Individual entrepreneurship is becoming more and more popular every day. It’s difficult to say whether this is due to people’s reluctance to work for someone else or whether it’s all about income, which is often higher for entrepreneurs. At the same time, not everyone who enters the business has enough knowledge for a long-term and, importantly, profitable presence in the market. For example, how does the property right of individual entrepreneurs differ from the same right of ordinary individuals? What are the features of this right? If you find it difficult to answer, we will expand our knowledge.
Definition of property rights
It would be most logical to start with what property rights are in principle (individual entrepreneur, not individual entrepreneur - it does not matter). According to the definition, property rights are a set of legal norms that fix the ownership of any property by an individual or legal entity; in addition, property rights determine the powers that these persons have and protect their interests in the event of an encroachment on this very property.
The owner can dispose of his property independently, without subordination to other persons.
How to obtain property rights?
Property rights are acquired through original or derivative means. In the first case, a person independently makes an item of property, acquires things abandoned by their previous owner (for example, picks them up on the street), collects fruits or berries (everything collected is the property of the one who collected it, of course, if he did not violate the current legislation ). In the case of derivative methods, a person either acquires ownership rights (by purchasing its object) or receives this right as an inheritance. The right of ownership ceases to be valid with the disappearance of its object (for example, apples will no longer be the property of the owner of the garden if all the trees were cut down), if the rights to the property were transferred to another person in in the prescribed manner, and also if this is required by current legislation (the property is seized to pay a debt, the conditions of its operation are violated (applies only to objects of historical and cultural value that are privately owned), the need for requisition in wartime, etc.).
Who is an individual entrepreneur and how to become one?
But how can one talk about what the private property of individual entrepreneurs is without having a clue about who these people are? Let's start with the fact that they surprisingly combine the features of an individual and a legal entity. According to the law, an individual entrepreneur remains an individual, but at the same time he receives income from his business activities as a legal entity.
In order to register as individual entrepreneur, you need to select a field of activity (naturally, from the list proposed by the All-Russian Classifier of Types of Economic Activities), prepare a statement certified by a notary, and copies of documents. After this, you need to register with the Interregional Inspectorate of the Federal Tax Service and receive constituent documents. Next, you will have to obtain permission for certain types of activities (that is, a newly minted entrepreneur is going to open a retail outlet, he must collect another package of documents before doing this). The last stage becoming an individual entrepreneur is making your own stamp and opening a bank account (in the case when financial transactions within the enterprise are carried out not only in cash).
Now that the individual entrepreneur is officially registered, we can proceed to such an issue as the private property rights of individual entrepreneurs.
What is property?
Moving on to such an issue as the property rights of individual entrepreneurs in civil law, it is necessary to clarify what, in principle, falls into the category of property.
An individual entrepreneur may own the buildings and structures within which he carries out his activities, as well as the equipment that he uses (the above can be rented, in which case the entrepreneur has temporary ownership). Earned money, company shares, securities - all this also falls into the category of property. Any objects intellectual property- trademarks, know-how, designs - all this is also protected by the Civil Code. The produced goods also belong to the individual entrepreneur until the moment he transfers the rights to it through sale.
Features of acquisition for individual entrepreneurs
The peculiarities of the property rights of individual entrepreneurs appear already at the stage of its acquisition. De jure, an individual entrepreneur is an individual who simply receives income from his activities. De facto, this corresponds to what a legal entity usually does.
But given that the legal status of an individual entrepreneur does not change, he can receive property by inheritance, using them later to make a profit.
Unique property management
The property rights of individual entrepreneurs in civil law have their own characteristics when it comes to managing this property. Despite the fact that individuals, to whom individual entrepreneurs still belong, have the right to dispose of their property as they see fit, in the case of entrepreneurs this rule has minor reservations. The primary task of an individual entrepreneur is to pay taxes and make all obligatory payments (pay installments on loans and borrowings, pay for the services of suppliers, pay wages, and so on). If there are not enough funds for this, then the businessman will be forced to sell or mortgage his property in order to pay off his debts. He can freely dispose only of the property that remains after all the necessary payments.
Bankruptcy procedure
But what awaits the property of individual entrepreneurs if its owner cannot pay the bills? Unfortunately, in this case, ownership will have its limitations: the entrepreneur’s personal property cannot be used to pay off the debts of his business. In this case, all business property (that which is used in the process of activity) will be confiscated.
