After registering an individual entrepreneur in tax office you not only get the right to conduct business, i.e. study entrepreneurial activity, but also responsibilities, the first of which are to submit reports and pay insurance premiums for yourself. In addition to these key responsibilities of each individual entrepreneur, there are a number of nuances that you should know about so as not to run into fines in the first month of your official activity. Especially for this article, we have selected seven important issues that an IT freelancer needs to solve immediately after state registration.

And for those who have opened an LLC, we have prepared: 10 things that must be done after registering an LLC

1. Choose the right tax system

If, when you registered as an individual entrepreneur, you did not submit notifications about the transition to a simplified taxation system, then you will need to decide on the taxation system within the specified period of time after the date of registration.

The taxation system is the procedure for calculating and paying taxes. Each system has its own rate and tax base, but the main thing is that the amount of tax payable differs significantly. One such illustrative example is in the article “How much does a programmer earn in Moscow according to the Federal Tax Service.”

There are five taxation systems in total, but one of them (Unified Agricultural Tax) is intended only for agricultural producers. You can choose between the main one (OSNO) and special systems (USN, UTII, PSN). In principle, calculating the tax burden is an accounting topic, so if you know a competent specialist, then it makes sense to contact him.

• for OSNO you have to pay 13% of the difference between income and expenses plus VAT;
• under the simplified tax system, income tax will be 6% of income (in some regions the rate can reach 1%);
• under the simplified tax system Income minus expenses - from 5% to 15% of the difference between income and expenses (in some regions the rate can reach up to 1%);
• the cost of the patent is given by the Federal Tax Service calculator;
• calculating UTII is a little more complicated, but it can really be done on its own.

If you don’t want to delve into the calculations, but you can’t get to an accountant, we recommend that you apply for the simplified tax system Income, because This is the most common tax system. Plus, it is the simplest system in terms of reporting with a fairly low tax burden. It can also be combined with any other systems except OSNO.

Why is this important: special (aka preferential) tax regimes make it possible to reduce payments to the budget to a minimum. This right is enshrined in Article 21 of the Tax Code of the Russian Federation. But if you do not submit an application on your own to switch to the simplified tax system, UTII, PSN, then no one will persuade you. By default, you will have to work on a common system (OSNO). It is not advisable to forget about the reporting deadlines of your system; tax authorities will very quickly block the current account of an individual entrepreneur for failure to submit a declaration.

Another reason to submit tax reports on time is the risk of receiving a payment from the Pension Fund in the amount of 154,852 rubles. The logic is this: since you have not reported your income to the Federal Tax Service, then its size is simply immodest. This means that contributions will be calculated at the maximum (8 minimum wage * 26% * 12). This is not a fine, the money will go to your pension account and will be taken into account when calculating your pension (if everything has not changed again by then), but still the surprise is not the most pleasant.

2. Take advantage of tax holidays

If you register as an individual entrepreneur for the first time after the adoption of the regional law on tax holidays, you can qualify for a zero tax rate under the simplified tax system and the special tax regime. You can avoid paying taxes for a maximum of two years. Specific types of activities for which tax holidays are established are determined by regional law.

In Moscow, individual entrepreneurs-developers are not entitled to tax holidays, but if your activities are related to scientific research and development, then in most regions, including Moscow, you can receive a zero tax rate.

Tax holidays in detail, as well as the basis of most regional laws, can be found here.

Why is this important: If there is an opportunity to find yourself in a tax haven for some time, why not take advantage of it? In addition, on PSN, in principle, it is not possible to reduce the cost of a patent by the amount of contributions. And during the tax holiday, an individual entrepreneur’s patent will not cost you anything.

3. Know and pay your own insurance premiums

Insurance premiums are payments that every entrepreneur is obliged to make for himself to the pension fund (PFR) and the compulsory health insurance fund (MHIF). Starting from the new year, the Federal tax service, because According to the authorities, the funds themselves do a poor job of collecting payments in their favor.

