Definition of individual entrepreneur: legal or natural person. The difference between the civil legal status of an individual entrepreneur and the status of a legal entity

Often people who have opened their own business cannot clearly understand their new legal status. Whether the individual entrepreneur remained an individual or became a legal entity.

The current legislation does not have extremely clear formulations on this matter, which seriously complicates the explanation of the current legal situation.

In essence, an individual entrepreneur remains an individual (hereinafter referred to as a PE), but at the same time is endowed with the rights of a legal entity (LE). This is how his dual position develops. The entrepreneur continues to enjoy all the rights of a citizen of the Russian Federation, as in the Federal Law. A legal entity cannot exercise such rights under any circumstances.

At the same time, an individual entrepreneur receives broad rights as a business entity. In many ways they are similar to the rights of legal entities. Since this combination of rights is permanent, in a sense, they are mixed.

An entrepreneur who sells goods near a polling station on election day uses the opportunities of a legal entity for entrepreneurial activities. However, he can go to this polling station at any time and exercise his FL right by voting for any candidate.

Thus, an individual entrepreneur remains a sole proprietor, but he has a very significant part of the powers inherent in a legal entity. It is impossible to call an individual entrepreneur a legal entity, since the current law contains a direct answer to the question of its status. The Civil Code of the Russian Federation, without reservations, calls any individual entrepreneur an individual. This formulation is quite clear and does not require clarification.

The law often emphasizes that the duality of the position of an individual entrepreneur lies in the fact that he enjoys the rights of both a sole proprietor and a legal entity. The fact that an individual entrepreneur refers specifically to individuals, even if he has a special status, is not disputed by any legislative act.

Most types of activities that a legal entity has the right to engage in are available to an individual entrepreneur. In addition, there are types of activities that can only be carried out by citizens with the status of Individual Entrepreneur (for example, the provision of private detective services). An individual entrepreneur can act as a founder of a legal entity, like a sole proprietor. He has the right to engage in paid work. Often, individual entrepreneurs enter into agreements with other persons as individuals and not as legal entities. This allows you to significantly reduce the amount of taxes that must be paid when making such transactions.

Thus, the status of an individual entrepreneur opens up wide opportunities for its owner. It is significantly more advantageous than the position of an ordinary individual or legal entity.

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Why is it necessary to open an individual entrepreneur or legal entity?

Any activity that generates systematic income is considered entrepreneurial. For example, an individual who is constantly engaged in paid car repairs of other people’s vehicles in the personal garage of a garage-construction cooperative is conducting entrepreneurial activity.

In order not to break the law, you should register an individual entrepreneur or legal entity. Otherwise, the citizen may be brought to administrative (Clause 1 of Article 14.1 of the Code of Administrative Violations of the Russian Federation (CAO) or criminal (Part 1 of Article 171 of the Criminal Code of the Russian Federation) liability.

Control in this area is exercised by the Federal Tax Service (FTS). And you shouldn’t hope that no one will find out about you and that nothing will happen to you for it. Neighbors and competitors, as a rule, keep a watchful eye on each other and often write appropriate statements about receiving unearned income.

What is the significant difference between an individual entrepreneur and an LLC?

Question about differences between individual entrepreneurs and LLCs most often faced by budding entrepreneurs. These forms are the most common in the field of small and medium-sized businesses. It is a mistake to think that one is worse than the other. The choice is made based on specific tasks.

There are several factors that will help determine the feasibility of registering as an individual entrepreneur or LLC:

• the number of people planning to do business;
• the scale of the business being opened;
• types of activities of the future enterprise.

In accordance with the answers to these questions, a decision is made on the most appropriate form of organization.

However, it should be understood that there is one fundamental difference between an individual entrepreneur and an LLC. Despite the fact that an individual entrepreneur works on an equal basis with a legal entity, the entrepreneur is first and foremost a citizen and therefore bears personal responsibility (including his property) for all decisions and actions of the individual entrepreneur. And an LLC is an independent player in the market, acting as a screen for the founders: they will not bear any personal responsibility.

Comparative table: what is the difference between an individual entrepreneur and an LLC

Recommendations for choosing a legal form for certain types of activities: trade, construction, transportation

If we return to the question, What is better: individual entrepreneur or LLC?, in relation to specific types of activities, the scope of the article will not allow us to cover them all. But in the business world there are popular industries, examples of which can show the general course of reasoning.

Trade

For retail trade of non-food products, even if it is a large store with an area of ​​more than 150 sq. m, individual entrepreneur is the most attractive form due to the ease of opening and the ability to apply the patent taxation system.

Owners of small grocery stores may also like the organizational ease of individual entrepreneurs. However, for large supermarkets, and especially for the sale of alcohol, an LLC will be required.

Construction

This is a huge field of activity that includes various types of construction and installation work, such as preparation of a construction site, construction of buildings, communications, repairs and finishing, etc. To obtain the right to conduct many of them, instead of abolished licensing, membership in self-regulatory design organizations is required , research, construction.