The only way to save your business is in in this case- declare your bankruptcy. The problem is that this practice is not very common, so there is no corresponding legislative framework. An individual entrepreneur is declared bankrupt if he has exhausted all possibilities to repay his debts, but was unable to do so. While the enterprise is considered bankrupt, absolutely all personal property of the individual entrepreneur can be confiscated in payment (the exception is housing, if it remains the only place of residence, personal belongings (not counting jewelry), food, as well as cash, the amount of which is less than the subsistence level). As soon as the debts are paid, the entrepreneur can resume his activities.
How are the neighbors? Features of Belarus
It is worth mentioning separately the property rights of individual entrepreneurs in the Republic of Belarus; it also has its own characteristics. An individual entrepreneur can claim the right to lease or purchase state property - this occurs in many countries. But in Belarus, if an object of republican property is in poor condition, it is put up for auction with a starting price of one basic value (that’s a little more than ten dollars).
In the case when an individual entrepreneur offers an interesting solution to the state investment project, this property is transferred to him absolutely free of charge.
Litigation
Like any other right, the ownership right of individual entrepreneurs can be challenged in judicial procedure- here the situation is identical to claims against individuals.
Typically, claims are filed when an owner is unable to dispose of his property because his rights are being ignored by another party. The practice of filing a counterclaim to recognize the plaintiff’s claims as illegal is quite common - so the one who is initially considered a violator tries to protect himself for the future. Besides, statement of claim may relate to demands to remove restrictions on the disposal of property: for example, to remove a seized house from the inventory report. The third type of such claims is aimed at acquiring property rights: the applicant wants to appropriate an ownerless thing, legalize a building for which the appropriate permit has not been obtained.
Features of legal proceedings
If the court hearing is about a derivative right to property, all its previous owners also participate in the consideration, and the transfer procedure will be studied until a person is found whose ownership right does not raise any doubts. It is worth separately noting that the property rights of individual entrepreneurs are regulated by the Civil Code (Civil Code) - this greatly distinguishes such lawsuits from others related, for example, to the refusal to register property rights.
It is also worth noting that decisions to recognize property rights do not have a statute of limitations, so even if this right was recognized many years ago, and the documents confirming this fact were lost, the right can still be restored, also through the court.
Violation of property rights
How is someone who violates the property rights of individual entrepreneurs punished? The violator may incur administrative or civil liability. The reason for the punishment may be the unauthorized occupation of a plot of land owned by an individual entrepreneur, the construction of various structures on it - these are only crimes relating to land law. But, remembering what relates to property, the list of violations can include the theft of the latest technical developments and production samples, the destruction of securities or money, and the sale of goods produced by an individual entrepreneur without his knowledge - this list can be continued almost endlessly. What distinguishes crimes against property is that most often they are committed intentionally, with the aim of causing damage to the copyright holder.
Types of property crimes
There are three types of encroachment on the property rights of individual entrepreneurs: theft (any illegal possession of shares, in cash, products of production, and so on), causing property damage (any damage caused to equipment, buildings, manufactured products and other objects of property) and disinterested encroachment on property (this group includes random crimes in which there really was no malice, for example, criminally negligent attitude towards someone else’s property).
Naturally, depending on the severity of the crime, different punishments are expected, from civil to very real criminal liability.
Conclusion
If we talk about what the property right of individual entrepreneurs is, briefly, it can be noted that this is a symbiosis of the rights of an individual and a legal entity. By its definition, an individual entrepreneur is still closer to the first concept, but the fact that he receives profit from economic activity allows us to indirectly attribute it to legal entities, although there are many differences between them. At the same time, individual entrepreneurs have a number of features in their property rights. The differences relate to the disposal of property, the procedure for obtaining it, and so on. Sometimes businessmen, defending their interests, are forced to resort to judicial assistance (and lawsuits regarding the rights of ownership of any property have their own characteristics), and sometimes, in defending it, condemn violators to actual prison terms (though this is an extreme measure of punishment, in most cases, violators get off with compensation and fines). The right to property is one of the basic human rights, and this should never be forgotten. It doesn’t matter whether this person is an individual entrepreneur or not, his property is inviolable.