The minimum contribution amount changes every year. In 2016, this is about 23 thousand rubles plus 1% on income over 300 thousand. If you were registered as an individual entrepreneur less than a year, then the amount is recalculated accordingly. You must pay your own contributions the entire time you are registered as an entrepreneur. Justifications and arguments of the form:

• I don’t conduct any real activities;
• What kind of business is there, only losses;
• The employer pays my contributions according to my work book;
• I’m actually retired already, etc.

funds are not accepted for consideration.

You can avoid paying contributions for yourself if the individual entrepreneur has been drafted into the army or he is caring for a child under one and a half years old, a disabled child, a disabled person of the 1st group, or elderly people over 80 years old. But even in these cases, the accrual of contributions does not automatically stop; you must first provide documents that you are not engaged in real business.

So it’s not worth opening an individual entrepreneur just like that, with the expectation that it might come in handy someday. If you nevertheless registered as an individual entrepreneur, but are now in downtime, then it is cheaper to deregister (the state fee is only 160 rubles), and, if necessary, register again. The number of approaches to the reception desk is not limited.

Why is this important: contributions will still be collected from you, even if you close the individual entrepreneur. Plus, a fine of 20% to 40% of the unpaid amount and penalties will be charged. In addition, by not paying your contributions on time, you deprive yourself of the opportunity to immediately reduce the accrued tax by this amount.

An example of reducing payments under the simplified tax system for insurance premiums

An individual entrepreneur without employees using the simplified tax system earned 1 million rubles in income for 2016. He had no business expenses (but even if he had, no expenses are taken into account for the simplified tax system for income).

Tax amount 1,000,000 * 6% = 60,000 rubles. Individual entrepreneurs' insurance premiums for themselves amounted to 30,153.33 rubles, based on:

• contributions to the Pension Fund - (6,204 * 12 * 26%) + ((1,000,000 - 300,000) * 1%) = (19,356.48 + 7,000) = 26,356.48 rubles.
• contributions to the Compulsory Medical Insurance Fund - 3,796.85 rubles based on (6,204 * 12 * 5.1%) at any level of income.

The entrepreneur took advantage of the right to reduce advance payments for the single tax on the simplified tax system at the expense of paid insurance premiums, so he paid them quarterly (*).

Let's calculate the total amount that went to the budget in the form of tax: 60,000 - 30,153.33 rubles (the amount of insurance premiums paid by which the tax can be reduced) = 29,846.67 rubles. As a result, his entire tax burden, including insurance premiums, is equal to 60,000 rubles. The net income from the business of an individual entrepreneur is 1,000,000 - 60,000 = 940,000 rubles.

(*) If you pay contributions in a lump sum at the end of the year, you will first have to pay the full tax amount of 60,000 rubles, and then submit an application to the Federal Tax Service for a refund or offset of the overpaid tax. Therefore, it is better to pay contributions in installments every quarter and immediately reduce quarterly advance payments under the simplified tax system. The result will be the same, but in the first case there will be more trouble.

4. Submit notice of commencement of activity

Few people know this, but before you start providing computer and communications equipment repair services ( OKVED codes 95.11 and 95.12), individual entrepreneurs must submit a notification to the local branch of Rospotrebnadzor about the start of business activities.

This is done in order to include you in the Rospotrebnadzor inspection plan, although they promise not to check you for the first three years after registration of an individual entrepreneur. But if a client complains about you, dissatisfied with the quality of services, then the inspection will be unscheduled. By the way, from January 1, 2017, Rospotrebnadzor will come with an inspection only if the client provides evidence that he has already tried to hold you accountable. Apparently, the department is already tired of checking the reality of all consumer complaints.

Why is this important: If you do not submit a notification, you can receive a fine of 3 to 5 thousand rubles. The mere indication of OKVED codes 95.11 and 95.12 when registering an individual entrepreneur does not oblige you to report anything. You only need to submit a notice if you actually plan to start repairing computers and communications equipment.

5. Open a current account

You can work without a current account if your clients are individuals who pay in cash, and you enter into agreements with other individual entrepreneurs and LLCs for amounts not exceeding 100 thousand rubles. This is the limit that the Central Bank has set for cash payments between commercial entities.

