What is the difference between an individual entrepreneur and a legal entity? faces

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.

This question always arises before those who become entrepreneurs for the first time, that is, choose the most beneficial organizational and legal form of their future business in all respects. It should be noted that according to the All-Russian Classifier of Organizational and Legal Forms (OKOPF), there are more than a dozen different forms of ownership, but in practice the most popular are IP (individual entrepreneur) and LLC (Limited Liability Company).

Our Library contains several articles that show all the pros and cons of both of these forms of ownership. Here we have summarized all these materials and shown in tabular form what is better than an individual entrepreneur or an LLC. This was done in order to competently assess all the pros, cons and financial risks, advantages and disadvantages of registering individual entrepreneurs and LLCs. Therefore, read this material carefully to know in advance what type of business activity you plan to engage in.

There is a main difference between an individual (IP) and a legal entity (LLC). It lies in the amount and scope of property liability to creditors, including the state. An individual entrepreneur is responsible to creditors under his agreements with all my property, and even those that are not used in his business activities. But an LLC, as a legal entity, is liable only to the extent of the property that is listed on its balance sheet.

We would like to reassure you, reader, that if an individual entrepreneur cannot pay off his debts, then he will not be sent to prison for this and everything will not be taken away, even his slippers. And they won’t take your only home if it’s not on a mortgage. So, carefully read the table with the most important differences between individual entrepreneurs and LLCs.

Individual entrepreneur or LLC: advantages, disadvantages, differences

So, dear reader, after reading the main differences between an individual entrepreneur and an LLC, only you can decide what to choose - an individual entrepreneur or an LLC.

But if you are planning to create a medium or large business with serious prospects, then it is better to register an LLC.

If your activity is related to services provided directly by you, or by a small number of your employees, if this is small trade, then the best choice is an individual entrepreneur. Which, by the way, may also be the founder of the LLC.

Individual entrepreneur or LLC? What's better

When organizing a new business, an entrepreneur, first of all, has to decide on a choice in favor of an individual entrepreneur or an LLC. Indeed, in these forms there are both similar and strikingly different aspects.

So, it’s worth understanding what individual entrepreneurs and LLCs are. To formulate the definition briefly, an individual entrepreneur is a person who is engaged in entrepreneurial activities without forming a legal entity. An LLC is a company that can be established by a company or an individual.

Rights and obligations of individual entrepreneurs and LLCs - differences

Individual entrepreneurs and LLCs can be considered almost equal. That is, both can perform similar actions - hire workers, enter into contracts (with both individuals and legal entities), etc. However, there is still a difference between them. It consists in the fact that the individual entrepreneur is responsible for his obligations with absolutely all personal property, including real estate and transport. But an LLC only has the authorized capital and property of the company.

What is the difference in registering an individual entrepreneur and an LLC?

In the first case, to perform this action you must have a passport. It is also mandatory to pay the state fee, which is 800 rubles. Within 7 days, an entrepreneur can register with the pension fund and tax authorities. You can register with the Federal Tax Service only at your place of registration, and you can carry out activities without a current account and seal at any point within the country. However, this rule does not apply to UTII. In this case, registration must be carried out precisely at the location and place of business.

An LLC must be registered only at its legal address, in other words, at the place where it is located. This process is characterized by a significantly greater investment of financial resources and time compared to the previous point. First of all, we have to prepare an impressive package of documents with the involvement of specialists. And the state duty here is 5 times higher than the amount calculated for registering an individual entrepreneur. It is 4000 rubles. A prerequisite is the contribution of the authorized capital, the minimum threshold of which is 10,000 rubles.

Also, a significant difference between an individual entrepreneur and an LLC is that the former cannot have founders. In an LLC this is possible, but their number is limited to 50 persons.
It is worth noting that in the case of an individual entrepreneur, a mandatory condition in the documents is the presence of the entrepreneur’s surname. In an LLC, this clause is not required.

