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 in it, 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.
Is it possible to open an online store without registration?
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 legal entity.
That is, an individual entrepreneur can open an online store, but activities without appropriate registration will be illegal.
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 when official registration network sales are optional. 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 an unnecessary piece of furniture on the site, 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 for some reason were not suitable. In such a situation, the seller does not actually make a profit.
Both situations described do not fall within the definition entrepreneurial activity, which means they 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
Exists a whole series reasons why entrepreneurs do not want to formalize their business and prefer to act 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 2019, 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 obtain cash to the treasury, the penalty for shadow entrepreneurs is noted in several regulations at once (articles of the Criminal Code, Tax Code of the Russian Federation, Code of Administrative Offences).
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.
Society with limited liability 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 agencies.
- Registration with the help of 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 website of the Federal Tax Service will help you see examples of document preparation, as well as learn more about the procedure for opening 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 of an online store in retail trade and wholesale. The following options are possible for entrepreneurship in this area:
- general system taxation (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 passport;
- if necessary, a license to operate.
The next thing 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 compulsory 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 expenses for initial stage 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
We released new book"Content marketing in social networks: How to get into your subscribers’ heads and make them fall in love with your brand.”
With the development of Internet technologies, many buyers prefer to “go shopping” without going outside. Indeed, this is very convenient: time and money are saved, since you can choose the cheapest product by quickly browsing through several online display windows. In addition, modern online stores offer a huge selection of goods of any category: from food to purebred dogs and cars...
Supply is growing in line with demand. Therefore, many people open their own online stores, which become over time profitable business. Naturally, entrepreneurs face questions related to legislation and taxation. Let's look at the most popular of them.
Online store - individual entrepreneur or LLC, which is better
Each type has its own characteristics associated with registering and running a business in the near future.
Individual entrepreneur for an online store and its advantages
- Simple and cheaper registration.
- You don't have to hire staff.
- Quickly and easily withdraw cash from your current account.
- Rare inspections by tax authorities.
- Quick liquidation if necessary.
Negative points
- The owner of the business is one person.
- The individual entrepreneur will pay with personal property if disputes arise with creditors.
- Mandatory fixed contributions to funds, even in the absence of income (for 2018 - more than 30 thousand rubles, the amount is growing annually).
- Difficulties in registering trademarks.
Opening an LLC - positive aspects
- There can be from 1 to several founders, you can add up capital.
- In case of bankruptcy, creditors have no rights to the personal property of the founders.
- Various options for sharing profits and attracting new founders.
- If there is no profit, you don’t have to pay taxes.
- The business can be sold and re-registered.
Cons of LLC
- Takes longer to open, needed authorized capital and Charter.
- Difficulties with withdrawing money from the current account.
- Difficulty using cash.
- Payment of dividends is only once every 3 months.
- Mandatory registration and storage of any business decisions.
- Difficulties in liquidating an LLC.
So, which form is best for an online store? For a small to medium-sized store, it is preferable to open an individual entrepreneur, as accounting and reporting are simplified. For large online stores that have large initial capital and plan to immediately hire many employees, it is better to open an LLC. In the future, in our article we will cover issues related to the work of individual entrepreneurs, since usually any business starts with a small store, and only over time it “spreads” to a whole network.
Which taxation system to choose for an individual entrepreneur (online store)
IP on a simplified system
As a rule, online stores operate using the simplified tax system (USNO). Many taxes are replaced by just one; accounting is not necessary. It is necessary to write an application for transition to the simplified tax system within 30 calendar days after opening, open a current account, and printing is not required.
There are two types of simplified tax system: only income is taxed at 6%, and the number of expenses does not matter. And the second option - a 15% tax is imposed on net profit (income minus expenses).
If your online store sells goods, and you can show documents on purchases from suppliers, then it is more advisable to use the second version of the simplified tax system. In this case, you can also write off the cost of delivery, domain registration, hosting and communication costs. If you purchase goods without supporting documents (for example, a store sells Orenburg down scarves that grandmothers knit in villages), then the first option is suitable for you. In addition, in the first option, reporting to the Federal Tax Service is much simpler.
