Legal status of an individual entrepreneur (IP). Details about the activities of individual entrepreneurs

What are the features of the legal status individual entrepreneur? Many people planning to start their own business are faced with the choice of its organizational and legal form. Let's consider what advantages and disadvantages the status of an entrepreneur has, as well as what you need to know before proceeding with its official registration?

Who are "individual entrepreneurs"

The right of citizens to engage in entrepreneurial activities is enshrined in the Civil Code Russian Federation(Article 23).

Any capable citizen of Russia over 18 years of age has the right to organize activities whose purpose is the systematic extraction of profit. That is, become an entrepreneur.

From what moment does the legal status of IP arise? Please note that the status of an individual entrepreneur appears only after official registration. Accordingly, the legal status comes from the moment the federal tax service issues the certificate of registration as an entrepreneur to the applicant. Entrepreneurial activity without registration on the territory of Russia is prohibited and punishable by law.

The right of citizens to engage in entrepreneurial activity is enshrined in the Civil Code of the Russian Federation.

Registration of IP status

Currently, registering as an individual entrepreneur with the federal tax service and obtaining the appropriate certificate is quite simple. The best way to do this is through the public services portal.

Find the "Registration" section on the portal legal entities and individual entrepreneurs. Fill out the form provided by the portal. You will also need to upload scanned documents - a copy of the passport and receipts for payment of the state fee.

You can also check the status of an individual entrepreneur through the electronic register of legal entities. To do this, you will need to enter the TIN of the entrepreneur or his full name indicating the region. Such a service is sometimes necessary for counterparties to check the details of the entrepreneur, or for the businessman himself to find out whether his registration was successful or, vice versa, whether the termination of the status has come into effect.

Sole Proprietor is a natural or legal person

Consider the features of the legal status of IP. Let's start with how an entrepreneur differs from a legal entity. Often the question is: To whom are individual entrepreneurs closer - to legal entities or to individuals?

The answer to this question is quite simple - an individual entrepreneur is not a legal entity and has rights and obligations that are different from it, but at the same time it has specific differences from an individual. IP is a special status that implies a specific taxation regime, the risk of loss and loss of property, and some other features.

Features of the status of an entrepreneur

Consider what constitutes the civil law status of an individual entrepreneur:

The legality of the IP status is confirmed by the presence of official registration with the tax service. Entrepreneurial activity conducted without official registration is prosecuted by law.
The legal personality of citizens engaged in the systematic extraction of profit stems from the fact that they have property rights - the right to benefit from their own property, as well as from the right guaranteed by the Constitution to apply their own knowledge and skills for self-realization.
The income of an entrepreneur is in no way limited by law, nor is his right to use any property that is in civil circulation for profit.
In case of losses due to the fault of commercial organizations or authorities, the entrepreneur has the right to apply to the arbitration court for their compensation.
The legal status of an individual entrepreneur allows you to conduct business personally, and also allows you to hire employees (from 5 to 250 people, depending on the size of the enterprise).
In accordance with the requirements of Russian legislation Individual entrepreneurs cannot engage in certain sectors of the economy:
- production and retail alcohol;
- insurance;
- banking;
- investment funds;
- non-state pension funds;
- security activities, production and circulation of weapons (ammunition);
- television and radio broadcasting;
- space industry.
Entrepreneurs operate at their own risk. In the event of loss or bankruptcy, they are liable with personal property (with the exception of a few categories of property). The following are not subject to withdrawal:
- the only living space (however, this does not apply to mortgages);
- items for personal use;
- property necessary in professional activities;
- breeding animals and seeds, even if not used in the main activity;
- money in the amount necessary to support the family (living wage), as well as food.

An individual entrepreneur is not a legal entity and has rights and obligations that are different from it, but at the same time it has specific differences from an individual.

Other IP rights

Russian legislation gives individual entrepreneurs a number of rights and privileges. Some of them we have named previous section, but also note that:

Individual entrepreneurs do not pay personal income tax (for more details on taxes, see the relevant section).
The activities of the IP are counted in the length of service.
An entrepreneur is also entitled to work under an employment contract (except for a number of “prohibited” positions). He can also act as a founder of a legal entity, participate and create public organizations.
The right to use the seal and the current account, but also the right to refuse them.