It is quite easy to exceed it, because this is not a one-time payment, but the amount of settlements throughout the entire term of the contract. For example, you entered into a lease agreement for a year, rent- 15 thousand rubles per month. The total amount of payments under the agreement will be 180 thousand rubles, which means that rent payment is allowed only by bank transfer.

Non-cash payments are, in principle, convenient, not only because they increase the number of payment methods, but also allow the consumer to pay you with a credit card when he has no other free money. Payments with electronic money can be legalized by creating a corporate wallet for individual entrepreneurs.

Why is this important: For violating the cash payment limit, an individual entrepreneur is subject to a fine under Article 15.1 of the Code of Administrative Offenses of the Russian Federation (from 4 to 5 thousand rubles). And we talked about why you shouldn’t accept payments to your personal card in the article 5 reasons not to use your personal account in freelancing.

6. Register as an insurer

If you use hired labor, you must register as an insurer in a timely manner. Moreover, the type of contract with the employee - labor or civil law - does not matter. Even if you enter into a one-time short-term contract for the performance of some services or work with an ordinary individual, you become the insured. That is, in addition to paying remuneration to the contractor, they are required to pay insurance premiums for him at their own expense, withhold and transfer personal income tax to the budget and submit reports.

The obligations of the policyholder to submit all kinds of reports on employees or performers are very depressing - there is really a lot of it, and it is complex. And since 2017, the main functions of administering contributions were transferred to the Federal Tax Service, nevertheless leaving some reporting for the Pension Fund and the Social Insurance Fund.

Why is this important: The deadline for registering individuals as insurers with the Pension Fund of the Russian Federation and the Social Insurance Fund is 30 days from the date of conclusion of the first employment or civil law contract. If you violate the deadline or do not register at all, the Pension Fund will fine you from 5 to 10 thousand, and social insurance - from 5 to 20 thousand rubles. Since 2017, the procedure for registering with the Social Insurance Fund remains the same, and instead of the Pension Fund of the Russian Federation, the application of an individual entrepreneur must be submitted to any tax authority.

7. Obtain a license if your type of activity is licensed

A license is permission to engage in a certain type of activity. In the IT sphere, Law No. 99-FZ dated May 4, 2011 classifies the following areas as licensed:

• Development, production, distribution of encryption tools, information systems and telecommunication systems, performance of work, provision of services, maintenance in this area, with the exception of the own needs of the organization or individual entrepreneur;
• Development, production, sales and acquisition for the purpose of selling special technical means, intended for secretly obtaining information;
• Identification activities electronic devices intended for secretly obtaining information, with the exception of the own needs of the organization or individual entrepreneur;
• Development and production of protective equipment, activities on technical protection confidential information.

Licenses are issued by the FSB; advice on licensing issues can be obtained.

Why is this important: for activities without a license or in violation of its terms, an administrative fine may be imposed under Article 14.1 of the Code of Administrative Offenses of the Russian Federation (for individual entrepreneurs, the amount is from 3 to 5 thousand rubles); confiscation of manufactured products, production tools and raw materials is also allowed. If, as a result of such activity, large damage is caused or income is received on a large scale, then criminal liability is possible.

Criminal Code of the Russian Federation, Article 171. Illegal entrepreneurship

1. Carrying out business activities without registration or without a license in cases where such a license is required, if this act caused large damage to citizens, organizations or the state or is associated with the extraction of income on a large scale, is punishable by a fine of up to three hundred thousand rubles or in the amount wages or other income of the convicted person for a period of up to two years, or compulsory work for a term of up to four hundred eighty hours, or arrest for a term of up to six months.

2. The same act:

a) committed by an organized group;

b) associated with the extraction of income on an especially large scale, -

is punishable by a fine in the amount from one hundred thousand to five hundred thousand rubles or in the amount of wages or other income of the convicted person for a period of one to three years, or forced labor for a term of up to five years, or imprisonment for a term of up to five years with a fine in the amount of up to eighty thousand rubles or in the amount of wages or other income of the convicted person for a period of up to six months, or without it.