A simplified individual entrepreneur has a number of restrictions for opening (the number of hired personnel and planned profit). If these two indicators exceed the limits established by law, then the individual entrepreneur will be forced to switch to a general taxation system. Such risks can arise only for the largest online stores. Individual entrepreneurs using a simplified system can hire workers, they are required to register them in accordance with the law. At the same time, the number of mandatory reports to the tax office increases and a report to the Social Insurance Fund is added. The employer must register with the Social Insurance Fund and the Pension Fund of Russia without fail. For each employee it is necessary to pay monthly contributions, the amounts of which depend on his wages(13% - personal income tax, 22% in the Pension Fund, 5.6% in the Compulsory Medical Insurance, 2.9% in the Social Insurance Fund and a certain small percentage in the Social Insurance Fund for professional risk).
Individual entrepreneur on a patent or on UTII
According to the law, entrepreneurs working on a patent or UTII can sell products through trading network subject to direct contact with your customers (real retail outlet). Remote sales do not imply this. Therefore, individual entrepreneurs on a patent and UTII are prohibited from working through online sales.
However, there is an interesting addition. It is allowed to sell goods of an individual entrepreneur on a patent through a computer terminal with mandatory delivery to the buyer’s address, while the order and payment must occur in the presence of the buyer in a real store. If, after all, the entrepreneur has registered as a patent holder, then during the inspection by the Federal Tax Service he will be forced to switch to general mode taxation and pay the appropriate taxes for the entire existence of the business on the Internet.
Individual entrepreneur and OSNO (general taxation system)
Working at OSNO is associated with a number of problems.
- Accounting needs to be done.
- You need to pay a lot of taxes, which undermine the fledgling young business.
- Purchase an online cash register and install trading programs.
Thus, a young entrepreneur may not be able to cope with the mandatory expenses.
Can an online store operate without an individual entrepreneur or LLC?
Online trading is almost no different from trading in a regular store. If you want to exist “according to the laws,” then you need to legalize your business.
You can work illegally, but only at the very beginning, when the store has not yet developed and its profit is minimal. Who knows, maybe your business will fail altogether? But if you start working this way, then remember the risk of being held liable if your business comes to the attention of the tax authorities.
In addition, illegal work has a number of other significant disadvantages:
- You cannot open a current account.
- No stamp.
- You cannot sign contracts with wholesale buyers, suppliers, etc., operating legally.
- You will not be able to obtain a license if you decide to engage in trade in pharmaceuticals or other similar goods.
- It will not be possible to install an online cash register on the site to accept online payments.
- It won't be possible to issue accounting documents, checks, invoices, etc.
- You won’t be able to significantly promote your business (without open individual entrepreneurs or LLCs they won’t be accepted into Yandex.Market, etc.).
- Potential clients prefer to make an advance payment to the account of an individual entrepreneur or LLC, but are wary of working with unknown individuals.
If you are still working without registration, but the store is already starting to bring in good profit- it’s better to submit documents and start working legally.
How to register an individual entrepreneur for an online store in 2018 yourself
The cost of registering an entrepreneur is only 800 rubles; you can pay this state fee without leaving your home (on the Federal Tax Service website). The opening is carried out at the place of registration, and a businessman can work in any city in the Russian Federation.
The required documents include an application (filled out in black, in capital block letters), a copy of the passport and TIN. Attention! The signature on the application is placed in the presence of a registrar. If you plan to work on a simplified basis, it is advisable to immediately submit a corresponding application in which you must indicate activity codes (OKVED).
For online trading in 2018, this is 47.91 with subcodes (note that changes are periodically made to the directory). Entrepreneurs are also advised to choose different codes. And if in the future you plan to do something else, for example, go to retail outlets, then additionally select other appropriate codes. You must indicate one of the codes as the main one in your activity.
Documents must be submitted to the tax office or the one-stop service at your place of registration. A receipt for payment of the state fee must be in your hands at the time of submission. The registration period is 3 working days. The inspector accepts the papers, gives you a receipt and after 3 days gives you a notice of application, a registration certificate and a Unified State Register of Entrepreneurs (USRIP) sheet.
Documents can also be sent to the tax office by mail. To do this, it is necessary to notarize a copy of the passport and the signature on the application. The receipt is also included in the envelope. A letter with documents is sent by Russian Post, where an inventory of the attachment is required. You can also submit documents through a representative (a notarized power of attorney for another person and certification of documents is also required) or through a law firm that provides similar services. In this case, you do not visit the tax office, but your costs increase several times.