An individual entrepreneur has personal property, as well as property used by him in entrepreneurial activity. However, this property is not legally demarcated in any way. Consequently, some uncertainty arises. A citizen is liable for his obligations with all the property belonging to him, with the exception of property that cannot be foreclosed on (Article 24 of the Civil Code of the Russian Federation).
It follows that, regardless of whether the entrepreneur uses the property in business activities or it is his personal property, he is liable for his obligations related to business activities with all his property.
In this significant difference individual entrepreneurship from doing business through organizations. For example, an individual is the sole founder of a company with limited liability(LLC) and at the same time his general director.
Here the individual will be the management body and the sole executive body OOO. That is, it is the individual who is both the founder and general director of the LLC who will actually carry out business activities on behalf of the LLC.
However, in this case, the subject of entrepreneurial activity will be an LLC. At the same time, according to general rule the founder of the LLC is not liable for the obligations of the LLC (Clause 3, Article 56 of the Civil Code of the Russian Federation). And an LLC is liable for its obligations with all the property belonging to it (Clause 1, Article 56 of the Civil Code of the Russian Federation).
In contrast to such detailed delimitation, the property of an entrepreneur is legally indivisible. And if everything is clear with the obligations - the entrepreneur is responsible for them with all the property belonging to him, then with the taxation of individual transactions related, in particular, to the sale of property, not everything is clear.
An example is the following situation.
Example:
The entrepreneur sold his real estate (hotel building), which had been in his ownership for less than 3 years. At the same time, the entrepreneur carries out the following types of activities: retail trade, hotel activities, sale of real estate.
The purchase and sale agreement does not state that the individual is an entrepreneur. The entrepreneur applies a simplified taxation system. What tax should he pay on income received from the sale of real estate?
Let's consider possible options taxation:
1. Single tax within the framework of the simplified tax system.
In accordance with Art. 346.15 Taxpayers of the Russian Federation when determining the object of taxation single tax When applying the simplified tax system, income from sales is taken into account, determined in accordance with Art. 249 of the Tax Code of the Russian Federation.
Sales income is recognized as proceeds from the sale of goods (works, services) both of one's own production and those previously acquired, and proceeds from the sale of property rights (clause 1 of Article 249 of the Tax Code of the Russian Federation).
And since the hotel was used by the entrepreneur for the purposes and within the framework of business activities subject to a single tax when applying the simplified tax system, income received from its sale should also be subject to a single tax.
A similar opinion is shared by the Russian Ministry of Finance (see letter No. 03-05-01-05/140) and the tax authorities (see letters of the Russian Ministry of Taxes No. 04-3-01/398, No. SA-6-22/657).
However, on this situation You can look at it from a different angle.
2. Personal income tax.
A simplified taxation system in accordance with the provisions of Articles 346.11 and 346.12 of the Tax Code of the Russian Federation is applied to business activities carried out by an entrepreneur.
Since the property of an individual entrepreneur is not legally demarcated, the entrepreneur can dispose of the property he owns not only within the framework of entrepreneurial activity, but also as personal property belonging to him by right of ownership.
In this case, the entrepreneur, when concluding a real estate purchase and sale agreement, was not called an individual entrepreneur, but an individual.
From this we can conclude that the entrepreneur sold the hotel as an individual, and not as an entrepreneur.
The judicial decision of the issue depends on how the court interprets the essence of the relationship.
For example, the FAS Moscow District took into account the status of the seller. Since the entrepreneur in such a situation in the property purchase and sale agreement acted as simply individual, the court decided that the income received under this agreement is subject to personal income tax (see Resolution N KA-A41/12570-05).
Note that in this situation it may be beneficial to tax the income received from the sale of a hotel with personal income tax.
When selling real estate by an entrepreneur outside the framework of his business activities, he has the right to apply a property tax deduction in the amount of 125,000 rubles, since the property was owned for less than three years (subclause 1, clause 1, article 220 of the Tax Code of the Russian Federation). Instead of using a tax deduction, the taxpayer has the right to reduce the amount of income received by the amount of actually incurred and documented expenses associated with the acquisition of this property.
That is, if an entrepreneur sells real estate at the same price as he purchased, he is actually exempt from paying personal income tax. However, in this situation it will be necessary to prove that the sale of the hotel was carried out outside the framework of entrepreneurial activity. After all, Art. 220 of the Tax Code of the Russian Federation contains provisions according to which a property tax deduction is not provided for income received by an individual entrepreneur from the sale of property in connection with his business activities.