Theoretically, nothing prevents an individual entrepreneur from complying with all the requirements and becoming a participant in this market. But we should not forget that construction is associated with very large capital investments by customers, and therefore the same obligations on the part of individual entrepreneurs. In this case, the individual entrepreneur, as mentioned above, is responsible for his activities with personal property.

Transportation

Those wishing to engage in passenger and cargo transportation, as a rule, register an individual entrepreneur. The reason is that they prefer to do this business individually, using their own transport. But even if a company is organized, for example a taxi, the priority still goes to the individual entrepreneur. It is in this case that you can take full advantage of all the concessions in the field of abolishing accounting and simplifying financial reporting.

If you plan to engage in large-scale transportation, then the opening is associated with large cash injections from several individuals to create a fleet of vehicles. In this case, naturally, an LLC is opened.

Thus, at first glance, an individual entrepreneur is more profitable than an LLC for many reasons - due to the simplicity of organizational issues and simplified reporting. But upon careful analysis, it becomes obvious that, for example, the tax burden (the most pressing issue) depends not on the form of business organization, but on the type of activity.

By the way, there is a fairly strong idea that potential partners often prefer to communicate with organizations, which is why LLC is a more prestigious form. This is wrong. In fact, suppliers, clients and resellers make no difference at all with whom they deal. The main thing is that the counterparty is respectable.

The following conclusion can be drawn. If several people plan to run the business, then they will definitely have to register an LLC. If you have large-scale plans for the future regarding further expansion by attracting investments, an LLC is also recommended. If the case is individual, intimate, then individual entrepreneur is the best form.

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○ The concept of an individual entrepreneur.

From the point of view of legislation, an individual entrepreneur is not a legal entity. This follows from the definition.

Art. 11 Tax Code of the Russian Federation:
Individual entrepreneurs are individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, heads of peasant (farm) households. Individuals carrying out entrepreneurial activities without forming a legal entity, but who have not registered as individual entrepreneurs in violation of civil law requirementslegislation of the Russian Federation, when performing the duties assigned to them by this Code, do not have the right to refer to the fact that they are not individual entrepreneurs.

In accordance with this text of legislation, an individual entrepreneur is an individual who conducts commercial activities. This is quite clear. However, the legal status of an individual entrepreneur implies some similarity with the status of a legal entity. Let us further understand the similarities and differences between these concepts.

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○ Signs of individuals and legal entities.

An individual is a person who has rights and obligations within the framework of the legal regulation of the state. An individual has certain characteristics:

• Identification is carried out by full name.
• There is no need to undergo additional registration, except for obtaining a birth certificate and a general passport.
• Availability of the right to carry out economic transactions with other persons and organizations.

A legal entity is an organization registered in the register and having separate property to which it is liable for its obligations.

Art. 48 Civil Code of the Russian Federation:

1. A legal entity is an organization that has separate property and is responsible for its obligations, can, in its own name, acquire and exercise civil rights and bear civil obligations, and be a plaintiff and defendant in court.
2. A legal entity must be registered in the Unified State Register of Legal Entities in one of the organizational and legal forms.
3. Legal entities to whose property their founders have proprietary rights include state and municipal unitary enterprises, as well as institutions.

Legal entities have the following characteristics:

• Availability of registration in a unified register.
• Certain property owned.
• Separate name and registered address.
• The presence of a structured team with managers and subordinates.
• The right to obtain licenses for certain types of activities that are not available to other forms.
• Mandatory presence of a stamp and a bank account.

A legal entity is responsible for conducting activities with the property belonging to it. This sign is identical to the responsibility of an individual and an individual entrepreneur.

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○ Comparison of individual entrepreneurs and ordinary individuals.

In fact, an individual and an individual entrepreneur have many common characteristics. However, conducting certain types of business activities without registration is not allowed. Let us tell you what the similarities and differences are between an individual entrepreneur and an individual.

✔ General signs.

Common features include the following facts:

1. Legally, an individual entrepreneur and an individual are equal.
2. This is a specific person with a full name and identification number.
3. The place of permanent registration is the same.
4. An individual entrepreneur can act as a citizen when concluding transactions.
5. Individuals and individual entrepreneurs have the right to conduct business transactions, enter into transactions, draw up the necessary documents and perform legally significant actions.
6. In case of debt formation, individuals and individual entrepreneurs are liable with property in their ownership.

From the point of view of legislation, an individual entrepreneur is the status of an individual. However, there is still a difference between these concepts.

✔ Distinctive features.

The difference between an individual entrepreneur and an individual lies in the income tax system and the permissible scope of activity. For example, an individual who has the status of an individual entrepreneur cannot be an employee and at the same time conduct business activities. A person, being an individual entrepreneur, can be an employee, but as an individual.

Many types of commercial activities are not available to an individual who does not have individual entrepreneur status. So, for example, he cannot open a pavilion and sell any goods there or provide household services to the population.