After receiving the documents, be sure to check them. It happens that careless tax officials make mistakes in the address, full name, or may indicate male instead of female. If an error is detected, notify a specialist. You will receive corrected documents within a certain period of time.
So, after successful registration, feel free to get started and constantly monitor changes in tax legislation. Good luck in your business!
Acquiring the status of an individual entrepreneur gives a citizen the right to legally engage in commercial activities and permanently increase sales volumes. In practice, a businessman can receive his first profits without registering with tax authority, for example, if he carries out one-time orders. Often the question of whether it is necessary to open an individual entrepreneur arises before a citizen in connection with the planned expansion of the chosen direction. The status of an entrepreneur gives the right to officially replenish his personal account in the pension fund, which will subsequently affect the amount of his pension.
What is considered business activity
The main body that supervises the conduct of business in Russian Federation, is tax office. The department checks the legality of accounting, concluding contracts and making payments between business entities. Business activities are classified according to the following criteria:
- · Acquisition of property and material assets for the purpose of further profit-making through the production of new products or resale;
- · Registering an individual entrepreneur is necessary for accounting purposes business transactions, the basis for which are completed transactions;
- · If a citizen has established stable partnerships with counterparties.
In order to identify the employment of citizens as entrepreneurial, a comprehensive assessment is carried out. Usually, if transactions or agreements are of a one-time nature, such relations can be formalized between an organization and an individual as a civil law agreement. In this regard, citizens do not have to register individual entrepreneurs, since this is not a natural process.
What happens if you don’t register as an individual entrepreneur?
Russian legislation provides for 3 categories of liability for illegal business conduct:
- criminal (imposed upon receipt of large-scale income; there may be a fine of 300 thousand rubles or imprisonment);
- administrative (fine from 500 to 2,000 rubles);
- tax (a citizen may be subject to a fine of 5 thousand rubles for late tax registration, or a fine of 20,000 rubles for working without registration. Fines can be imposed at the same time).
Illegal conduct of business activities is regarded by the Russian legislator as a serious offense. First of all, this is tax evasion, which leads to administrative and tax fines. Of course, with sufficient profits, such sanctions are not noticeable and the businessman still does not pay attention to the legal norm and will not open an individual entrepreneur.
Criminal liability comes into force in the event of damage to the state due to concealment of income on a particularly large scale. This rule applies only to cases of running a group business, for example, garage auto repair, when several craftsmen work. If you do not register an individual entrepreneur, there is a risk of receiving a fine of up to 500,000 rubles, and in some cases a term of up to five years in prison.
The same situation exists in the trucking business. According to Article 171, without a license or official registration as an individual entrepreneur, an individual may be involved in financial liability in the amount of three hundred thousand rubles. The amount is already quite significant; it would be easier to pay only 6% on such income under the simplified taxation system. If a citizen continues to conduct systematic activities and does not consider it necessary to open an individual entrepreneur in the case of cargo transportation or the provision of other types of services, the norms of criminal law may be applied to him.
Important: It is possible to avoid a fine for unregistered activities. If a potential entrepreneur did not know that he needed to register an individual entrepreneur, he can get by with a warning. True, when charges are brought, an evidence base is collected and it will not be possible to get away.
In what cases is it necessary to open an individual entrepreneur with the tax authorities?
The legislation does not impose clear requirements for business registration depending on the number of employees or income level. You must notify about the last point if you are already registered in the unified register of entrepreneurs.
Thus, Article 2 of the Civil Code provides a definition according to which the commercial activity of an individual is recognized as engaging in a business with the receipt of systematic profit to the initiator from the use of property, material assets, provision of services and other actions. At the same time, the legislator draws attention to the fact that the activity is carried out at your own peril and risk and must be registered in the prescribed manner.
Example: A freelancer or online store owner needs to open an individual entrepreneur, since such activities will be associated with the systematic generation of income. Therefore, you will still have to register an individual entrepreneur, otherwise sooner or later they may be held accountable: a fine, arrest or suspension from classes a certain type activities.
Is individual entrepreneur registration required when opening an online store?