Responsibilities of individual entrepreneurs

However, in addition to rights and benefits, entrepreneurial activity implies a number of specific duties, the failure to fulfill which will necessarily entail problems.

Payment of taxes and mandatory insurance payments several times a year, including for hired employees.
Change financial statements within the time limits established by law.
It is forbidden to combine entrepreneurial activity with state and municipal service. If a former entrepreneur plans to enter the state or municipal service, a certificate of the absence of the status of an individual entrepreneur will be proof of the completion of his independent activity. You can also issue this document on the official website of the tax service.
The status of an individual entrepreneur is not inherited, however, a businessman has the right to transfer to his heirs all the property and means of production necessary for work.

How self-employed people pay taxes

A very important question regarding legal status individual entrepreneurs - this is the payment of taxes and mandatory payments. First, let's look at what categories of taxes and contributions are required. They can be conditionally divided into 3 categories:

Income tax (instead of personal income tax). The amount depends on the tax regime.
Pension and health insurance. The amount of these payments is fixed. Pension - 26645 rubles + 1% of income if it exceeds 300 thousand rubles. Medical - 5840 rubles.
Transport and land tax in the presence of the specified property are paid according to the rules for individuals.

A very important issue regarding the legal status of individual entrepreneurs is the payment of taxes and mandatory payments.

Simplified taxation system

The most profitable and therefore common taxation system for individual entrepreneurs is the simplified tax system., the so-called "simplification". In this case, income tax is paid either at the rate of 6% of the income or at the rate of 15% of the working capital. An entrepreneur on a “simplified” system does not pay personal income tax and VAT, but pays insurance and personal income tax in the amount of 13% for his employees.

Taxation according to UTII

The imputed activity tax is calculated using a formula based on the basic income and activity rate, as well as the inflation rate. It is 15% of imputed income. Under this taxation regime, personal income tax and VAT are also not paid, and 13% is paid from the income of employees.

Filling out a payment order

Which one should indicate the status of the IP payer when filling out payment order? Due to the fact that the legislation very strictly regulates the scope of paying taxes and other obligatory payments, errors in filling out are unacceptable. Remember that individual entrepreneurs indicate the code "08" when making payments to the Pension Fund and the Social Insurance Fund, "02" when paying personal income tax.

Also note that IP pays personal income tax for employees. What status should be specified then? With contributions for employees - "09". Since 2018, the status of an individual entrepreneur in payments on the simplified tax system is indicated by the code "09". The status is indicated in the topmost line of the payment order in the "101" field.

How often do you have to pay taxes

Individual entrepreneurs pay taxes 4 times a year - by quarters. For the first - in April, for the second - in July, for the third - in October, for the fourth - in the first months next year. Also, before April 30 (sometimes the deadline can be postponed for several days due to holidays and weekends), you need to submit a tax return.

The most common case of loss of IP status is the refusal of the citizen himself to engage in entrepreneurship and the submission of an appropriate application.

How can I lose the status of an individual entrepreneur

Loss of IP status is possible in several situations. The most common is the refusal of the citizen himself from doing business and filing an appropriate application. Cancellation of state registration takes place on the same day. Other reasons for deprivation of status include:

bankruptcy;
admission to the state and municipal service;
partial or complete incapacity of a citizen;
death.

Conclusion

The legal status of an individual entrepreneur gives a citizen a specific set of rights and obligations. It has a special tax regime. The legality of activities for independent profit-making is determined by the presence of state registration.

An entrepreneur is an intermediate link between an individual and a legal entity. This organizational and legal form is suitable for start-up businessmen and small businesses. However, note that Russian legislation prohibits entrepreneurs from operating in certain industries.

There are the following definitions of the term "individual entrepreneur":

Individual entrepreneurs - (entrepreneurs without forming a legal entity or abbreviated PBOYuL) - these are individuals, registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity (clause 2, article 11 of the Tax Code of the Russian Federation).

IP (private entrepreneur) - subject economic activity, the organizational and legal form provided for by the legislation of the Russian Federation for the conduct of commercial (entrepreneurial) activities by citizens registered in the prescribed manner. Previously, equivalent concepts were used in the legislative acts of the Russian Federation - "entrepreneur without forming a legal entity (PBOYuL)", "private entrepreneur", which at the moment have been successively replaced by the term "individual entrepreneur".