And yet, according to the author, in this situation, income received from the sale of a hotel should be subject to a single tax when applying the simplified tax system on the basis that the hotel was used by the entrepreneur for business purposes and its sale is also a separate type of business activity.
Now, if the entrepreneurial activity of an individual entrepreneur were not connected with hotel business and with the sale of his own real estate, then the entrepreneur would have to pay personal income tax on the income received from the sale of real estate.
Property tax for individuals
Individuals who own residential buildings, apartments, dachas, garages and other buildings, premises and structures are payers of property tax for individuals (Articles 1, 2 of Law of the Russian Federation N 2003-1 “On taxes on property of individuals”).
At the same time, by virtue of clause 3 of Art. 346.11 of the Tax Code of the Russian Federation, “simplified people” do not have to pay this tax in relation to the property that is used to carry out business activities. There are similar norms in the chapters of the Tax Code of the Russian Federation on UTII and the simplified tax system (clause 3 of Article 346.1, clause 4 of Article 346.26 of the Tax Code of the Russian Federation).
“The use of a simplified taxation system by individual entrepreneurs provides for their exemption from the obligation to pay... property tax for individuals (in relation to property used for business activities)..." (see paragraph 3 of Article 346.11 of the Tax Code of the Russian Federation).
Thus, individual entrepreneurs who use special regimes and are the owners of property used to carry out their business activities do not pay personal property tax on such property.
And with regard to property not used in business activities, such individual entrepreneurs are recognized as payers of property tax for individuals on a general basis.
To obtain the right to exemption from payment of property tax for individuals, individual entrepreneurs submit applications to the tax authorities at the place of business activity (location of the real estate used in business activity) (in free form) on their exemption from fulfilling the obligation of payers of property tax for individuals in relation to the real estate objects specified in the applications.
At the same time, to confirm the fact of the use of real estate belonging to the taxpayer in business activities, any documents available to the individual entrepreneur containing the necessary information can be presented (see letter of the Federal Tax Service of Russia for Moscow No. 18-12/3/6066).
The legally secured property rights of individual entrepreneurs are regulated by Civil Law Russian Federation. A person carrying out legal activities may have various means of production. The law does not prohibit the use of hired labor to work with them. In case of disputes, the individual entrepreneur bears financial liability. By decision of a judicial authority, the property of an entrepreneur can be alienated within the framework of administrative or criminal proceedings.
Legal aspects of the concept
Unlike individuals who use movable and immovable property for personal reasons, individual entrepreneurs use it for the purpose of extracting material benefits, creating consumer or production benefits. This fact is cornerstone in understanding the property relations of an entrepreneur with the state and business partners. Within the existing regulatory framework, the following forms of ownership of individual entrepreneurs are allowed:
- production and economic complex as a whole;
- construction for economic purposes;
- equipment;
- vehicle;
- materials;
- raw materials;
- rental property used for collective or individual farming;
- income received;
- production results;
- residential buildings;
- other.
The following types of activity serve as the basis for the emergence of property rights: individual, labor, personal or subsidiary farming, family or small enterprise.
Despite the fact that the law allows individual entrepreneurs to work in various fields, only a few of them gained great popularity. We are talking about consumer services for the population, retail trade in food and non-food products, catering. This is explained by several factors. The key here is the simplicity of organization and registration of the license. In 2nd place is the opportunity to start making a profit within 1-2 months from the moment you start working.
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Paperwork
When registering ownership rights to an individual entrepreneur, the emphasis is on the rules Civil law. There are 2 key points to highlight here. If we are talking about a created thing or material value, then all ownership rights to it belong by default to the author. This element can be used by another person for a fee or free of charge. This fact is fixed in the lease or sale and purchase agreement of the property.
In the event of the death of the owner, the rights to the objects created by him are inherited. If the deceased did not leave a legally formalized last will, then property rights are transferred, within the framework of current legislation, to blood relatives, a spouse. In some cases, the rights to the private property of an individual entrepreneur are transferred to his legal successor.
The second point is property that is jointly owned by all participants in the enterprise.
In the event of any judicial or administrative proceedings, the participants in the collective farm bear equal responsibility.
If one of the shareholders leaves the business, goes to jail or dies, then his share is subject to one of the following procedures in accordance with the established procedure:
- connects with parts of other participants;
- passes within the framework of the will left to another person;
- confiscated as a result of a court order;
- other.