Finally brief overview what not to do with IP:

1. An individual entrepreneur cannot be sold entirely as a business. An entrepreneur can sell property, remaining goods, raw materials, supplies, etc. The buyer, if he intends to continue to conduct business, must be registered as an individual entrepreneur or LLC. Documents containing the name of the entrepreneur-seller (licenses, permits, approvals, contracts, etc.) will have to be re-registered to the new owner, and this is not always easy.
2. IP cannot be renamed. Changes in the name of the individual entrepreneur are allowed only if the passport details of the individual have changed. For example, when changing your surname during marriage. But you can’t just call yourself by a different name or come up with a sonorous nickname/name. Can be registered trademark or service mark to be used in advertising, but in official documents The individual entrepreneur will still appear under full name individual.
3. You cannot register two or more individual entrepreneurs at the same time. Registration of an entrepreneur is carried out using his individual tax identification number, which does not change throughout his life, regardless of the change of name. If you are an existing entrepreneur, the tax authorities will immediately see this, so they will refuse to open a new individual entrepreneur. If you want to have several unrelated businesses, register companies, you just need to stop at the number 10, after which the founder is recognized as a mass one.
4. IP cannot be transferred or leased. This is equivalent to renting a passport or work book. There are such offers on the Internet, and they try to convince that everything here is within the law: they will show copies or originals of the individual entrepreneur’s registration certificate, issue a power of attorney and even sign an agreement on joint activities. But such an agreement can be concluded by commercial entities, not individuals, and therefore it has no legal force. Everything you earn will belong to the “lessor”; you can only try to prove something through the court.

If you are not an individual entrepreneur yet, but are actively thinking about it, read our complete instructions for registering an individual entrepreneur with all life hacks. We are also ready to advise you free of charge on your choice

IP is a concept that has long become an integral part of our lives. Individual entrepreneur is a form of registration of small and medium-sized businesses and has a number of its own characteristics. Almost every successful entrepreneur, regardless of whether he is the owner of an LLC or another form of business organization, began by obtaining the status of an individual entrepreneur.

IP - decoding of the concept

The abbreviation IP stands for individual entrepreneur and is an organizational and legal form of farming. Any individual entrepreneur is, first of all, considered a small business entity.

Today, the definition of an individual entrepreneur includes any officially registered individual who provides his services without any education. commercial structure. Previously, individual entrepreneurs were also called private entrepreneurs. This status is acquired only after registration with the tax authorities.

Who can become an individual entrepreneur?

The law clearly states who can register themselves as an individual enterprise. These include:

• adults with legal capacity, then if persons have reached 18 years of age;
• a legally competent minor upon reaching 16 years of age, but strictly with the consent of parents or guardians or in case of marriage;
• citizens residing on the territory of the Russian Federation at the time of registration. It does not matter whether they are citizens of the Russian Federation or another state.

Municipal and government employees cannot register as individual entrepreneurs.

It is worth noting that choosing a registration form to provide services as an individual entrepreneur is recommended for beginning entrepreneurs. In this situation, they will be able to try themselves as an entrepreneur, evaluate their capabilities and then, if necessary, choose another form of doing business, for example, an LLC.

Activities of an individual entrepreneur

What facts may indicate that a person is conducting entrepreneurial activity?

• The production and subsequent sale of certain things for the purpose of making a profit.
• Acquisition of property and its subsequent sale.
• Maintaining reports on business transactions related to the conclusion of transactions for the purchase and sale of services or goods.
• The presence of stable relationships between buyers and sellers in a certain field of activity.

Note that when conducting these types of activities in the absence of registration with the tax authorities, an individual is not an individual entrepreneur.

Financial features

Individual entrepreneur has a number of its own features in the financial sector.