An individual entrepreneur is a citizen engaged in initiative, independent activity (within the framework not prohibited by law), carried out on his own behalf, under his own property responsibility, the purpose of which is to make a profit or personal income.

The entrepreneurial function is the business of a private business person. However, not everyone business man is an entrepreneur. From a socio-economic point of view, an entrepreneur is a type of "upstart". He is a revolutionary in the economy, an unwitting initiator of social and political revolutions. Being an entrepreneur means doing things differently than others do. The entrepreneur is devoid of tradition. He must have a specific set of qualities: common sense, constancy, knowledge of people, management talent.

The entrepreneur uses his organizational, managerial abilities for only one purpose - to make a profit. Therefore, in life, citizens who engage in commerce occasionally, without any documents giving them the right to engage in this activity, call themselves entrepreneurs, for example, persons reselling goods. If a citizen engages in such activities occasionally, without pursuing profit, he cannot be regarded as an entrepreneur and should not be registered as such.

Entrepreneurship has the following distinctive features, allowing to distinguish it from the composition of the labor factor into an independent factor of production:

This is an initiative, independent activity aimed at combining all factors of production and coordinating their use in order to make a profit by producing the goods necessary for society;

People engaged in entrepreneurship are guided by the markets of goods, services, new technologies, they are able to acquire and use the necessary information in order to achieve high results;

The activities are associated with the risk of losing their investments in production and the possible non-recoupment of efforts invested in new projects.

From a legal point of view, an entrepreneur is only a citizen who is engaged in entrepreneurial activity and is registered in this capacity.

To acquire the status of an individual entrepreneur, a citizen must have the following common features subject of civil law:

1) legal capacity (ability to have civil rights and take responsibility)

2) legal capacity (the ability to acquire and exercise civil rights by one's actions);

3) have a place of residence (a place where a citizen resides permanently or predominantly).

Individual entrepreneurs have general legal capacity and can engage in any type of entrepreneurial activity except those prohibited by law.

The status of an individual entrepreneur is acquired as a result of state registration of a citizen as an individual entrepreneur. To register, you must have legal capacity.

Full legal capacity arises, firstly, from the moment he reaches the age of majority, secondly, from the time of marriage until the age of eighteen (Article 21 of the Civil Code of the Russian Federation), thirdly, from the moment a person who has reached sixteen years of age is recognized as emancipated (Article .27 of the Civil Code of the Russian Federation).

However, paragraph 1 of article 27 Civil Code The Russian Federation defines one of the conditions for declaring a minor who has reached the age of 16 fully capable, the exercise of entrepreneurial activity by him. A literal reading of this norm indicates that by the time of reaching the indicated age, the minor is already engaged in such activities, that is, this is already a fait accompli.

As you can see, a minor incapacitated citizen can also be registered as an individual entrepreneur.

Based on the meaning of Article 26 of the Civil Code of the Russian Federation, which determines the possibility of making certain transactions by citizens aged 14 to 18 with the written consent of their legal representatives, we conclude that an individual who has reached 14 years of age can become an individual entrepreneur.

An individual entrepreneur, like a commercial legal entity, acts on his own behalf and makes any trade transactions not prohibited by law, i.e. those transactions that are related to the implementation of entrepreneurial activities are carried out systematically or constantly and are aimed at making a profit.

An individual entrepreneur is liable for his obligations with all his property, with the exception of that property, which, in accordance with civil procedural legislation, cannot be levied. Moreover, an individual entrepreneur who has not fulfilled or improperly fulfilled an obligation related to the implementation of entrepreneurial activity is liable regardless of fault. He is released from liability only if he proves that the proper performance of the obligation was impossible due to force majeure. At the same time, such circumstances do not include, in particular, violation of obligations by the debtor's counterparties, lack of goods on the market necessary for execution, lack of the necessary funds from the debtor.

An individual entrepreneur has the right to use hired labor. Formerly acting Russian law"On Enterprises and Entrepreneurial Activity" expressly forbade the use of hired labor by a citizen-entrepreneur.

Entrepreneurial activity carried out at one's own risk implies the economic independence of a citizen and the closely related responsibility of an individual entrepreneur for the results of his activity.