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○ Comparison of individual entrepreneurs and legal entities.

Quite often you can find identification of the statuses of individual entrepreneurs and legal entities. This is not entirely correct from the point of view of legislation, but nevertheless there are certainly similarities between these statuses. Let's look at the similarities and differences.

✔ Community in activities.

The commonality of activities lies in the following factors:

• The purpose of creation is to conduct business and make a profit.
• The need to go through the state registration procedure.
• Availability of taxation systems - simplified tax system, UTII, etc.
• Possibility of employment of employees in accordance with the Labor Code of the Russian Federation.
• They may have a bank account (not required for individual entrepreneurs).
• In court there can be a plaintiff and a defendant.

This is where the similarity ends. Let's look at the differences between individual entrepreneurs and legal entities.

✔ Distinctive characteristics.

The main differences are as follows:

• An individual entrepreneur is a specific person, a legal entity is an organization.
• Registration of a person as an individual entrepreneur is carried out at the place of permanent residence, and a legal entity is registered at the legal address.
• An individual entrepreneur operates independently, a legal entity is a group of people (however, both of them can be employers).
• The property of the organization and its founders is separate from each other, the individual entrepreneur, in turn, is liable with all his property, as an individual.
• Individual entrepreneur does not have its own name.
• A legal entity is required to have a seal and a bank account; for individual entrepreneurs, both are advisory in nature.
• The activities of a legal entity are impossible without the presence of statutory documents.

Organizations have the right to conduct commercial activities in any area that does not contradict the law. There are certain restrictions for entrepreneurs.

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○ What does the tax office say?

From the point of view of tax legislation, individual entrepreneurs are individuals with a special status. However, the Federal Tax Service provides preferential tax systems for individual entrepreneurs with minimal reporting.

Individual entrepreneurs are in a special position. Separate norms and rules are being developed for them.

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✔ Can an individual entrepreneur be converted into a legal entity?

There is no direct prohibition on transformation in the legislation, that is, it is allowed. To do this, you need to contact the territorial branch of the Federal Tax Service and submit the relevant documents.

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1.4. How does an entrepreneur differ from a legal entity?

Having analyzed the norms of the current legislation, we can dwell on some differences between the procedure for carrying out business activities in the status of an individual entrepreneur and the procedure for carrying out business activities using any form of commercial organization.

In particular, the following differences can be distinguished:

A) when registering a legal entity, the founders make contributions on their own behalf to the property of the organization. This could be money, inventory or non-current assets. From this moment on, the property of a legal entity is accounted for separately from the property of the founders. Let's assume that the organization suffered losses. Creditors demand repayment of debts. A legal entity can pay off creditors only within the limits of its property. That is, to give away fixed assets, securities, goods, finished products, etc. The founder can sleep peacefully: the personal property of the founders cannot be taken for debts, since the organization is liable for debts only with its own separate property (Article 48 of the Civil Code RF). In order for a citizen to register as an individual entrepreneur, it is not necessary to form an authorized capital. But at the same time, an individual registered as an individual entrepreneur is liable for his obligations (including those assumed as an individual entrepreneur) with all his property (Article 24 of the Civil Code of the Russian Federation).

B) upon registration, an individual entrepreneur cannot, of his choice, rent an office in any district of the city and register with the tax office at his location, unlike a legal entity.

State registration of a legal entity is carried out at the location indicated by the founders in the application for state registration of a permanent executive body, in the absence of such an executive body at the location of another body or person entitled to act on behalf of the legal entity without a power of attorney.

State registration of an individual entrepreneur is carried out at his place of residence (clause 3 of article 8 of Law No. 129-FZ). Place of residence - a residential building, apartment, room, residential premises of a specialized housing stock (service residential premises, residential premises in a dormitory, residential premises of a mobile fund, residential premises in a building of the social service system and others) or other residential premises in which the citizen is constantly or primarily lives as an owner, under a lease (sublease), a lease agreement for specialized residential premises, or on other grounds provided for by the legislation of the Russian Federation, and in which he is registered at the place of residence (paragraph 8 of Article 2 of the Law of the Russian Federation of June 25, 1993 No. 5242-1 “On the right of citizens of the Russian Federation to freedom of movement, choice of place of stay and residence within the Russian Federation”).

Therefore, in order to obtain the status of an individual entrepreneur, a citizen must submit the necessary documents to the tax office at the place of residence. But it should be noted that, for example, the registration authority of Moscow is the Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow. Therefore, both individual entrepreneurs and organizations must submit all necessary documents there when registering. If a decision is made on state registration of a legal entity or individual entrepreneur, the registering (tax) authority (Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow) makes a corresponding entry in the database of the Unified State Register of Individual Entrepreneurs (USRIP).