Making a decision in each case requires careful consideration of the available documents. Sometimes the procedure is delayed due to disputes between participants in the enterprise or due to claims by creditors.
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Determining the type of property
Before submitting documents for registration of property rights, it is necessary to correctly determine the form of ownership according to OKFS for individual entrepreneurs. The all-Russian classifier is used to compile and record the tax base. It provides the following options:
- state;
- Russian;
- federal;
- property of the subject;
- state corporations;
- owned by stateless persons;
- property of a foreign legal entity;
- property of another state;
- municipal;
- property of religious organizations;
- property of consumer cooperation;
- property of political or public associations;
- federal-foreign ownership;
- international and foreign property;
- union ownership;
- mixed;
- other.
At the time of registration of rights, it is necessary to carefully indicate the classification of this property. Subsequently, the conditions and rules for working with it are largely determined by the OKFS. If the applicant has any difficulties with this issue, he can always seek advice from a lawyer.
Individual entrepreneur (IP)(legacy private entrepreneur (PE), PBOYUL until 2005) is an individual registered as an entrepreneur without forming a legal entity, but actually possessing many rights legal entities. The rules of the civil code regulating the activities of legal entities apply to individual entrepreneurs, except in cases where separate articles of laws or legal acts are prescribed for entrepreneurs.()
Due to some legal limitations (it is impossible to appoint full-fledged directors to branches in the first place), an individual entrepreneur is almost always a micro-business or small business.
according to the Code of Administrative Offenses
Fine from 500 to 2000 rubles
In case of gross violations or when working without a license - up to 8,000 rubles. And, it is possible to suspend activities for up to 90 days.
From RUB 0.9 million for three years, and the amount of arrears exceeds 10 percent of the tax payable;
From 2.7 million rubles.
Fine from 100 thousand to 300 thousand rubles. or in the amount of the culprit’s salary for 1-2 years;
Forced labor for up to 2 years);
Arrest for up to 6 months;
Imprisonment for up to 1 year
If the individual entrepreneur fully pays the amounts of arrears (taxes) and penalties, as well as the amount of the fine, then he is exempt from criminal prosecution (but only if this is his first such charge) (Article 198, paragraph 3 of the Criminal Code)
Evasion of taxes (fees) on an especially large scale (Article 198, paragraph 2. (b) of the Criminal Code)
From 4.5 million rubles. for three years, and the amount of arrears exceeds 20 percent of the tax payable;
From 30.5 million rubles.
Fine from 200 thousand to 500 thousand rubles. or in the amount of the culprit’s salary for 1.5-3 years;
Forced labor for up to 3 years;
Imprisonment for up to 3 years
Fine
If the amounts for criminal prosecution are not reached, then there will only be a fine.
Non-payment or incomplete payment of taxes (fees)
1. Non-payment or incomplete payment of tax (fee) amounts as a result of understatement of the tax base, other incorrect calculation of tax (fee) or other unlawful actions (inaction) entails a fine in the amount of 20 percent of the unpaid amount of tax (fee).
3. The acts provided for in paragraph 1 of this article, committed intentionally, entail a fine in the amount of 40 percent of the unpaid amount of tax (fee). (Article 122 of the Tax Code)
Penalty
If you were just late in payment (but did not provide false information), then there will be penalties.
Penalties are the same for everyone (1/300 times key rate Central Bank per day of the amount of non-payment) and now amount to about 10% per annum (which is not very much in my opinion, taking into account the fact that banks give loans at a minimum of 17-20%). You can count them.
Licenses
Some types of activities an individual entrepreneur can only engage in after receiving a license, or permissions. Licensed activities of individual entrepreneurs include: pharmaceutical, private investigation, transportation of goods and passengers by rail, sea, air, as well as others.
An individual entrepreneur cannot engage in closed types of activities. These types of activities include the development and/or sale of military products, trafficking in narcotic drugs, poisons, etc. Since 2006, the production and sale of alcoholic beverages has also been prohibited. An individual entrepreneur cannot engage in: alcohol production, wholesale and retail trade alcohol (except for beer and beer-containing products); insurance (i.e. be an insurer); activities of banks, investment funds, non-state pension funds and pawnshops; tour operator activities (travel agency is possible); production and repair of aviation and military equipment, ammunition, pyrotechnics; production of medicines (sales possible) and some others.