The founders of the LLC choose a director who will represent the company. He does not need a power of attorney for this. But the individual entrepreneur manages the activities independently. But it is also possible to transfer affairs to a representative, provided that a power of attorney is drawn up, certified by a notary.

What is more profitable: LLC or individual entrepreneur?

Keeping accounting records for individual entrepreneurs is not mandatory. All you need to do is fill out a book of income and expenses. This action is performed for the purpose of calculating taxes.

For LLCs, accounting is mandatory, with the exception of the simplified tax system. To do this, you will have to contact the services of an accountant, which will bring additional costs.
Therefore, in the case of individual entrepreneurs, this factor is much less expensive.

In the matter of violations, both tax and administrative, the financial advantage is also on the side of the individual entrepreneur. For example, the fine for violation of cash transactions in relation to individual entrepreneurs will be up to 5 thousand rubles, and for an LLC it is already about 80 thousand.

In case of recovery from the manager, the LLC may be re-registered to another person or sold. The individual entrepreneur will have to sell the property, and its activities will be terminated.

LLC has the right to produce and sell alcoholic products. An individual entrepreneur does not have such rights.

If we touch on the issue of trust on the part of other companies, then an LLC has a clear advantage over an individual entrepreneur.

Taxation of individual entrepreneurs and LLCs

The simplified taxation system for individual entrepreneurs does not imply any restrictions on income and the cost of fixed assets. An LLC can apply the simplified tax system only if its number is no more than 100 people, the residual value of the fixed assets is less than 100 million rubles, and the annual income is no more than 60 million rubles.

If an individual entrepreneur does not have hired labor, then he will have to pay taxes only from his activities and established payments to the Pension Fund and the Federal Compulsory Compulsory Medical Insurance Fund from the minimum wage. It is not possible for an LLC to function without employees.

In addition to taxes on income received, the LLC will have to pay insurance contributions to extra-budgetary funds - FFOMS, Pension Fund, Social Insurance Fund, which are calculated from the amount of accrued wages, which must be greater than the minimum.

Accounting for cash transactions is mandatory for LLCs, but not for individual entrepreneurs. But only an individual entrepreneur can spend the proceeds at his own discretion. In the case of an LLC, these amounts are the income of the company and imply only use for necessary needs.

Dividends can be distributed at least quarterly. This process must be spelled out in the LLC's charter. These amounts are subject to 9% tax.

Opening, Closing an Individual Entrepreneur and Liquidating an LLC

Both opening and closing an individual entrepreneur are much faster and easier than an LLC. You just need to submit an application for liquidation and pay a state fee in the amount of 160 rubles. After 7 days, the entrepreneur will receive a decision on exclusion from the Unified State Register of Individual Entrepreneurs.

Liquidation of an LLC takes at least 6 months. First, an advertisement must be submitted to a special journal, then settlements with creditors must be ensured, severance payments must be paid to employees, an interim and liquidation balance sheet must be submitted, and, finally, a state fee in the amount of 160 rubles must be paid.

Before you finally make your choice, it is worth outlining the prospects for the further growth of your activity. The larger it is, the more preference should be given to LLC.

Individual entrepreneur or LLC: Advantages and disadvantages

The difference between a legal entity and an individual entrepreneur is that these business entities are created on fundamentally different principles and their responsibilities for obligations differ. A legal entity is an organization of several citizens; an individual entrepreneur acts as a citizen entitled to carry out commercial transactions. Individual entrepreneurs have restrictions on cash turnover, staff and assets when using simplified tax regimes.

The status of an individual entrepreneur presupposes that a certain citizen who has legal capacity and capacity receives the right to engage in commercial activities. He has the right to acquire rights and material assets on his own behalf. It is believed that enterprises created on this basis are a good start for their business, and small businesses are created mostly by entrepreneurs.

However, the burden on an individual entrepreneur as an individual can be so great that it is better to register a small enterprise on the basis of a legal entity. The fact is that the founder of an organization is liable for its debts only to the extent of the contribution to the authorized capital, and the entrepreneur risks losing all personal property if financial problems arise. But this is only one, albeit the main difference between an individual entrepreneur and a legal entity.