An individual entrepreneur carries out business activities at his own expense, bears full property responsibility for its results, manages his own enterprise, is completely independent in organizing and developing his business, and solely decides on the distribution of income received after paying taxes.

An individual entrepreneur has the right to engage in any type of entrepreneurial activity that is not prohibited by law. At the same time, he can engage in certain types of activities, the list of which must be determined by law, only on the basis of a special permit (license). People who are psychologically not adapted to submission often create their own business. They cannot work in systems where there are bosses behind their backs, where they have to do their part of the work without feeling the final results of their work. The motivation for entrepreneurship among those who have found themselves calling for this is often the desire for freedom - material freedom, freedom to influence their own position, freedom to influence the activities of their company, freedom to influence their niche in the market. They do all the work in their small business, their income may not be great, but they are proud to be the source of what is happening, the owners.

The implementation of independent commercial activities in Russia is allowed after state registration. Business is allowed to run from own name or on behalf of the company. The legal status of a registered individual entrepreneur is ambivalent. A citizen has specific duties, new powers, and responsibility for misconduct is tightened. It is interesting that the merchant does not lose his former rights. They are inextricably linked with the personality and do not change as they are involved in new economic relations.

Legal capacity of the entrepreneur

The lack of a clear distinction between legal terms in the reference literature gives rise to many problems. excludes equalization of individual entrepreneurs with organizations. When resolving the issue of legal capacity, it is necessary to rely on the rules on individuals. Possibility of protection legitimate interests a person appears from the moment of birth, and is lost with death. Entrepreneurs are no exception.

The concept of legal capacity is much more important for business representatives. Conducting independent business activities general rule allowed from 18 years of age. Persons under the age of majority will have to obtain the approval of a legal representative or guardianship authorities. An exceptional case is the registration of an emancipated teenager. The legal independence of such persons comes with the acquisition of force by a judicial act.

The third component of the legal position is the possibility of bringing a person to responsibility. In this case, experts use the term "tortiousness".

The legal status of an entrepreneur should be called legal personality. The concept is used to denote a formal readiness to legally enter into any relationship. The legal personality of an individual entrepreneur is directly related to making an entry in the state register (EGRIP). It combines the right-, dee- and delictual capacity. The status is assigned on the basis of a simple notification submitted to the tax office. The procedure takes 3 days.

Business registration bans

The legal statuses of an individual entrepreneur and an individual are inextricably linked. Misdemeanor, restrictions or participation in specific procedures interferes with self-employment. Most clearly, the dependence is manifested during state registration. The list of grounds for denial of registration is enshrined in Law 129-FZ of 08.08.01.

Reason for returning the application	Brief legal description	Note
Re-appeal	An individual has the right to register only one individual entrepreneurship. The rule applies to peasant farms ()	If the applicant previously voluntarily ceased commercial activities, he may re-register. The number of appeals is not limited by law. Only the current status matters
Partial or complete disability	Only adults can register with the state without additional permits. Applicants over 14 years of age will be required to attach written consent from their legal representative to the notification. An alternative to the document is the permission of state guardianship authorities. Deprivation of legal capacity by the court is an insurmountable obstacle to doing business	Emancipated teenagers do not need to obtain permits. They submit to the tax office judgment or marriage certificate
Illegal status of a migrant	Not only Russians are allowed to engage in commercial activities in the Russian Federation. Foreign citizens and stateless persons are entitled to register. A prerequisite is the legal stay or residence in the country	Attached to the notification are copies of the residence permit or other documents of migration control
criminal record	Doing certain types economic activity allowed only to persons with a crystal clear reputation. Thus, the indication in the application of codes related to the upbringing of minors will require the presentation of a certificate of no criminal record.	The legislation establishes a whole list of areas in which previously convicted persons cannot work.
Bankruptcy	The decision on financial insolvency deprives the right to re-registration. The ban is valid for 5 years	During the limitation period, a bankrupt cannot participate in the management of companies. Registration of IP is not allowed if the corresponding prohibition is established by the court
Error in choosing an industry	Certain areas do not involve the participation of individual entrepreneurs. These, for example, include the sale of psychotropic drugs, air transportation, private security activities, etc.	Industries closed to individual entrepreneurs are determined at the federal level

Military and state (municipal) employees, law enforcement officers, judges, deputies of all levels, and senators are prohibited from having their own business. Restrictions are enshrined in industry regulations. Violation established rules entails the application disciplinary action, including early withdrawal of powers.