1. Having registered with the tax office as an individual entrepreneur, a person is obliged to pay a fixed payment to the pension fund. At the same time, based on these contributions, the future pension is formed, work experience.
2. Any woman who has registered an individual entrepreneur has the right to receive child care benefits for up to 1.5 years in the event of the birth of a child.
3. A woman who has registered an individual entrepreneur, if she has voluntary insurance contributions to social insurance, also has the right to maternity benefits.
4. If there are voluntary contributions to the Fund social insurance any individual entrepreneur has the right to receive sick pay. However, the amount of payments is calculated based on the minimum wage.
5. Another feature is that an individual entrepreneur cannot. If necessary, an individual entrepreneur can only suspend its activities for a while, but will still have to pay taxes.

Pros and cons of individual entrepreneurs as a form of business activity

Like any type of activity, registration as an individual entrepreneur has its positive and negative aspects.

Pros

• Easy to register as an individual entrepreneur . So, for registration you must provide a photocopy and original passport, an application for registration and a receipt for payment of the state fee.
• Absence mandatory reporting by revenue . Unlike the owner of an LLC, an individual entrepreneur is not required to maintain a pile of documentation. A thin barn book is enough.
• Freedom from property tax used in business activities.
• Lower taxes , compared to other forms of organizing activities.
• Less fines . By analogy with taxes, in case of violation, an individual entrepreneur pays a smaller fine than the owner of an LLC.
• Checked less frequently by the tax authorities , what the statistics say.
• Easy to close . If desired, the individual entrepreneur can be closed within a few days. About how to close an individual entrepreneur -.
• No registration required legal address . When registering, the registration address of the individual himself is indicated.
• Sole ownership of income . The entrepreneur can use the money earned, minus taxes, for his personal purposes.

The activities of an individual entrepreneur are included in the length of service, which ultimately affects the amount of the pension.

Cons

IP has a number of its own disadvantages, which include:

• Impossibility of selling or buying individual entrepreneurs . This is due to the fact that in fact an individual entrepreneur is, in essence, an individual.
• The individual entrepreneur is liable for his obligations with property . That is, in the event of loan debts or unprofitable business, you will have to cover losses caused to third parties - banks, counterparties - from your own pocket. Otherwise, the court has the right to force you to sell part of the property to pay off debts.
• Prohibition of certain types of activities . An individual entrepreneur does not have the right to sell alcoholic beverages, open banks, etc. In addition, when conducting activities that require a license, the individual entrepreneur may be fined or even liquidated.
• Distrust from the outside legal entities. Legal entities do not always strive to enter into agreements with individual entrepreneurs. This is often due to the peculiarities of taxation.
• Fixed contributions to the Pension Fund regardless of the presence or absence of activity. Even if you have not made a profit for several months, you will have to pay taxes.
• It is not possible to have multiple co-founders at the registration level. You can register an individual entrepreneur only for one person.
• The individual entrepreneur must manage the business independently , it cannot have substituents or general directors. Only the individual entrepreneur has the right to sign. Even in the event of a serious illness, he will have to make a decision.

Video: Feedback on individual entrepreneurs after a year of work

IN next video you can hear a review about the individual entrepreneur - why it was opened, what are its features, what are the results after a year of work:

Individual entrepreneur is the simplest and fastest form of small business registration. Despite the fact that the status of an individual entrepreneur still implies some restrictions, it is ideal option to start a business, especially if you do not have the necessary skills in running a business.

Any citizen of the Russian Federation who has become an adult can open his own business. At the same time, he will also have to calculate and pay taxes and various fees himself. The article talks about what taxes an individual entrepreneur (IP) pays, their diversity and characteristics.

Who is eligible for the status of an individual entrepreneur?

Any Russian citizen who has reached the age of majority can register as an individual entrepreneur. You must register with the tax office, which supervises the address of residence indicated in the passport. However, before doing this, you should definitely find information about what taxes an individual entrepreneur pays.

The registration procedure is extremely simple: if a citizen comes in person and has a passport with him, then he only needs to write an application according to the established template, provide a copy of the passport and a document that can confirm the fact of paying the state duty. If the documents are submitted by a representative of such a citizen, then a copy of the passport and the signature on the application will have to be notarized.

The tax office is not interested in whether the applicant already has his own business and what his profitability will be. The main thing is that an individual entrepreneur pays taxes regularly and on time.