Differences from legal entities
- The state fee for registering individual entrepreneurs is 5 times less. In general, the registration procedure is much simpler and fewer documents are required.
- An individual entrepreneur does not need a charter and authorized capital, but he is liable for his obligations with all his property.
- An entrepreneur is not an organization. It is impossible for an individual entrepreneur to appoint a full and responsible director.
- has no IP cash discipline and can manage the funds in the account as desired. Also, the entrepreneur makes business decisions without recording them. This does not apply to working with cash registers and BSO.
- An individual entrepreneur registers a business only in his name, in contrast to legal entities, where registration of two or more founders is possible. Individual entrepreneurship cannot be sold or re-registered.
- U employee An individual entrepreneur has fewer rights than a mercenary in an organization. And although the Labor Code equates organizations and entrepreneurs in almost all respects, there are still exceptions. For example, when an organization is liquidated, the mercenary is required to pay compensation. When closing an individual entrepreneur, such an obligation exists only if it is specified in the employment contract.
Appointment of director
It is legally impossible to appoint a director in an individual entrepreneur. The individual entrepreneur will always be the main manager. However, you can issue a power of attorney to conclude transactions (clause 1 of Article 182 of the Civil Code of the Russian Federation). Since July 1, 2014, it has been legislatively established for individual entrepreneurs to transfer the right to sign an invoice to third parties. Declarations could always be submitted through representatives.
All this, however, does not make the people to whom certain powers are delegated directors. A large legislative framework on rights and responsibilities has been developed for directors of organizations. In the case of an individual entrepreneur, one way or another, he himself is responsible under the contract, and with all his property he himself is responsible for any other actions of third parties by proxy. Therefore, issuing such powers of attorney is risky.
Registration
State registration of an individual entrepreneur carried out by the Federal Tax Service of the Russian Federation. The entrepreneur is registered with the district tax office at the place of registration, in Moscow - MI Federal Tax Service of the Russian Federation No. 46 for Moscow.
Individual entrepreneurs can be
- adult, capable citizens of the Russian Federation
- minor citizens of the Russian Federation (from 16 years of age, with the consent of parents, guardians; married; a court or guardianship authority has made a decision on legal capacity)
- foreign citizens living in the Russian Federation
OKVED codes for individual entrepreneurs are the same as for legal entities
Necessary documents for registration of an individual entrepreneur:
- Application for state registration individual entrepreneur (1 copy). Sheet B of form P21001 must be filled out by the tax office and given to you.
- A copy of the Taxpayer Identification Number.
- A copy of your passport with registration on one page.
- Receipt for payment of the state fee for registration of an individual entrepreneur (800 rubles).
- Application for switching to the simplified tax system (If you need to switch).
An application for registration of individual entrepreneurs and other documents can be prepared online in a free service.
Within 5 days you will be registered as an individual entrepreneur or you will receive a refusal.
You must be given the following documents:
1) Certificate of state registration of an individual as an individual entrepreneur (OGRN IP)
2) Extract from the Unified State Register of Individual Entrepreneurs (USRIP)
After registration
After registering an individual entrepreneur it is necessary to register with pension fund and the Federal Compulsory Medical Insurance Fund, obtain statistics codes.
Also necessary, but optional for an entrepreneur, is opening a current account, making a seal, registering a cash register, and registering with Rospotrebnadzor.
Taxes
IP pays fixed payment to the pension fund for the year, 2019 - 36,238 rubles + 1% of income over 300,000 rubles, 2018 - 32,385 rubles + 1% of income over 300,000 rubles. Fixed fee paid regardless of income, even with zero income. To calculate the amount, use the IP fixed payment calculator. There are also KBK and calculation details.
An individual entrepreneur can apply tax schemes: simplified tax system (simplified), UTII (imputed tax) or PSN (patent). The first three are called special modes and are used in 90% of cases, because they are preferential and simpler. The transition to any regime occurs voluntarily, upon application; if you do not write applications, then OSNO (general taxation system) will remain by default.
Taxation of an individual entrepreneur almost the same as for legal entities, but instead of income tax, personal income tax is paid (under OSNO). Another difference is that only entrepreneurs can use PSN. Also, individual entrepreneurs do not pay 13% on personal profits in the form of dividends.