Pros and cons of sole proprietorship

The benefits of IP have been repeatedly voiced means mass media. The state welcomes the increase in the number of free traders. Participants economic relations provide financial, legal and informational support. In 2018, there is a moratorium on scheduled inspections of small businesses.

The obvious advantages of the status are:

The right to work without an accountant. Law 402-FZ frees entrepreneurs from the need to build a cumbersome accounting system. Taxpayers do not put property on the balance sheet, are not required to calculate depreciation or conduct an annual inventory. Private businessmen have the right to limit themselves to calculating obligations to the budget and funds. When switching to special modes, you can cope with the task without the involvement of specialists. The special legal status of individual entrepreneurs in accounting significantly reduces the cost of commercial projects.
Minimum registration period. The registration procedure for state register takes only 3 business days.
Refusal of stamps and forms. Entrepreneurs are not required to use means of individualization. They acquire the right to a name from birth. Documents are allowed to be drawn up on ordinary sheets. It is not required to certify the signature with a seal.
Recognition in the international arena. The legal status of an individual entrepreneur in PIL allows you to conclude foreign trade contracts, defend interests in courts, invest money in promising foreign projects. The legislation of the Russian Federation does not establish restrictions on participation in world-class programs. The condition is only the declaration of income abroad.
Lack of strict requirements for business organization. Conducting activities on behalf of individual entrepreneurs removes the issue of hiring managers. The merchant carries out management and guidance personally. The decision to conclude employment contracts the business owner accepts independently. Refusal to involve hired employees exempts from the delivery of voluminous reporting and payment of insurance premiums.
Financial freedom. Entrepreneurs are not restricted by dividend rules. All receipts to settlement accounts or to the cashier are recognized as personal income. You can spend money and use values immediately. You do not need to pay additional taxes.
Minor cost. The registration fee is 800 rubles. Her size long time stays at the same point. Deputies are discussing the idea of abolishing registration fees. The entrepreneur does not have to form the authorized capital. He is responsible for his obligations with personal property and savings. At the same time, the minimum value of assets has not been approved.
Mitigation of administrative sanctions. The severity of penalties for individual violations depends on organizational form. Firms apply the most crackdown. Private businessmen are often equated with officials.

IP has many disadvantages. The main disadvantage is the impossibility of distinguishing property liability. Lack of funds to meet creditor claims entails foreclosure on all assets. The exception is the values listed in Article 446 of the Code of Civil Procedure of the Russian Federation.

Lawyers also consider the ban on the implementation of certain types of activities, the inadmissibility of creating branches, representative offices, subsidiaries as disadvantages. In addition, the registration of an individual entrepreneur gives rise to the obligation to transfer fixed contributions to the PFR and the MHIF of Russia. Money is required to be paid even during periods of suspension of business.

Business law in the country is not codified. The absence of a single set of rules significantly increases the level of risk. Lawyers recommend considering a protection system for initial stage. Experts have identified several key points.

IP and marriage contract

If a notary agreement is not concluded before the start of commercial activity, all receipts are recognized as family income. Divorce will be a real disaster for the project.

Often a marriage contract is used as a tool to protect against losses. So, part of the assets can be abandoned in favor of the spouse before registering the business. In this case, they will not be able to foreclose on valuables even in case of bankruptcy. It is very difficult to challenge an agreement signed before the registration of an individual entrepreneur.

Financial policy and tax control

Regular comprehensive analysis protects the entrepreneur from employee abuse and significantly reduces the risk of being held liable. Reports serve as a kind of benchmark for business development. The most important task at the initial stage is the competent choice of the tax regime. The system must meet the specifics of the project, exclude the overstatement of the fiscal burden and ensure the transparency of cash flows.

Experts recommend considering the scheme for submitting declarations, the procedure for payment mandatory fees, mechanisms to attract capital. The calculation of the maximum number of personnel will also help to avoid financial problems. The measure will eliminate the unreasonable growth of the staff.

It is not necessary to completely abandon accounting. It is necessary to track the movement of material values in order to optimize business processes. Internal control is effective tool stabilization.