Taxes paid by an individual entrepreneur as an individual

Taxes for an individual entrepreneur can be divided into several categories.

Taxes he pays as an individual:

What taxes does an individual entrepreneur pay as a merchant?

Taxes for an individual entrepreneur, depending on whether he is engaged in business or not:

• Personal income tax - if he has employees on his staff.
• A single tax according to the simplified tax system replaces several taxes (income tax, personal income tax, property tax) and is paid if business activity is conducted.
• Unified tax on imputed activities (UTII) - is paid in any case, even if the entrepreneur is completely inactive.
• A patent is acquired for the right to work in a chosen field.
• Unified Agricultural Tax (USAT) – it is applied only by agricultural producers.

In addition to the above taxes, an individual entrepreneur may pay:

• VAT - if he carried out transactions subject to this tax.
• Excise taxes - if he carried out activities related to the circulation of goods subject to excise taxes.

Special taxes

Taxes for an individual entrepreneur in Russia can also be specialized when they are strictly related to the industries in which the individual entrepreneur operates. Among them:

• The already mentioned Unified Agricultural Tax.
• Tax paid on the extraction of mineral resources (MET).
• A fee charged for the use of wildlife (hunting, most often).
• A fee collected for the use of aquatic biological resources (fishing).
• Production of printed products.
• Tax levied on lotteries.

“Simplified” - two types

Most often, citizens, after receiving information about what taxes an individual entrepreneur pays, choose the “simplified” tax system. In this case, a single tax is paid, which, as mentioned above, can replace income tax, personal income tax and property tax. Such an entrepreneur does not pay VAT either, but only until he begins to carry out transactions subject to this tax.

An entrepreneur who has chosen the simplified tax system has the right to choose an object. An individual entrepreneur can choose from two tax options:

1. He can withhold tax on the difference that arises at the end of the year between income and expenses. The upper limit of the tax rate is established by law and is 15%, the lower limit is 5%. Within this framework, regions are free to set its value themselves. In practice, such an object is called “income minus expenses.”
2. He can withhold tax on all income he receives during the tax period. The rate here is the same for everyone – 6%. The name of the object is “income”.

Single tax on imputed income and patent

In the Tax Code, there are regimes when taxes are paid by an individual entrepreneur in a fixed amount, which is tied to the property that helps the businessman generate income, or to the type of activity. There are two of them - UTII and patent.

UTII assumes that an individual entrepreneur pays imputed tax in any case, even if he did not receive income. Its size is determined by local authorities, and it is strictly tied to the type of activity being carried out and to the conditions in which this activity is carried out. This tax is also unique in that even the complete inaction of an entrepreneur does not exempt him from payment, which must be made quarterly.

A patent is simpler because, having paid once for the right to carry out a certain type of activity, the individual entrepreneur does not draw up reports or make additional payments.

Excise taxes

When listing the taxes of an individual entrepreneur, excise taxes should be mentioned. This type of budget payment is specific and is associated with the implementation of certain types of activities, for example, such as production alcoholic products, sales of fuels and lubricants.

It is noteworthy that the payment of excise taxes can be completely combined with the “simplified tax”, since the simplified tax system does not have restrictions for such types of activities. But the patent and UTII are completely excluded: the legislator specifically separated different angles these regimes and activities related to excise taxes.

When does an entrepreneur switch to a common system?

Individual entrepreneur taxes have unique property: if the amount of a businessman’s income for the year exceeds a certain limit, they change into a different quality and quantity.

So, in order to stay on the “simplified” way, the following conditions must be met:

• The staff must be less than 100 people.
• Annual income must be less than 60 million rubles.
• The residual value of the property should not exceed 100 million rubles.

If the individual entrepreneur fails to stay within these limits, he is automatically transferred to common system taxation, when the income tax of individual entrepreneurs becomes diverse and complex. You will have to pay already forgotten VAT, income tax, personal income tax and report differently.

In what cases does an individual entrepreneur pay personal income tax?

Taxes for an individual entrepreneur are inherently related only to the activities of a businessman. But he should not forget about such a tax as personal income tax. Ignoring it may lead to sanctions from tax authorities.