C) individual entrepreneurs may not engage in all types of business activities that organizations can carry out. Types of business activities that can only be carried out by organizations and cannot be carried out by individual entrepreneurs include, for example:

– activities related to the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products in the Russian Federation in accordance with Law No. 171-FZ. Thus, supplies of ethyl alcohol are carried out only by organizations that have licenses for the production, storage and supply of produced ethyl alcohol, including denatured alcohol (clause 4 of article 9 of Law No. 171-FZ). Also, Law No. 171-FZ establishes that the production and circulation of alcoholic (with the exception of retail sales of beer and beer drinks, cider, poire, mead) and alcohol-containing food products is carried out only by organizations (clause 1 of Article 11 of Law No. 171-FZ). Retail sales of alcoholic products (except for beer and beer drinks) are carried out by organizations (clause 1 of Article 16 of Law No. 171-FZ). In addition, Law No. 171-FZ establishes that the production and circulation (except for retail sales) of alcoholic products with an ethyl alcohol content of more than 15 percent of the volume of finished products (except for the production of vodka), state-owned enterprises, as well as other organizations with a paid-up authorized capital (authorized capital) of at least 10 million rubles, have the right to carry out production. The production of vodka has the right to be carried out by state-owned enterprises, as well as other organizations that have a paid-up authorized capital (authorized fund) in the amount of no less than 80 million rubles. (Clause 2.1, Clause 2.2, Article 11 of Law No. 171-FZ);

– types of activities falling within the scope of Law No. 61-FZ. For example, manufacturers of medicines can only be organizations that produce medicines in accordance with the requirements of Law No. 61-FZ;

- activities that arise when pawnshops provide loans to citizens on the security of things belonging to citizens and activities for storing things (Federal Law of July 19, 2007 No. 196-FZ “On Pawnshops” (hereinafter referred to as Law No. 196-FZ)). Thus, a pawnshop can only be a legal entity - a specialized commercial organization, the main activities of which are providing short-term loans to citizens and storing things (Clause 1, Article 2 of Law No. 196-FZ);

– microfinance activities. Thus, microfinance activity is the activity of legal entities that have the status of a microfinance organization, as well as other legal entities that have the right to carry out microfinance activities to provide microloans (microfinance) (clause 1, clause 1, article 2 of the Federal Law of July 2, 2010 No. 151-FZ “On microfinance activities and microfinance organizations”);

– activities related to the organization and conduct of gambling on the territory of the Russian Federation. Thus, the organizer of a gambling game can only be a legal entity engaged in organizing and conducting gambling (Clause 5, Article 4 of the Federal Law of December 29, 2006 No. 244-FZ “On state regulation of activities for organizing and conducting gambling and on amendments to certain legislative acts of the Russian Federation" (hereinafter referred to as Law No. 244-FZ));

– private detective activity. Thus, an individual cannot register as an individual entrepreneur to carry out private security activities. Private security activities can only be carried out by private security organizations. In accordance with Law No. 2487-1, a private security organization is an organization specifically established to provide security services, registered in accordance with the procedure established by law and licensed to carry out private security activities. A private security guard can be a citizen of the Russian Federation who has reached the age of 18, has undergone professional training to work as a private security guard, has passed a qualification exam, received a private security guard certificate and is working under an employment contract with a security organization (Clause 2 of Article 1.1 of Law No. 2487 -1). Conversely, Law No. 2487-1 does not contain such a concept as a “detective organization” or a “private detective agency.” A private detective can only be a citizen of the Russian Federation, registered as an individual entrepreneur, who has received a license in the prescribed manner to carry out private detective (detective) activities and provides services provided for in Part 2 of Art. 3 of Law No. 2487-1.

D) before the beginning of 2012, there was another difference in the activities of individual entrepreneurs and organizations. We are talking about the procedure for carrying out cash transactions. Previously, the Procedure for conducting cash transactions in the Russian Federation was in force, which was approved by letter of the Central Bank of October 4, 1993 No. 18. It applied to enterprises, associations, organizations and institutions, regardless of organizational and legal forms and scope of activity, and individual entrepreneurs were not mentioned in it . In this regard, explanations were given that the previously existing procedure for conducting cash transactions in the Russian Federation did not apply to individual entrepreneurs (letter of the Ministry of Finance of Russia dated March 2, 2011 No.

No. 03-01-10/1-15; letter of the Federal Tax Service of Russia dated June 14, 2011 No. AS-4-2/9386@). Also, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 29, 2010 No. 1411/10, it was determined that the legislation in force at that time did not provide for the obligation of individual entrepreneurs to post cash to the cash desk and to comply with the procedure for storing available funds. In the Regulations on the Procedure for Conducting Cash Operations (which was approved by the Bank of Russia on October 12, 2011 No. 373-P), which was in force after the Procedure for Conducting Cash Operations in the Russian Federation (approved by the letter of the Central Bank dated October 4, 1993 No. 18), it was established that its effect also applied to individuals carrying out entrepreneurial activities without forming a legal entity.