Let's summarize all the differences in a table:

There is one more difference between an individual entrepreneur and a legal entity that cannot be reflected in one row of the table - this is the method of liquidation.

An entrepreneur may lose his commercial status for one of the following reasons:

1. At your own request.
2. Due to the bankruptcy of the enterprise.
3. If the court, by its decision, required the termination of activities as an individual entrepreneur.
4. Due to the death of an individual – entrepreneur.

Organizations are liquidated for reasons that only partially coincide with this list.

As for hired workers, both the individual entrepreneur and the organization must comply with the general rules for hiring and dismissing employees and drawing up work books. The procedure for settlements with employees in the event of bankruptcy of an enterprise is similar: each of them can pay creditors only after paying all the money earned to the staff.

Limited Liability Company

An enterprise in the form of a legal entity is an organization of several individuals who decided to join forces to achieve the goals set by the founders. One individual, a group of citizens, one organization, and a group of legal entities are allowed to participate in the creation of a company. Any combination of these participants is allowed. The only prohibition exists for circumstances when an organization with one founder is trying to create a company. This option is prohibited by law.

A common feature of legal entities with individual entrepreneurs is the ability to buy property rights, non-property assets on their own behalf, have responsibilities, and act as a plaintiff and defendant in court.

A legal entity, unlike an individual entrepreneur, has capital formed from the contributions of participants. These funds, tangible or even intangible assets, are initially used to pick up the pace of economic development. Throughout the existence of a legal entity, amounts invested in the authorized capital are accounted for separately from other assets accumulated in the course of activity.

Organizations have another attractive property: if an enterprise has to pay its obligations forcibly (for example, in case of bankruptcy), then collection is imposed only on the money available in the accounts and in the cash register, as well as on the property belonging to it. The founders' contributions remain intact.

An entrepreneur is forced to start with personal or borrowed funds, which increases the risk of losing private money and property.

The legislation provides for fines for organizations, sometimes several times higher than the sanctions established for entrepreneurs. Thus, the state compensates for losses resulting from the limited liability of the founders.

For example, for inviting a foreigner to work without registration documents, an entrepreneur will be fined a maximum of 50 thousand rubles, and a legal entity can be fined up to 800 thousand rubles.

Analyzing the table given in the section above, we will sample the positive and negative aspects of each business entity. First, let's look at the pros and cons of individual entrepreneurs.

The attractive aspects of this status are:

• simple and quick registration with the tax office, which does not require the preparation of a package of documents (if you participate in person, you need a passport, an application and a receipt for payment of state duty);
• you can do without a current account;
• no round seal required;
• Accounting may not be kept; tax accounting comes down to recording business transactions in the book of income and expenses;
• the most complex taxes have been replaced by a single budget payment, which is paid once a year (if there were no quarterly advances);
• the amount of the single tax paid when using special regimes and “simplified taxation” is significantly lower than the rates that are inherent in VAT, income tax, etc.;
• if there is no staff of hired workers, reporting is submitted quarterly at worst, and once a year at best in the form of a declaration;
• it is possible to do without cash registers, accounting for relevant transactions is simplified;
• a simple procedure for liquidating status, which does not require stage-by-stage meetings, notification of creditors, etc.

The status of an individual entrepreneur also has negative features, such as:

• You will have to answer for obligations that are not secured by the assets of the enterprise with personal funds and property - this is the fundamental difference between an individual entrepreneur and a legal entity;
• not all types of classes are available (excise, some licensed, etc.);
• Individual entrepreneurs usually operate without VAT, as a result of which it is not profitable for organizations to make transactions with entrepreneurs;
• entrepreneurs are reluctant to enter into export-import contracts;
• it is impossible to hire an executive director of an enterprise;
• the business cannot be passed on by inheritance, sold, or even donated;
• You have to pay insurance premiums for yourself even with zero income.