An entrepreneur has never been obliged to keep accounting records (chart of accounts, etc.) and submit financial statements (this only includes a balance sheet and a financial performance statement). This does not exclude the obligation to keep tax records: declarations of the simplified tax system, 3-NDFL, UTII, KUDIR, etc.
An application for the simplified tax system and other documents can be prepared online in a free service.
Inexpensive programs for individual entrepreneurs include those with the ability to submit reports via the Internet. 500 rubles/month. Its main advantage is ease of use and automation of all processes.
Help
Credit
It is more difficult for an individual entrepreneur to get a loan from a bank than for a legal entity. Many banks also give mortgages with difficulty or require guarantors.
- An individual entrepreneur does not keep accounting records and it is more difficult for him to prove his financial solvency. Yes, there is tax accounting, but profit is not allocated there. Patent and UTII are especially opaque in this matter; these systems do not even record income. The simplified tax system “Income” is also unclear, because it is not clear how many expenses there are. The simplified tax system "Income-Expenditures", Unified Agricultural Tax and OSNO most clearly reflect the real state of the individual entrepreneur's business (there is an accounting of income and expenses), but unfortunately these systems are used less frequently.
- The individual entrepreneur himself (as opposed to the organization) cannot act as collateral in the bank. After all, he is an individual. The property of an individual can be collateral, but this is legally more complicated than collateral from an organization.
- An entrepreneur is one person - a person. When issuing a loan, the bank must take into account that this person can get sick, leave, die, get tired and decide to live in the country, giving up everything, etc. And if in an organization you can change the director and founders with the click of a finger, then in this case an individual entrepreneur can just close it and terminate the loan agreement or go to court. IP cannot be re-registered.
If a business loan is denied, then you can try to take out a consumer loan as an individual, without even disclosing your plans to spend money. Consumer loans usually have big bets, but not always. Especially if the client can provide collateral or has a salary card with this bank.
Subsidy and support
In our country, hundreds of foundations (state and not only) provide consultations, subsidies, and preferential loans for individual entrepreneurs. Different regions have different programs and help centers (you need to search). .
Rice. Number of individual entrepreneurs per 10,000 population
Experience
Pension experience
If the entrepreneur pays everything regularly to the Pension Fund, then the pension period runs from the moment of state registration until the closure of the individual entrepreneur, regardless of income.
Pension
According to current legislation, an individual entrepreneur will receive a minimum pension, regardless of how many contributions to the Pension Fund he pays.
The country is undergoing almost continuous pension reform and therefore it is not possible to accurately determine the size of the pension.
Since 2016, if a pensioner has the status of an individual entrepreneur, then his pension will not be indexed.
Insurance experience
The insurance period for the Social Insurance Fund only applies if the entrepreneur voluntarily pays contributions to the social insurance (FSS).
Difference from employees
The Labor Code does not apply to the individual entrepreneur himself. It is accepted only for hired workers. An individual entrepreneur, unlike a director, is not a mercenary.
Theoretically, an individual entrepreneur can hire himself, set a salary and make an entry in the work book. In this case, he will have all the rights of an employee. But it is not recommended to do this, because... then you will have to pay all salary taxes.
Only a female entrepreneur can receive maternity leave and only under the condition of voluntary social insurance. .
Any businessman, regardless of gender, can receive an allowance of up to one and a half. Either in RUSZN or in the FSS.
Individual entrepreneurs are not entitled to leave. Because he has no concept of working time or rest time and the production calendar also does not apply to him.
Sick leave is granted only to those who voluntarily insure themselves with the Social Insurance Fund. Calculated based on the minimum wage, the amount is insignificant, so in social insurance it makes sense only for mothers on maternity leave.
Closing
Liquidation of an individual entrepreneur is an incorrect term. An entrepreneur cannot be liquidated without violating the Criminal Code.
Closing an individual entrepreneur occurs in the following cases:
- in connection with the adoption of a decision by an individual entrepreneur to terminate activities;
- in connection with the death of a person registered as an individual entrepreneur;
- by court decision: forcibly
- in connection with the entry into force of a court verdict of deprivation of the right to engage in entrepreneurial activity;
- in connection with the cancellation of a document (overdue) confirming the right of this person to reside in Russia;
- in connection with a court decision to declare an individual entrepreneur insolvent (bankrupt).