In this situation, everything is more than logical. A remote platform for selling goods or providing services implies openness and branding. Counterparties will have to issue receipts or invoices of a national standard and conduct activities within the framework of other laws, for example, “On the Protection of Consumer Rights.” Without registering as an individual entrepreneur, you cannot provide cash receipt or warranty card. As a result, the client is not protected and may refuse to purchase goods on such a resource. In addition, registering an individual entrepreneur in the event of opening an online store makes it possible to use services for receiving cashless payment straight to the account.
Important: It is also necessary to register an individual entrepreneur in the case of dropshipping. Despite the fact that such an online store is more of a “showcase” and is considered an intermediary, its owner receives an agent’s fee from each sale. And this is also a systematic income and a type of entrepreneurship.
Is it worth registering an individual entrepreneur when renting out an apartment?
But the question of whether it is necessary to open an individual entrepreneur to rent out an apartment is simple. This is not always justified, since the time to complete the terms of the transaction is minimal. Often, owners of other real estate are official employees of organizations that distrust such employees in the state. It is best to cement such relationships and include income in the declaration. Alternatively, you can arrange a rental on behalf of a good friend or relative who has official registration IP.
Taxation options for individual entrepreneurs
If the business is only at the initial stage, at first experts advise making do with the usual declaration of an individual. True, if you compare the tax burden on an entrepreneur using the simplified system, which is only 6%, then it is much more profitable to withdraw your income from mandatory taxes at a rate of 13% and open an individual entrepreneur. In any case, if a citizen plans to expand his business and cooperate with large organizations, he will need to change his status. Otherwise, no one will simply want to work with him.
On the one hand, many aspiring entrepreneurs are in a hurry to open an individual entrepreneur or LLC. On the other hand, there is a group of beginners who think that opening an individual entrepreneur or a company is a very difficult task. How are things really going?
WHY IS IT NOT NECESSARY TO OPEN AN ENTREPRENEURSHIP IMMEDIATELY AS SOON AS YOU THINK ABOUT YOUR BUSINESS?
Did you know that opening an individual entrepreneur imposes certain obligations on you? In particular, you will have to pay at least 2 thousand rubles to the pension fund every month, regardless of whether you earn this money or not. It seems like a small amount, but in a year it already accumulates about 24 thousand rubles (the exact amount changes every year, usually upward).
Now you need to add here the costs of opening an individual entrepreneur (state fees, stamping). Also, do not forget about the costs of opening a current account, as well as the fees for maintaining it. This can add costs by an average of 6 thousand rubles per year. That is, relatively speaking, you haven’t done anything yet, you haven’t sold anything, but you already have to get 30 thousand rubles a year from somewhere. And not counting the costs of conducting core business.
Thus, if you have not yet decided what exactly you plan to do and are just thinking about your future business, then it is premature to open an individual entrepreneur. In general, the period for registering an individual entrepreneur is a week and the registration procedure itself is quite simple. Therefore, as soon as you need a current account to receive non-cash payments, you can do it in 10 days, along with registering a current account and opening an individual entrepreneur.
HOW TO REGISTER AN IP QUICKLY?
You can register an individual entrepreneur using numerous services. For example, I registered an individual entrepreneur using the moedelo.org service (this is not an advertisement). Literally in one evening I prepared a package of documents and immediately went to the bank and paid the state fee. The next day I went to the tax office with a package of printed and xeroxed documents, submitted them there and a week later I picked up the individual entrepreneur registration certificate. Becoming an individual entrepreneur is no more difficult than applying for a foreign passport or changing your registration. The procedure is quite simple and transparent.
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). Becoming for this individual entrepreneur or opening an LLC is not at all necessary. 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. Much more difficult question with the payment of taxes under this agreement - 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 Pension fund and MHIF.
If the 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 the services under a paid service agreement include the following: training, tutoring, consulting and information services, communication services, medical, veterinary, day care (nanny), audit services, travel 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 agreement
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 institutions, as well as when concluding transactions on behalf of another person. This type The agreement is accompanied by the issuance of a power of attorney to the guarantor.
Unlike an agency agreement, a mandate agreement has short term, the deadline for performing entrusted legal actions. For this transaction to be completed successfully, it is necessary correct design agreement. 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 carry out correct composition 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 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, selling at retail inexpensive goods, you won’t enter into an agreement with every buyer, that’s 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!