Public relations

Integration into the professional community is another element of success. Cooperation with associations and foundations helps to avoid hidden pressure, eliminates the threat of a raider takeover. Socially active businessmen are less likely to face unfair competition.

In addition, specialized associations implement programs state support. Through such organizations, loans at a subsidized rate, grants, guarantees for participation in procurement, and other assistance are provided.

In conclusion, we note the relative geographical freedom of entrepreneurs. Private merchants are registered at the place of residence. They do not need a legal address, and they can operate in any region of the country. When moving, information in the USRIP is corrected automatically.

For many who are just starting to enter the business, the legal status of an individual entrepreneur is not always clear. Meanwhile, an accurate understanding of the essence and meaning this provision it is simply necessary when choosing one or another organizational and legal form for your own business.

Unfortunately, the level of legal literacy, despite the abundance of lawyers, in our country is often not very good. high level. As a result, even promising business ideas turn out to be unrealized for the simple reason that a person could not fully understand all the nuances that the status of an individual entrepreneur brings with it. the result of this is either a failed business, or a complete rejection of the implementation of your idea.

Features of the IP status

First of all, we note that the legal status of an individual entrepreneur has a dual nature, therefore, the norms of legislation applicable to individuals, as well as business entities, are simultaneously applied to it.

This duality is caused by the fact that a citizen who has expressed a desire to carry out entrepreneurial activity receives such a right, but at the same time he does not create a new economic entity and, to a certain extent, receives a more extensive list of civil rights.

Features of IP activities

The most significant right in acquiring the status of an individual entrepreneur is the ability of a citizen to carry out any business activity that is not prohibited by law, which allows you to make a profit.

At the same time, a number of duties are assigned to him, the fulfillment of which provides for the legal status of an individual entrepreneur. For example, on the payment of mandatory tax payments, fees and contributions to off-budget funds.

At the same time, in many legal relations, an individual entrepreneur acts on the basis of the norms of legislation for individuals. For example, if he uses for commercial purposes vehicles, which are issued to him, then he also pays the transport tax as an individual, in the manner established for this category of taxpayers.

There is also no distinction in relation to other property of a citizen-entrepreneur. For example, in the event of his bankruptcy, everything that belongs to the entrepreneur is included in the bankruptcy estate, regardless of the purpose for which this or that property was used.

Peculiarities of judicial protection of the rights and interests of individual entrepreneurs

Another feature in the status of an individual entrepreneur lies in the options for judicial protection of his interests. Thus, the protection of the rights of individual entrepreneurs, as a business entity, is carried out in Arbitration courts. And disputes arising from civil law relations of an entrepreneur as a citizen are subject to consideration in courts of general jurisdiction. Therefore, it is extremely important, in the perspective of litigation, to determine on the basis of what an individual entrepreneur acts in a given situation, or rather, as someone, a citizen or an entrepreneur. Depending on this, a further scheme for the protection of rights and interests is being built.

Features of the civil law status of an individual entrepreneur

Note that on this moment there is no normative legal act that would regulate in detail the civil legal status of an individual entrepreneur. Meanwhile, attempts to prepare such a bill have been made repeatedly, both at the level legislature, and in the form of initiatives from various public organizations. In a number of regions, at the local level, local legislative acts, which emphasize the special position of citizens with the status of individual entrepreneurs. First of all, these legal documents are related to measures to support small businesses.

Nevertheless, the adoption of a single law at the federal level, which would legislate the specifics of the legal status of individual entrepreneurs, would greatly facilitate life, both for the entrepreneurs themselves and for their counterparties and government bodies. Until then, it is necessary to be guided by many normative documents, which contain provisions regarding the status and features of the work of the IP.

For a detailed disclosure of all the nuances of the position of a citizen registered as an individual entrepreneur, it makes sense to consider all the strengths and weak sides such a position. By the way, it is this analysis that best reveals the features of the legal status of an individual entrepreneur.

Benefits of being an individual entrepreneur

p> Note that all the advantages of registering a citizen as an individual entrepreneur can be divided into two groups:

advantages over the usual position of a citizen;
advantages of an individual entrepreneur in comparison with other organizational and legal forms of entrepreneurial activity.

