not have the right to simultaneously be registered as an individual entrepreneur and hold any public position. This is prohibited by law.

Many companies and individuals often prefer legal entities rather than individual entrepreneurs when cooperating. What is it connected with? For many citizens, the status of an LLC or JSC (in any form) is more credible than an individual entrepreneur. There is no compelling rationale for such behavior. It is only generally accepted that LLC and JSC are more reliable than individual entrepreneurs and cooperation with them is more promising, although this is not at all the case.

It is necessary to judge not by the OPF, but by the results of the development of a company or an individual. Unexpectedly, both LLC and individual entrepreneurs can equally terminate their activities.

The disadvantages include the fact that individual entrepreneurs are liable for obligations with all personal property, including those belonging to the family. In this case, legal entities have a more advantageous position.

Family relationships also influence IP. For example, in the event of a divorce (if the terms of the marriage are not agreed in advance), the profits from commercial activities are equally divided between the spouses. At the same time, it does not matter when one of the spouses registered an individual entrepreneur: before marriage or after - everything is considered jointly acquired property.

To avoid such a situation, an individual entrepreneur can draw up a prenuptial agreement, which will clearly define all the conditions for the division of property in the event of a divorce.

In order for a citizen to obtain the status of an individual entrepreneur, it is necessary to apply to the Federal Tax Service and submit the relevant application with the package of documents attached to it.

The deadline for processing documents for individual entrepreneurs in 2019 is three days.

What documents do citizens of Russia need to submit to the Federal Tax Service for registering an individual entrepreneur?

1. Application (form P21001).
2. Receipt of payment of the state duty for registration. Cost: 800 r.
3. Copy of the passport.

For foreign citizens to this list are added:

1. A copy of the TRP / permanent residence document.
2. Certified translation of the passport of the native state.

A similar procedure can be performed (following the procedure) through the website of the Federal Tax Service.

If the applicant initially decided that he would switch from the main tax collection system to another preferential regime, then a notice of the transition must be attached to the documents (in two or three copies).

The simplified taxation system or STS (or “simplified”) is divided into two types: income 6%, income minus expenses 15%. In the first case, the tax is levied in the amount of 6% of the income received, in the second - on the difference between income and expenses in the amount of 15%.

A patent or PSN does not imply the payment of any taxes at all. A patent is a document that is acquired by an individual entrepreneur and gives him the right to engage in certain types of business on preferential terms (they are determined separately by the laws of specific subjects of the federation).

Individual entrepreneurs on a single tax on imputed income or UTII (or "imputation") pay a fixed income, which is established by the regional authorities for each type of business that is allowed on UTII, individually.

With a single agricultural tax (ESKhN), the situation is similar to that with UTII. Only those individual entrepreneurs who receive more than 70% of all profits from the sale of agricultural products (production or sales, for example) have the right to switch to the UAT.

The general taxation system (OSNO) is the most disadvantageous for an entrepreneur, not only in terms of the amount of taxes charged, but also in terms of reporting. In order to competently and correctly report on tax payments, an entrepreneur needs to have an accountant on staff with work experience and significant professional skills. Not every specialist can handle this.

Individual entrepreneurs who use preferential taxation regimes (STS, ESHN, UTII) need to purchase and register cash machine. It is also necessary for owners of online stores and entrepreneurs who are engaged in retail alcohol or products containing more than 15% ethyl alcohol.

In other cases, an individual entrepreneur acquires a check printing machine. This will help automate accounting and record the entrepreneur's cash flow, which is convenient when reporting to the tax authorities.

In addition, receipts give a guarantee to customers that they can return or exchange the goods in case of a defect or for any other reason. However, some items are non-refundable.

For example, the following are non-refundable:

1. Cosmetics and perfumery.
2. Textile products.
3. Household furniture.
4. Auto.
5. Products from precious metals.

After registering a citizen as an individual entrepreneur, a corresponding entry is made in the unified state register of individual entrepreneurs, and the citizen himself registers with the tax authority.

The presence of the legal status of an individual entrepreneur gives a citizen wide opportunities for conducting economic activities:

• trade;
• production;
• services.

The state gives benefits to businessmen with this status. In particular, it allows you to legally engage in business activities in the above business areas. For this, it collects taxes from them.

Some citizens believe that the mandatory payment of taxes can be attributed to the shortcomings of individual entrepreneurship, but this statement can hardly be called fair, because absolutely all citizens of the country pay taxes in one form or another. This is one of the main sources of state income, with the help of which roads, houses are built, various benefits are paid, for example.

It is important for an entrepreneur to learn how to properly manage their income. One of the reasons budding entrepreneurs fail at the start is a waste of money.

Firstly, in order for a business to develop, it is constantly necessary to invest in it, and at the initial stage, this may have to be done “out of one's own pocket”. How to invest from the "pocket" if it is empty? Yes, you can take a loan, but is it reasonable if you can correctly redirect the profits already received without paying interest to the bank? In addition, late payment of debts will not lead to anything good.

Second, what if the investment was received from the state? For example, as part of a small business support program. They cannot be spent at one's own discretion, investments of this kind must be accounted for, and if obligations are not met, severe penalties will follow.

So, it is impossible to be guided by the principle “my profit: I do what I want”. You need to approach everything wisely and make balanced actions - this is the essence of business.

A businessman is responsible to clients, employees, the state:

1. If obligations to the client are not fulfilled, the entrepreneur will miss out on profits.
2. If the obligations to the employee are not fulfilled, then, perhaps, the individual entrepreneur will lose a specialist who could bring him large incomes in the future.
3. If a businessman does not fulfill his obligations to the state, then administrative or even criminal sanctions may be applied to him.

Therefore, starting work as an individual entrepreneur is a serious step that needs to be carefully considered. In some countries, in order to obtain entrepreneurial status, similar to an individual entrepreneur in Russia, it is necessary to undergo a psychological test, the results of which will serve as the basis for granting such status or refusing it.

Unfortunately or fortunately, Russian Federation such testing has not yet been introduced. To obtain the status of an entrepreneur, you only need to meet certain criteria (for example, not have a court ban on doing business), as well as provide a certain package of documents to executive agency dealing with the registration of individuals and legal entities.

The legal status of an individual imposes a number of restrictions on a citizen, increases the level of his responsibility to the state, but at the same time gives him privileges compared to ordinary citizens and other forms of business organization.