Thus, from January 1, 2012, individual entrepreneurs were required to comply with the procedure for conducting cash transactions, determined by the Regulations on the procedure for conducting cash transactions, including:

– determine the cash balance limit;

– store cash in bank accounts in banks in excess of the established cash balance limit;

– process cash transactions with incoming cash orders and outgoing cash orders;

– ensure the availability of cash documents and other documents drawn up when conducting cash transactions within the time limits established by the legislation on archival affairs in the Russian Federation;

- maintain a cash book.

However, the Regulations on the procedure for conducting cash transactions lost force due to the adoption of the Bank of Russia Directive No. 3210-U dated March 11, 2014 “On the procedure for conducting cash transactions by legal entities and the simplified procedure for conducting cash transactions by individual entrepreneurs and small businesses” (hereinafter - Instruction on the procedure for conducting cash transactions for legal entities and individual entrepreneurs).

In accordance with clause 4.1 of the Instructions on the procedure for conducting cash transactions for legal entities and individual entrepreneurs, individual entrepreneurs must conduct cash transactions.

At the same time, in accordance with clause 4.1 and clause 4.6 of the Instructions on the procedure for conducting cash transactions of legal entities and individual entrepreneurs, individual entrepreneurs who, in accordance with the legislation of the Russian Federation on taxes and fees, keep records of income or income and expenses and (or) other objects of taxation or physical indicators, characterizing a certain type of business activity:

a) may not prepare cash documents;

b) may not keep a cash book.

D) legal entities must have an independent balance sheet or budget and must keep accounting records. In contrast, individual entrepreneurs only keep records of income and expenses to calculate taxes that should be paid to the budget. Thus, an individual entrepreneur does not have to keep accounting records, he is obliged to keep records of income and expenses and business transactions in the appropriate accounting book. On January 1, 2013, the new Federal Law of December 6, 2011 No. 402-FZ “On Accounting” (hereinafter referred to as Law No. 402-FZ) came into force. It applies to the following persons (economic entities):

– commercial and non-profit organizations;

– state bodies, local government bodies, management bodies of state extra-budgetary funds and territorial state extra-budgetary funds;

– Central Bank of the Russian Federation;

– individual entrepreneurs, as well as lawyers who have established law offices, notaries and other persons engaged in private practice;

– branches, representative offices and other structural divisions of organizations established in accordance with the legislation of foreign states located on the territory of the Russian Federation, international organizations, their branches and representative offices located on the territory of the Russian Federation, unless otherwise provided by international treaties of the Russian Federation.

An economic entity is obliged to keep accounting records in accordance with Law No. 402-FZ, unless otherwise established by Law No. 402-FZ. However, Law No. 402-FZ establishes that accounting in accordance with Law No. 402FZ may, in particular, not be carried out by an individual entrepreneur or a person engaged in private practice if, in accordance with the legislation of the Russian Federation on taxes and fees, they keep records of income or income and expenses and (or) other objects of taxation in the manner established by the specified legislation. The fact that an individual entrepreneur calculates the tax base at the end of each tax period on the basis of accounting data for income and expenses and business transactions is indicated by clause 2 of Art. 54 of the Tax Code of the Russian Federation. Thus, from January 1, 2013, an individual entrepreneur may also not keep accounting records, since he is obliged to keep records of income and expenses and business transactions in the Accounting Book.

It should be noted that some regulations that relate to the procedure for filling out calculations and other forms of documents contain provisions that they are filled out on the basis of accounting data. At the same time, no distinction is made regarding the procedure for filling out these forms by organizations or individual entrepreneurs. So, for example, in para. 2 clause 1 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory pension insurance to the Pension Fund of the Russian Federation and for compulsory medical insurance to the Federal Compulsory Medical Insurance Fund by payers of insurance premiums making payments and other remuneration to individuals (form RSV-1 PFR) (approved by Resolution of the Board of the Pension Fund of the Russian Federation dated January 16, 2014 No. 2p) it is stated that the basis for filling out the calculation in the RSV-1 PFR form is accounting and personnel records.

Similar provisions are indicated, for example, in clauses 7.10, 7.11, 7.17, 25 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity and for compulsory social insurance against accidents at work and occupational diseases, as well as expenses for the payment of insurance coverage (Form 4-FSS), approved by Order of the FSS of the Russian Federation dated February 26, 2015 No. 59.

Also paragraph 1 of Art. 11 of the Federal Law of April 1, 1996 No. 27-FZ “On individual (personalized) accounting in the compulsory pension insurance system” indicates that personalized accounting information about paid insurance premiums, which policyholders submit to the territorial body of the Pension Fund of the Russian Federation, is formed on the basis of data accounting.