The positive qualities of organizations are:

• members of the company are liable for the obligations of the organization exclusively within the framework of their shares in the constituent capital;
• the participant is given by law the right to leave the company at any time he needs, he is paid the value of the share;
• the enterprise can be sold using legal schemes, the share can be donated or inherited;
• the organization has the right to choose from all existing types of activities;
• you can hire a company manager;
• The purchase of a trademark is permitted.

The negative properties of companies are as follows:

• the registration procedure upon opening involves the preparation of a large volume of documents;
• for registration it is necessary to form an authorized capital and document this process;
• It is difficult to liquidate a company, and it is necessary to carry out a set of measures to hold several meetings of participants, notify creditors through printed means, etc.;
• You cannot work without a current account;
• a round seal is not required by law, but in practice it will be difficult to conclude a deal without it;
• you need to keep accounting records in full, unlike individual entrepreneurs;
• significantly greater responsibility for the offenses committed than that of an individual entrepreneur.

The organization is more complex in management, in the number of registers, but this quality cannot be considered negative, it is dictated by necessity.

What is more profitable to open an individual entrepreneur or LLC?

The comparative conditions given in the table allow you to understand how an individual entrepreneur differs from a legal entity, and the previous section - what are the pros and cons of these business entities.

The difference between an individual entrepreneur and a legal entity is significant in some positions, but in others it is almost not felt. Based on business practice, the following trends have emerged in determining which is better - entrepreneurship or LLC.

It is worth choosing a legal entity in cases where:

1. There is a desire to enter the market with your own brand.
2. Starting a business involves significant financial risks.
3. There is a large number of properties to be acquired.
4. There is an intention to enter into export or import transactions.
5. You have to go to banks for borrowed funds.
6. A high profitability of hundreds of millions of rubles may result.
7. The business is planned to be built in an area where individual entrepreneurs are not allowed.

Individual entrepreneur status is preferred:

1. In small businesses where there is a desire to reduce accounting and taxation to a minimum.
2. If you need to earn insurance points before retirement, but there is no legal work.
3. When you need to start a small business in order to later develop into a medium-sized enterprise without the burden inherent in the organization.
4. If it is possible to cope alone or with the involvement of a small number of hired workers.

In most cases, there is no question of choice - citizens starting their own business start as an individual entrepreneur, and then, if the business develops successfully, they move into the category of legal entities.

Creating a small enterprise as an individual is the easiest and fastest way to get involved in entrepreneurship. Therefore, today the vast majority of small businesses are individuals. However, this simplified form has a number of disadvantages, most of which can be avoided by creating a small enterprise in the form of a legal entity.
A legal entity is an enterprise that has separate property in ownership, economic management or operational management and is responsible for its obligations with this property. A legal entity can, on its own behalf, acquire property and non-property rights, bear responsibilities, and be a plaintiff and defendant in court. Legal entities must have an independent balance sheet and budget. A small enterprise established in the form of a legal entity is legally an organization.
When registering a legal entity, the founders make contributions on their own behalf to the organization’s property. 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. If an organization has suffered losses and creditors demand repayment of debts, a legal entity can pay creditors only within the limits of its property. That is, give away fixed assets, securities, goods, finished products, etc. At the same time, the founder can sleep peacefully: it is impossible to take away the personal property of the founders for debts, since the organization is liable for debts only with its own separate property.
If an individual entrepreneur finds himself at a loss and cannot repay his debts to his creditors, then by a court decision he may be declared bankrupt. From the moment such a decision is made, the citizen is deprived of his status as an individual entrepreneur.
To satisfy the demands of creditors, an individual entrepreneur will have to pay off not only the property that he used in his activities for debts. Collection for debts can be imposed on a dacha, an apartment, a car, or a citizen’s garage. After all, an entrepreneur has to answer for his debts with all his property.
First of all, the demands of citizens to whom the entrepreneur is responsible for causing harm to life or health, as well as demands for the collection of alimony, are satisfied. Then the entrepreneur will have to pay off the employees by paying them wages and severance pay. Then creditors whose claims are secured by a pledge of property owned by the individual entrepreneur will receive their share. Fourthly, the debt on obligatory payments to the budget and extra-budgetary funds will be repaid. And lastly, the claims of all other creditors are satisfied.
Disputes between citizens registered as individual entrepreneurs, as well as between these citizens and legal entities, are resolved by arbitration courts. With the exception of disputes not related to the implementation of entrepreneurial activities by citizens.
Legal entities must have an independent balance sheet or budget and must maintain accounting records. In contrast, individual entrepreneurs only keep records of income and expenses to calculate the taxes they must pay to the budget.
In some cases, it is advisable to start a business without forming a legal entity, and only then, having gained experience and accumulated the necessary capital, register a small enterprise as a legal entity.