The fact is that the tax service will take into account all transactions for the sale of real estate, vehicles, obtaining shares in companies, etc. separately. And such income will be taxed at a rate of 13%, rather than 6 or 15%. Moreover, since last year, the tax service has been intensively establishing information interaction with other government agencies (for example, the Cadastral Chamber), which submit data on transactions. And if an entrepreneur does not timely file a tax return on his last year’s income, he may face serious penalties.

Insurance premiums

Individual entrepreneur taxes do not include another very important payment that requires significant cash. These are insurance contributions to the Pension Fund, the Compulsory Medical Insurance Fund and the Social Insurance Fund, and all individual entrepreneurs are required to pay them.

Until this year, contributions had to be paid in a fixed amount; currently, a new component has been added to the constant payment, equal to one percent of the excess income of an individual entrepreneur over the amount of 300 thousand rubles. True, it only applies to those using the simplified system. The rest still pay the established amount.

In our country, starting a business legally is not difficult. It is enough to first collect the necessary ones and study them. According to statistics for 2017, about 4 million individual entrepreneurs are registered in Russia. However, individual entrepreneurs need to remember that they not only have the right to make a profit, but also corresponding responsibilities, for failure to comply with which sanctions and fines are imposed. In today's article we will tell you who individual entrepreneurs are, what they do, and what responsibilities they have.

Page content

An individual entrepreneur is an individual who conducts independent business activities with the aim of obtaining systematic profit without education, and has passed the procedure established by law state registration.

Previously, the terms PE “private entrepreneur” and PBOYUL “entrepreneur without forming a legal entity” were used. Now these terms are combined into IP.

Individual entrepreneurs in our country can become:

• capable persons who have reached 18 years of age;
• legally competent minors who have reached the age of 16 (with the consent of their parents or guardians, who have entered into marriage);
• foreign citizens living in the Russian Federation.

IMPORTANT: a state or municipal employee cannot be an entrepreneur.

Why register an individual entrepreneur?

In our country, millions of people are engaged in their own business. In principle, there is nothing wrong with this if you are not engaged in prohibited activities, and your “home” business does not require renting premises or concluding contracts with suppliers. Most often, an example is the services provided by self-trained craftsmen, such as: accounting, copywriting, manicure and hairstyles, massage, apartment rental, taxi with your own car, repair of apartments, cars, computers and others. Of course, in this case you do not pay and do not deal with paperwork.

Pros of registering an individual entrepreneur

• By registering an individual entrepreneur legally, you can conduct business with a clear conscience;
• The procedure is either very simple and done quickly;
• The range of possible activities carried out is much wider;
• The pension period is in progress, as you pay into the pension fund;
• You can get a loan for a small business on more favorable terms than for an individual.

Disadvantages of registering an individual entrepreneur

• in case of bankruptcy and debt formation, the individual entrepreneur is liable with all his property, that is, the court will take away everything that can be taken away by law;
• some companies that pay VAT do not want to use the services of individual entrepreneurs due to conflicting taxation systems, leading to the fact that the “big” company actually pays this tax for the entrepreneur;
• An individual entrepreneur cannot register a business together with someone else. He is the sole owner of the business and cannot even hire an employee as a director;
• An individual entrepreneur is obliged to make social payments in a fixed amount constantly and regularly, regardless of the level of profit (even if the work is at a loss);

The individual entrepreneur pays a fixed payment to the pension fund, which does not depend on the level of his income. The pension contribution in 2019 is 22,261.38 rubles per year plus 1% of income if it exceeds 300,000 rubles.

An individual entrepreneur can carry out activities at a rate of 6%. However, he does not pay 9% of profits in the form of dividends.

Individual entrepreneurs are exempt from maintaining complex accounting records. He only maintains tax reporting: USN, 3-NDFL, UTII, KUDIR

If an individual entrepreneur regularly pays pension contributions, then his length of service goes from the opening of the individual entrepreneur to its closure, also regardless of the level of profit.