E) some articles of the Code of Administrative Offenses of the Russian Federation, which provide for administrative liability measures for offenses in the field of taxes and fees, which apply to organizations, cannot be applied to individual entrepreneurs. Thus, certain measures of administrative liability are not applied to individual entrepreneurs, provided, in particular:

- Art. 15. 3 of the Code of Administrative Offenses of the Russian Federation for violating the deadline for registration with the tax authority;

- Art. 15.4 for violation of the deadline for submitting information about opening and closing an account with a bank or other credit organization;

- Art. 15.5 for violation of deadlines for submitting a tax return;

- Art. 15.6 for failure to provide information necessary for tax control;

- Art. 15.7 for violation of the procedure for opening an account for a taxpayer;

- Art. 15.8 for violation of the deadline for the execution of an order to transfer a tax or fee (contribution);

- Art. 15.9 for failure by the bank to comply with the decision to suspend transactions on the accounts of the taxpayer, fee payer or tax agent;

- Art. 15.11 for gross violation of the rules of accounting and presentation of financial statements.

Individual entrepreneurs cannot be brought to administrative liability established by the above-mentioned norms as officials. This follows from the note to Art. 15.3 Code of Administrative Offenses of the Russian Federation. This rule also applies to cases where an individual entrepreneur, without concluding employment contracts to perform the duties of a manager, chief accountant and other officials, himself exercises the rights and obligations of these officials (clause 23 of the resolution of the Plenum of the Supreme Court of the Russian Federation of October 24, 2006 No. 18 “On some issues that arise for courts when applying the Special Part of the Code of the Russian Federation on Administrative Offences”);

i) the restrictions established for the start of application of the simplified tax system by organizations and individual entrepreneurs differ. This information is presented in more detail in paragraph 13.2 of this Book.

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The Civil Code of the Russian Federation and other legislative acts provide a clear definition of the concepts of a legal entity and an individual entrepreneur. They have their own characteristics.

Key Similarities and Differences

To understand the difference between the concepts of an individual entrepreneur and a legal entity, you need to understand legal essence of these definitions.

Under IP means an individual who carries out his activities independently and on his own behalf, as well as duly registered.

Entity is an organization that has separate property and is independently responsible for its obligations.

These two concepts are united only by the fact that both conduct business activities, but in the registration procedure, structure, taxation and other legal aspects they are different.

Individual entrepreneurs are registered under their full name and place of residence, and a legal entity also has a legal address, which is indicated during the registration process.

The main difference between an individual entrepreneur and a legal entity is that the latter has the Constituent Documents or Charter, within the framework of which it carries out its activities. Any changes must be made without fail. Individual entrepreneurs, on the other hand, have a more free form of business, changing which does not require a procedure for revising the Charter.

The disadvantages of the business system of an individual entrepreneur compared to a legal entity include:

• limited types of activities (license), for example, the first cannot engage in both retail and wholesale sales of alcoholic beverages, medicines, etc.;
• The personal participation of an individual is required; no one has the right to represent the interests of an individual entrepreneur.

The status of a legal entity presupposes the presence of an executive body that is actually involved in the management and activities of the organization. And the individual entrepreneur is managed by the individual who created it.

The address (place) of a legal entity is recognized as legal address specified in registration documents(often occurs when the specified address does not coincide with the real location of the company). Registration of the location of an individual entrepreneur is carried out at the place of residence of the individual or at the place of his stay.

Reorganization of an individual entrepreneur’s business compared to a legal entity also has a number of preferential benefits. To change the required data, you must provide an application and a document (a copy thereof) confirming the change.

Rights of a legal entity

Any participant in legal relations has a set of rights and obligations. Legal entities have civil rights that correspond to the goals of their activities. This set of rights is spelled out in the Charter Document. Legal capacity can only be limited by law.

Status of an individual

An individual is a citizen who has the corresponding rights and responsibilities. He acquires them from the moment of birth and uses them all his life. One of these rights is, after which the laws regarding the activities of an individual entrepreneur, as well as any others relating to individuals separately, are applied to the citizen.

Why is there confusion in terms?

Firstly, from the definition of an individual entrepreneur it is already clear that this is an individual who is responsible for his obligations independently. That is, everything is entrusted to a certain person, which cannot be said about a legal entity, where the company bears all responsibility. The confusion occurs due to the fact that an individual entrepreneur has the same attributes as a legal entity, namely, a seal, a current account, etc.

Cases when an individual entrepreneur acts as a legal entity

Despite the obvious differences between the two concepts, there are options in which the actions of an individual entrepreneur are similar to a legal entity. Such cases include:

1. Hiring workers.
2. Opening bank accounts and using them for business purposes.
3. Using a seal to authenticate documents.

Advantages and disadvantages

The advantage of an LLC is that none of the founders bears the full responsibility liability for the company's obligations. For example, compensation for losses is determined in the amount of the share contributed by the founder to the authorized fund of the company.

If an LLC is declared bankrupt, foreclosure on debt obligations is applied only to the property contributed by the founder to the company's fund.

Individual entrepreneur as a person directly conducting business, fully liable for all debts, formed during the working period. In this case, debt collections are applied to all property owned by the individual entrepreneur, with the exception of property that is not subject to seizure and recourse to repay the debt.