The legal nature of an individual entrepreneur (IP) is dual. An individual entrepreneur can be regarded as an individual, although at the same time it has many qualities of a legal entity (LE).

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This means that a citizen who has received the status of an individual entrepreneur enjoys the rights that are enshrined in laws for individuals and norms that reflect the essence of legal entities.

Many people tend to characterize an individual entrepreneur as an individual because when they mention it, they don’t hear a name, like, for example, a legal entity (LLC “Bereg”), but the last name of the entrepreneur. Of course, this characteristic is typical of ordinary people who do not understand the legal framework. For those who deal with entrepreneurs due to their work, they can confidently judge that an individual entrepreneur is endowed with a large number of rights and responsibilities of a legal entity.

For example, if a dispute arises between a legal entity and an individual. To resolve the issue, the parties must apply to the Arbitration Court. This circumstance indicates that the relations of the entrepreneur with other participants in business activities are based on the rules of law relating to legal entities.

For example, duality can also be attributed when an entrepreneur makes a purchase in a store. How to understand that he is making a purchase as a legal entity or as an individual? In fact, no way. Since the purchased product can be used for both personal and business purposes.

The main thing is that the entrepreneur himself has no doubts about duality. Even at the stage of deciding to register an individual entrepreneur, it is necessary to distinguish between the status of an individual entrepreneur and a legal entity, which will allow the creation of correct work and discard the question of the duality of concepts.

Pros and cons of IP

The advantages of an individual entrepreneur include:

• simplified cash transactions;
• a simple registration procedure that does not require large expenses;
• no complex accounting required, no need to prepare reports;
• income received in the course of business activities can be used at its own discretion and for any purpose;
• no current account required;
• use of the simplified taxation system (STS);
• reduced tax rates.

The disadvantages of an individual entrepreneur include:

• sole responsibility;
• the scope of activity has been narrowed;
• not all large companies are ready to cooperate with individual entrepreneurs;
• it is impossible to sell the business;
• with a zero balance and losses, you are required to make a contribution to the pension fund.

Pros and cons of LLC

LLC advantages:

1. Its founders are not responsible for the obligations of the LLC, bearing the risk of losses only within the limits of their contribution to the authorized capital.
2. It is possible to do business together.
3. The right to leave the LLC at any time and receive the value of your share.
4. Sale of business.
5. Obtaining a license for certain types of activities that an individual entrepreneur cannot carry out.
6. If we compare individual entrepreneurs and LLCs in terms of licensed types of activities, then the LLC has the opportunity to obtain some licenses that are not available to individual entrepreneurs.
7. You can hire a director who will act without a power of attorney.
8. Possibility to choose a name for your business.

Disadvantages of LLC:

1. Complicated registration and liquidation process.
2. Obligation to contribute the minimum authorized capital (10,000 rubles).
3. Availability of creating a seal and opening a current account.
4. Preparation of financial statements, bookkeeping.
5. The amount of fines has been increased.
6. The need to include equipment used for work in the Criminal Code and tax must be paid for it.