A female entrepreneur has the right to receive maternity leave if she has made voluntary insurance contributions to social insurance.

Child benefit for a child under 1.5 years old can be received by individual entrepreneurs of any gender.

An individual entrepreneur can receive sick leave if he has made voluntary contributions to social insurance. However, the amount of sick leave is calculated based on the minimum wage, the amount of which is established by law. Therefore, these payments will be insignificant.

Individual entrepreneurs are not entitled to leave.

Thus, along with the rights, individual entrepreneurs also have an extensive list of responsibilities to the state. Note that individual entrepreneur is the most popular type of registration of legal activities in small businesses. As you can see, there are some nuances, pros and cons. If you want to start your own business, you will have to understand the nuances and take action.

Remember that ignorance of the laws does not exempt you from complying with them, much less from fines. Therefore, it is necessary to know the amounts of mandatory payments, rules for hiring employees, etc. And also for individual entrepreneurs it is desirable, but optional, after registration, and.

I think many of the readers have come across the abbreviation “IP”, as well as “PBOYUL” or “PE”, or simply the words “merchant”, “entrepreneur”, or the most famous - “businessman”. But what do they, in essence, mean? It is worth referring to the legislation.

Law on individual entrepreneurs

As such, there is no special law on individual entrepreneurs and is not expected. IP is dedicated, where it is said that a citizen has the right to engage in entrepreneurial activity at his own peril and risk without creating.

Who can become an entrepreneur

Characteristics of status

In essence, nothing changes in a person - having received the status of an individual entrepreneur, he does not become a brilliant “business shark”. It’s just that a record appears in the corresponding state register (USRIP) that such and such a citizen on such and such a date is registered as an individual entrepreneur. The state needs this, first of all, to collect taxes from this citizen, which he is obliged to pay when receiving profit from business activities.

Read also: On what basis does an individual entrepreneur operate, how to write correctly when concluding an agreement in 2019

Many people mistakenly consider an individual entrepreneur to be a legal entity and such stupid questions often arise as: “buy a ready-made individual entrepreneur” or “”. A citizen, having received the status of an individual entrepreneur, remains an individual and, naturally, it is impossible to buy or divide it.

On what basis does the IP operate?

The fact of its state registration (the same article 23 of the Civil Code of the Russian Federation. Since registration certificates are no longer issued, and the Registration Sheet still does not look very respectable, it is easier to indicate in the contract that the individual entrepreneur acts on the basis of state registration from such and such a date , OGRNIP such and such.

Rights, responsibilities and benefits

The same as for “ordinary” citizens, plus the right to engage in entrepreneurial activity. But there are several more responsibilities, among them:

• from business activities;
• in settlements with the population;
• obligation to report to the registration authorities about various changes information for their inclusion in the Unified State Register of Individual Entrepreneurs (address, last name, types of activities, etc.).

Loss of individual entrepreneur status

You can voluntarily renounce the status of an individual entrepreneur, or you can lose it. Among the reasons:

• injunction to engage in business activities;
• prohibition to engage in entrepreneurial activity as a result of bankruptcy;
• loss of legal capacity;
• recognition as missing, or dead.

Features of bankruptcy

After amendments in 2015, and the emergence of a full-fledged institution of bankruptcy of citizens, bankruptcy of an individual entrepreneur essentially became equal to bankruptcy of a citizen, subject to the peculiarities of this type of bankruptcy.

Features of individual entrepreneur bankruptcy are regulated by Articles 214-216 of the Federal Law “On Insolvency (Bankruptcy)”, and are:

In addition to the inability to satisfy the demands of creditors, the inability to repay current payments has been added to the sign of insolvency (Article 214 of the Federal Law on National Security);

The consequences of bankruptcy for individual entrepreneurs will be as follows:

• From the moment of recognition as bankrupt and with the introduction of the procedure for the sale of property, the status of an individual entrepreneur is lost;
• 5 years from the date of completion of the procedure cannot be registered as an individual entrepreneur;
• For 10 years from the date of completion of the property sale procedure, a person cannot hold a position in the management bodies of a credit institution.