In addition to all of the above, an individual has the right to bequeath all of his property to another person.

In daily activities, individual entrepreneurs and LLCs can use various tax regimes. First of all, this is a general taxation system, which is mainly used by enterprises due to the large turnover. Also, individual entrepreneurs use other special tax regimes: simplified, imputed, patent.

Any of the above systems implies taxation on profits received as a result of business activities.

In addition, companies are required to pay other additional taxes and fees depending on the type of activity. Among them are:

• gambling tax;
• tax related to excisable goods;
• fee for subsoil use;
• fee for the use of objects of flora and fauna, etc.

Enterprises pay additional taxes and insurance contributions on employee salaries.

Tax withheld from an employee's salary is income tax. For citizens of the Russian Federation the rate is 13%, for foreigners - 30%.

Insurance premiums are divided into the following types:

• pension fund (PFR);
• compulsory health insurance fund (FMS);
• Social Insurance Fund (SIF).

The contribution rate is 22%, 5.1% and 2.9% respectively.

An individual, when using the general taxation system, pays:

• tax on income from business activities;
• property tax if it is used in business;
• value added tax.

Also, an individual pays other mandatory contributions: health insurance, pension fund, insurance fund.

The legislative framework

At the legislative level, registration is regulated by the Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs”, the Civil Code, decrees of the Government of the Russian Federation, and other legal acts.

Learn more about LLCs and individual entrepreneurs in this video.

Often people who have opened their own business cannot clearly understand their new legal status. Whether the individual entrepreneur remained an individual or became a legal entity.

The current legislation does not have extremely clear formulations on this matter, which seriously complicates the explanation of the current legal situation.

In essence, an individual entrepreneur remains an individual (hereinafter referred to as a PE), but at the same time is endowed with the rights of a legal entity (LE). This is how his dual position develops. The entrepreneur continues to enjoy all the rights of a citizen of the Russian Federation, as in the Federal Law. A legal entity cannot exercise such rights under any circumstances.

At the same time, an individual entrepreneur receives broad rights as a business entity. In many ways they are similar to the rights of legal entities. Since this combination of rights is permanent, in a sense, they are mixed.

An entrepreneur who sells goods near a polling station on election day uses the opportunities of a legal entity for entrepreneurial activities. However, he can go to this polling station at any time and exercise his FL right by voting for any candidate.

Thus, an individual entrepreneur remains a sole proprietor, but he has a very significant part of the powers inherent in a legal entity. It is impossible to call an individual entrepreneur a legal entity, since the current law contains a direct answer to the question of its status. The Civil Code of the Russian Federation, without reservations, calls any individual entrepreneur an individual. This formulation is quite clear and does not require clarification.

The law often emphasizes that the duality of the position of an individual entrepreneur lies in the fact that he enjoys the rights of both a sole proprietor and a legal entity. The fact that an individual entrepreneur refers specifically to individuals, even if he has a special status, is not disputed by any legislative act.

Most types of activities that a legal entity has the right to engage in are available to an individual entrepreneur. In addition, there are types of activities that can only be carried out by citizens with the status of Individual Entrepreneur (for example, the provision of private detective services). An individual entrepreneur can act as a founder of a legal entity, like a sole proprietor. He has the right to engage in paid work. Often, individual entrepreneurs enter into agreements with other persons as individuals and not as legal entities. This allows you to significantly reduce the amount of taxes that must be paid when making such transactions.

Thus, the status of an individual entrepreneur opens up wide opportunities for its owner. It is significantly more advantageous than the position of an ordinary individual or legal entity.

Before identifying the differences between an individual entrepreneur and a legal entity, you need to understand these concepts, since the concept of “individual entrepreneur” has already been disclosed, it is necessary to establish the main features of a legal entity.

A legal entity is an organization registered in accordance with the procedure established by law, which has separate property in ownership, economic management or operational management and is liable for its obligations with this property, can, in its own name, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or estimate.

The procedure for registering an individual entrepreneur is simpler than that of a legal entity; it is carried out at the place of residence of the person who decided to register an individual business. Registration of a legal entity is carried out at the legal address of the main office. State registration fees for individual entrepreneurs are less than for legal entities. faces. To register a legal entity. a person needs a charter, authorized capital, seal and current account. This is not necessary to register an individual entrepreneur.

Individual entrepreneurship is registered only for one person, that is, it is not suitable for running a legally registered joint business. When registering a legal entity. a person may have several founders.

An individual entrepreneur is liable for obligations with all his property even after the closure of an individual business, and a legal entity. person with authorized capital. After the liquidation of a legal entity, all obligations cease.