Rights of a legal entity

A legal entity, like any citizen, has its own certain rights. Of course, they will differ in many ways, but the very fact that a person has rights as a legal entity indicates that he is a full participant in civil relations.

Rights are necessary for a legal entity to properly structure its work, participate in business relationships, and, of course, to realize its interests.

First of all, having rights is necessary to assert your rights in court. It is no secret that in the work of a legal entity, conflict situations often arise that require the protection of one’s rights and the fulfillment of assumed responsibilities.
The rights vested in a legal entity may be specified in the constituent documents.

The emergence of rights corresponds to the moment of registration of a legal entity, and ends from the moment of its liquidation. Not all rights can be freely exercised. Depending on the type of activity, a legal entity is required to obtain a license. Rights can be limited only in cases expressly specified in the law. If such a restriction arises, a legal entity may appeal it in court.

Status of an individual

An individual becomes the owner of his rights from the moment of birth and uses them throughout his life. A citizen can exercise his rights under his own name and surname. Among the fundamental rights enshrined in the law is the right to open an individual entrepreneur.

Thus, the citizen acquires the status of an entrepreneur. If the status as an individual arises from the moment of birth, as mentioned above, then the status as an entrepreneur arises only after its registration. Having passed it, an individual assumes dual rights and responsibilities, i.e. not only a citizen, but also a person who opened an individual entrepreneur.

In order for a citizen to be able to open an individual entrepreneur, he must reach full legal capacity.
The norms of civil legislation apply to the activities of an individual entrepreneur. While other laws may apply to a citizen - an individual, for example, on the protection of consumer rights.

Accordingly, an individual acquires equal rights and equal obligations, along with other business entities, and the laws to which individuals fall are applied to him.

The law may limit a citizen-entrepreneur in the choice of activity or oblige him to obtain a license to carry out activities.

If, during the activities of an individual as an individual entrepreneur, disputes arise with other participants in business activities, he cannot refer to the fact that at the time of the violation he acted as an individual. This rule of law is aimed at protecting counterparties and encouraging citizens to comply with established rules.

Activity as an individual entrepreneur ends upon the occurrence of the following circumstances:

• the fact of death of an individual;
• by personal decision;
• passing a sentence against an individual;
• making decisions regarding individual entrepreneurs.

The right to carry out entrepreneurial activities is not subject to inheritance, and it is also impossible to donate an existing individual entrepreneur.

The difference between an individual entrepreneur and a legal entity

Differences:

1. Registration: Individual Entrepreneur – one person, Legal Entity – 2 or more participants.
2. Responsibility: individual entrepreneur - sole, with all his property, legal entity - limited to the size of the participant’s contribution.
3. Registration: individual entrepreneur - simplified, minimum period and package of documents, legal entity - creation of a large package of documents (Articles of Association, decision, etc.), availability of a seal and bank account.
4. State duty: individual entrepreneur – 800 rubles, legal entity – 4,000 rubles.
5. Taxes: individual entrepreneur – simplified taxation system, contributions to the Pension Fund are fixed, regardless of whether there is activity or not, legal entity – in the absence of activity, contributions to the Pension Fund are not made.
6. Types of activity: individual entrepreneur - limited by law, legal entity - scope of activity is unlimited.
7. Accounting: individual entrepreneur – optional, legal entity – mandatory, filing of financial statements is required.
8. Profit: individual entrepreneur - can be used for personal purposes at any time, legal entity - distributed no more than once a quarter.
9. Authorized capital: individual entrepreneur – not required, legal entity – minimum 10,000 rubles.
10. Selling a business: individual entrepreneur – impossible, legal entity – has no restrictions.
11. Power of attorney: individual entrepreneur - valid when certified by a notary, legal entity - certified by the seal and signature of the director.

Having identified all the main aspects of the work of a legal entity and an individual entrepreneur, drawing a parallel between them, we can come to the conclusion that both entities are full participants in economic activity, with equal rights and responsibilities.