Advantages of individual entrepreneurs over ordinary citizens

In comparison with general civil rights, the civil legal status of an individual entrepreneur significantly expands the possibilities of a citizen. Most importantly, he is given the right to conduct entrepreneurial activities. A citizen who is not registered as an individual entrepreneur does not have the right to carry out any commercial operations aimed at making regular profits. Otherwise, he may be held liable, depending on the consequences of criminal or administrative.

In the field of taxation, an individual entrepreneur is exempt from paying personal income tax, which is mandatory for all citizens of the Russian Federation to pay on most types of income received.

Advantages over legal entities

An individual entrepreneur has even more advantages compared to legal entities, which are also created for profit in the course of entrepreneurial activity. For example, the costs of registering an individual entrepreneur are minimal, there is no need to prepare many documents, pay authorized capital, search for a legal address. In the process of carrying out its activities, an entrepreneur can do without such mandatory for legal entities. entities attributes like checking account and seal. Tax legislation provides for individual entrepreneurs more tax regimes, and administrative - a smaller amount of penalties.

The organizational and legal form of an individual entrepreneur allows him to independently manage all the income received in the process of entrepreneurial activity.

The mode of use of property, which an individual entrepreneur can use both for commercial purposes and for his own needs, has also been significantly simplified. By the way, family members of an entrepreneur also have the right to dispose of property, including those used in their business activities.

Meanwhile, commercial activity not the only thing a sole trader can do. The legislation does not restrict his right to work for hire, with the exception of certain positions, to be the founder of legal entities, the founder or member of public organizations, to enter into various legal relations as an individual.

Disadvantages of IP status

At the same time, the acquisition of the status of an individual entrepreneur imposes certain obligations and restrictions on a citizen. We have already noted that from the moment of registration of an individual entrepreneur, a citizen is obliged to make payments established by law to extra-budgetary funds and taxes. In addition, he must regularly submit the established reporting forms provided for business entities. And when using hired personnel, perform the duties of a tax agent for the transfer of mandatory payments from the income of individuals.

Restrictions of individual entrepreneurs

There are also certain restrictions for persons with the status of individual entrepreneurs. For example, they cannot be accepted into the state civil or other service. In addition, there are certain restrictions that directly relate to the implementation of entrepreneurial activities. So, there is a certain list of activities, the implementation of which is closed to individual entrepreneurs.

Cons compared to legal entities

We also note that situations of refusal of a transaction with an individual entrepreneur in favor of a legal entity are not uncommon, since for many managers and business owners, as well as ordinary citizens, the status of a legal entity. face is more attractive than IP. The reasons for this opinion are different and require a separate detailed discussion.

However, the most significant drawback of the status of an individual entrepreneur, which most often leads to the rejection of such an organizational and legal form, is that an individual entrepreneur is liable for his obligations with all the property that belongs to him by right of ownership. The Civil Code provides that an individual entrepreneur carries out his activities at his own risk. As a result, failures in business can lead not only to its loss, but also to the loss of most of the property of the entrepreneur's family.

What other disadvantages are there?

The right of ownership of individual entrepreneurs has another nuance, which for some reason is rarely paid attention to in practice. The fact is that if an entrepreneur is married, then all his income received in the course of entrepreneurial activity, as well as property acquired from them, in case of divorce, are subject to division between spouses.

As a general rule, this division is carried out in equal shares, while property used for commercial purposes is also subject to division. Moreover, even if one of the spouses acquired the status of an entrepreneur before marriage, then all income received from entrepreneurial activity after marriage will be recognized as the common property of the spouses. The only exception is if a marriage contract is concluded between the spouses, which contains a provision on the division of income of the spouse who has the status of an individual entrepreneur.

In addition, an individual entrepreneur is not entitled, without the consent of the spouse, to dispose of real estate that was acquired during marriage, including if this real estate is used solely for the purpose of carrying out entrepreneurial activities.

Summary

Thus, the legal capacity of an individual entrepreneur is a kind of “extension” of the rights of an ordinary citizen. This status provides him with an opportunity for wider opportunities in economic activity, but at the same time requires him to comply with certain requirements not only in the process of entrepreneurial activity, but also in everyday life.

For example, it is not uncommon for an entrepreneur, who has the habit of spending part of the profits from a business for his own needs, to do the same with earmarked funds received as part of small business support or loan processing. And if in the first case there are no restrictions on the use of profits, then in the second situation, this may lead to Negative consequences further.