Databases on all individual entrepreneurs
Website Contour.Focus
Partially free Contour.Focus The most convenient search. Just enter any number, last name, title. Only here you can find out OKPO and even accounting information. Some information is hidden.
Extract from the Unified State Register of Individual Entrepreneurs on the Federal Tax Service website
For free Federal Tax Service database Unified State Register of Individual Entrepreneurs (OGRNIP, OKVED, Pension Fund number, etc.). Search by: OGRNIP/TIN or full name and region of residence (patronymic name does not have to be entered).
Bailiff Service
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With help, you can keep tax records on the simplified tax system and UTII, generate payment slips, 4-FSS, Unified Settlement, SZV-M, submit any reports via the Internet, etc. (from 325 rubles/month). 30 days free. Upon first payment. For newly created individual entrepreneurs now (free).
Question and answer
Is it possible to register using temporary registration?
Registration is carried out at the address of permanent residence. To what is indicated in the passport. But you can send documents by mail. According to the law, it is possible to register an individual entrepreneur at the address of temporary registration at the place of stay, ONLY if there is no permanent registration in the passport (provided that it is more than six months old). You can conduct business in any city in the Russian Federation, regardless of the place of registration.
Can an individual entrepreneur register himself for work and make an entry in his employment record?
An entrepreneur is not considered an employee and does not make an entry in his employment record. Theoretically, he can apply for a job himself, but this is his personal decision. Then he must conclude with himself employment contract, make an entry in work book and pay contributions as for an employee. This is unprofitable and makes no sense.
Can an individual entrepreneur have a name?
An entrepreneur can choose any name for free that does not directly conflict with the registered one - for example, Adidas, Sberbank, etc. The documents and the sign on the door should still have the full name of the individual entrepreneur. He can also register the name (register a trademark): this costs more than 30 thousand rubles.
Is it possible to work?
Can. Moreover, you don’t have to tell them at work that you have your own business. This does not affect taxes and fees in any way. Taxes and fees to the Pension Fund must be paid - both as an individual entrepreneur and as a mercenary, in full.
Is it possible to register two individual entrepreneurs?
An individual entrepreneur is just the status of an individual. It is impossible to simultaneously become an individual entrepreneur twice (to obtain this status if you already have it). There is always one TIN.
What are the benefits?
There are no benefits in entrepreneurship for people with disabilities and other benefit categories.
Some commercial organizations They also offer their own discounts and promotions. Online accounting Elba for newly created individual entrepreneurs is now free for the first year.
As noted above, since an individual entrepreneur is a natural person, he owns property that he uses for commercial purposes and property used for personal purposes. And although it is not actually divided, legally the property of an entrepreneur, used by him to make a profit, is separated for the purpose of calculating certain taxes. For example, in the professional tax deduction when calculating personal income tax, you can only include expenses associated with property used in business activities. The situation is the same with expenses under the simplified tax system and unified agricultural tax.
An individual entrepreneur must independently determine whether, for tax purposes, property should be classified as used in business activities or not. But in practice this can be quite difficult to do. For example, a car or a computer can be used simultaneously both for personal purposes and for making a profit. And the costs of such property are a reason for constant disputes tax authorities with entrepreneurs. This is especially true for passenger cars and the costs associated with them.
Another problem related to the property of an individual entrepreneur is related to the Family Code. As you know, property acquired during marriage belongs to both spouses (unless otherwise provided by the marriage contract). For property used by a citizen for the purpose of carrying out entrepreneurial activities, there is no exception from the joint ownership regime.
Considering that the ownership, use and disposal of common property is carried out by mutual consent of the spouses, it should be recognized that a married entrepreneur is somewhat limited in the use of his property for business purposes. Yes, for disposal real estate and making transactions requiring notarization and (or) registration, an individual entrepreneur must obtain the notarized consent of the other spouse. Surprises can also await an entrepreneur during a divorce, because ex-spouse has the right to half of all property. And, for example, individual entrepreneur, presenter trading activities in a store, may lose half of the goods, half of the store’s area, etc.
It should be taken into account that spouses have the right to change statutory regime of joint ownership (Article 34 of the Family Code) and establish a regime of joint, shared or separate ownership of certain types of property or all property. Thus, a marriage contract can be used to determine the legal regime of the property of an individual entrepreneur, including in matters of his property liability.