The maximum fine for administrative liability of a legal entity. faces are larger than those of the individual entrepreneur. An individual entrepreneur can issue a power of attorney, but the entrepreneur will still be the responsible person. A director is appointed for a legal entity. An individual entrepreneur can manage the funds in his current account as he pleases, but for a legal entity. persons, withdrawal of funds from the current account can only be for any purpose or payment of dividends (tax). Individual entrepreneur cannot be sold or re-registered, legal entity. face is possible. Individual entrepreneurs are relatively easy to liquidate (close), legal entities. the face is complicated. An individual entrepreneur makes business decisions without recording, and a legal entity. the person records them. And finally, a very important difference between these two categories: Legal. a person can produce and sell alcohol, but an individual entrepreneur cannot.

Also very relevant is the question of the difference between two concepts: “Individual entrepreneur” (hereinafter referred to as IP) and “Entrepreneur without the formation of a legal entity” (hereinafter referred to as PBOYUL). There are two positions:

1) These concepts are identical. Considering that the legislator uses both of these terms and even in the same regulatory legal acts.

In the Civil Code "Civil Code of the Russian Federation (Part One)" dated November 30, 1994 N 51-FZ (as amended on April 6, 2011):

Article 23. Entrepreneurial activity of a citizen

1. A citizen has the right to engage in entrepreneurial activity without forming a legal entity from the moment of state registration as an individual entrepreneur.

In the Tax Code "Tax Code of the Russian Federation (Part One)" dated 07/31/1998 N 146-FZ (as amended on 07/19/2011) (with amendments and additions coming into force on 09/30/2011):

Article 11. Institutions, concepts and terms used in this Code.

“...individual entrepreneurs are individuals registered in the prescribed manner and carrying out activities without forming a legal entity, as well as notaries, lawyers who have established law offices...” “Tax Code of the Russian Federation (Part One)” dated July 31, 1998 N 146-FZ ( as amended on July 19, 2011) (with amendments and additions coming into force on September 30, 2011)..

2. From January 1, 2005, the concept of “Entrepreneur without forming a legal entity” no longer exists, since the Unified State Register of Individual Entrepreneurs appeared, in which individual entrepreneurs are registered, and not the PBOYUL as it was before.

I believe that IP and PBOYUL are equivalent abbreviations.

Before determining the differences between an individual entrepreneur and a legal entity (for example, an LLC), it is necessary to understand the very concepts of “individual entrepreneur” and “legal entity” and see what they are.

Entity- an organization registered in accordance with the procedure established by law, which has separate property in ownership, economic management or operational management and is liable for its obligations with this property, can, in its own name, acquire and exercise property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court .

Individual entrepreneur(IP) does not have the status of a legal entity, but can engage in any legal activities, be a customer and contractor of work, and also use hired labor. The individual entrepreneur form is convenient to use for creating small enterprises.

The main differences between an individual entrepreneur and an LLC:
An individual entrepreneur is not required to have an authorized capital of an individual entrepreneur; it is not necessary to have a bank account. The procedure for registering and terminating the activities of an individual entrepreneur is simpler. There is no need to waste time on preparing legal constituent and other special documents. An individual entrepreneur can use a simplified system for maintaining accounting and tax reporting. Having an accountant on the staff of an individual entrepreneur is not necessary.

Often people who have opened their own business cannot clearly understand their new legal status. Whether the individual entrepreneur remained an individual or became a legal entity.

The current legislation does not have extremely clear formulations on this matter, which seriously complicates the explanation of the current legal situation.

In essence, an individual entrepreneur remains an individual (hereinafter referred to as a PE), but at the same time is endowed with the rights of a legal entity (LE). This is how his dual position develops. The entrepreneur continues to enjoy all the rights of a citizen of the Russian Federation, as in the Federal Law. A legal entity cannot exercise such rights under any circumstances.

At the same time, an individual entrepreneur receives broad rights as a business entity. In many ways they are similar to the rights of legal entities. Since this combination of rights is permanent, in a sense, they are mixed.

An entrepreneur who sells goods near a polling station on election day uses the opportunities of a legal entity for entrepreneurial activities. However, he can go to this polling station at any time and exercise his FL right by voting for any candidate.

Thus, an individual entrepreneur remains a sole proprietor, but he has a very significant part of the powers inherent in a legal entity. It is impossible to call an individual entrepreneur a legal entity, since the current law contains a direct answer to the question of its status. The Civil Code of the Russian Federation, without reservations, calls any individual entrepreneur an individual. This formulation is quite clear and does not require clarification.

The law often emphasizes that the duality of the position of an individual entrepreneur lies in the fact that he enjoys the rights of both a sole proprietor and a legal entity. The fact that an individual entrepreneur refers specifically to individuals, even if he has a special status, is not disputed by any legislative act.

Most types of activities that a legal entity has the right to engage in are available to an individual entrepreneur. In addition, there are types of activities that can only be carried out by citizens with the status of Individual Entrepreneur (for example, the provision of private detective services). An individual entrepreneur can act as a founder of a legal entity, like a sole proprietor. He has the right to engage in paid work. Often, individual entrepreneurs enter into agreements with other persons as individuals and not as legal entities. This allows you to significantly reduce the amount of taxes that must be paid when making such transactions.