By the way, the mistake of many novice entrepreneurs often lies not in the reasonable expenditure of proceeds. As a rule, not a very psychological attitude works: “my profit, I do what I want”. As a result, the business is left without financial support, and often deprived of the opportunity to make the necessary payments.

This problem is not unique to our country. In many countries where the legislation provides for a legal position similar to that of an individual entrepreneur, applicants for this status undergo psychological testing, which allows them to determine a person’s ability to run their own business.

In Russia, for the time being, the conditions for acquiring the status of an individual entrepreneur do not provide for such mandatory procedure Perhaps that is why people who are deprived of an entrepreneurial spirit often get into business. As a result, many good ideas remain unfulfilled, and a person is disappointed in his abilities. And if the loss of the status of an individual entrepreneur is also accompanied by serious debt repayment costs, then tragedies are not uncommon here.

All this makes you think again and firmly weigh your capabilities in the implementation of your plans, and if you have faith in yourself and it is justified, then it makes sense to take risks and open your own business.

Economy, Business

Article 23 of the Civil Code determines that any citizen has the right to engage in entrepreneurial activities without forming a legal entity from the moment of state registration as an individual entrepreneur. The head of a peasant (farm) economy is recognized as an entrepreneur from the moment of state registration of the peasant (farm) economy. On the territory of the Russian Federation, foreigners and stateless persons may also engage in entrepreneurial activities without forming a legal entity.

A person who has reached the age of 18 (who has become fully capable) can engage in entrepreneurial activities. However, persons over the age of 16 can be recognized as fully capable with the consent of their parents or by a court decision (emancipation) and engage in entrepreneurial activities without waiting for the age of majority.

It is forbidden to engage in such activities to persons deprived of this right by a court decision, state and municipal employees, incompetent.

In accordance with article 11 of part 1 tax code Russian Federation, individual entrepreneurs are individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, as well as heads of peasant (farmer) households. At the same time, individuals who, in violation of the requirements of the law, have not registered as individual entrepreneurs and conduct entrepreneurial activities, will be considered individual entrepreneurs in tax legal relations, i.e. they are not entitled to refer to the fact that they are not registered as an individual entrepreneur in the event of disputes with the tax authorities.

The status of an individual entrepreneur is dual. On the one hand, the entrepreneur is subject to the rules governing the legal status of a citizen (individual). On the other hand, engaging in entrepreneurial activity brings an individual entrepreneur closer in status to a legal entity. So, for entrepreneurial activities of citizens carried out without forming a legal entity, the norms of the Civil Code, which regulate the activities of legal entities that are commercial organizations, are accordingly applied, unless otherwise follows from the law, other legal acts or the essence of the legal relationship.

However, in general, the differences between legal entities and individual entrepreneurs are significant, especially in terms of property. Since an individual entrepreneur is a natural person, all property belongs to him personally and, when conducting entrepreneurial activities, is not divided in the legislation into home property and business property. Accordingly, no one can ask the individual entrepreneur where he got the equipment on which he works. But at the same time, if the founders of an LLC are liable for the debts of their organization only in the amount of their share in authorized capital, then the individual entrepreneur is liable for business debts with all his property (except short list property that cannot be foreclosed).

In tax legislation, the difference between organizations and individual entrepreneurs is even more significant. Despite the fact that organizations and individual entrepreneurs have general taxes (STS, UTII, UAT, MET, VAT, etc.), the individual entrepreneur pays part of the taxes as an ordinary individual and does not have, for example, corporate income tax (individuals pay tax on income of individuals), tax on property of organizations (individuals pay tax on property of individuals, and only on real estate), transport tax is also paid by individual entrepreneurs as individuals, according to notifications sent from the tax inspectorate. IP also has a special tax regime, which can only be used by individual entrepreneurs - the patent taxation system (PSN).

Because Since an individual entrepreneur has all his personal property, then he does not have a problem how to put money “in his pocket”. Unlike commercial organization, where the founders, in order to receive money from the established organization, need to distribute profits and pay personal income tax on dividends, the individual entrepreneur has all the money earned already, and when shifting the entrepreneurial proceeds into his pocket, he does not have to pay additional taxes, except for those already paid by him as an individual entrepreneur with entrepreneurial income.

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