Civil legal status Legal status of an individual entrepreneur: features, pros and cons

Legal status individual entrepreneur received by citizens who have passed the registration process with the authorities state power to obtain a business permit.

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If the registration process has not been carried out, the activity of the IP is considered illegal and is a criminal offense. An individual must have a constant source of income.

The status of an individual entrepreneur can be equated to the status of a legal entity. An individual entrepreneur can have his own, current or other bank account, trademark, sign contracts, hire employees.

IP can be persons who have reached the age of majority and older. The future entrepreneur needs to get acquainted in detail with the activity that he plans to engage in and the requirements necessary for its implementation.

The status of an individual entrepreneur has its own contradictions. Despite the fact that the IP takes part in economic activity, it does not form an economic entity.

Signs of entrepreneurial activity

Independence

Autonomy can be of two types:

1. property- is based on the fact that the entrepreneur owns his property and disposes of it in the process of working activity at his own discretion.
2. Organizational- implies the adoption by the entrepreneur of independent decisions regarding his work. This type independence begins to operate from the moment the decision to exercise certain activity until the receipt of income from its successful implementation. The entrepreneur does not report to anyone, and all responsibility also lies with him.

Property liability - is that all the property that is at the disposal of the entrepreneur is under constant risk.

Systematic - for the implementation entrepreneurial activity takes a certain amount of time. Certain criteria for systematicity have not been established by the state.

As the main criteria for qualifying activities as entrepreneurial, it is customary to use:

1. The amount of income received.
2. The number of times a profit is made in a given period of time.
3. Part of the profit received for the implementation of entrepreneurial activities in the total income of the entrepreneur.

Formality

Before starting a business, you first need to go through a special registration of a company and an individual. Only then can your activity be considered legal.

Regular profit

This is the main goal of any business activity. If the activity, for some reason, does not make a profit, but seeks to generate income, it is called entrepreneurial.

Risk

Entrepreneurs constantly lie in wait for various kinds of risks: economic, organizational, and so on. There are types of risks that an entrepreneur can keep under his control, other types cannot be influenced in any way. In order to make the situation less uncertain, entrepreneurs prefer to insure their business. Careful consideration of each move will help to avoid risk.

Professionalism

This feature is determined by the experience of the entrepreneur, special education, as well as theoretical and practical knowledge. Professionalism is especially important if a license is required for permission to engage in entrepreneurial activity.

Constant search for resources

Necessary for your business to develop and prosper.

Business resources can be:

• financial capital;
• new equipment;
• necessary raw materials;
• modern technologies;
• the premises in which business activities are carried out;
• wage-earners;
• clients;
• business partners;

Stagnation in entrepreneurial activity is fraught with the fact that the entrepreneur will not only cease to receive any profit, but will also remain at a loss.

Rights and benefits

1. The most important right that an individual entrepreneur has is a business permit.
2. There is no division of property into that which takes part in economic activity and does not accept, which in turn has both positive sides(for example, the ability to use personal transport in work), and negative ones. The negative aspects include the fact that in the event of a lack of funds necessary for settling with creditors, your property will be confiscated.
3. Individual entrepreneurs are exempted from the obligation to keep accounting records, unless the IP organization maintains a simplified taxation system. In this case, accounting for income and expenses is carried out in accordance with the procedure established by law.
4. There are certain benefits for organizations and individual entrepreneurs leading a simplified taxation system, as well as those included in the list of areas of activity that are subject to preferential categories.
5. For individual entrepreneurs, the opportunity is available to pay a smaller amount of simplified tax on insurance premiums, reduce the tax paid to various funds (pension, social insurance and so on) and receiving temporary disability benefits.
6. Individual entrepreneurs can defer the payment of taxes and fees or pay them in installments. Such privileges are granted if financial position the entrepreneur does not allow the payment to be made within the stipulated period, but there is every reason that this situation will change in the period specified in the deferral better side and all payments will be made. At least one of the required grounds must be met in order to receive a deferment.
7. Possibility to use the right of VAT exemption. In addition, when an entrepreneur provides certain services, he is paid VAT benefits.
8. The entrepreneur can take measures to reduce industrial injuries from their employees at the expense of the amounts of insurance premiums.
9. An individual entrepreneur is entitled to receive subsidies and subsidies. Employment agencies provide financial assistance those who have decided to do business, but do not have the means for this, due to the lack of a permanent place of work. An entrepreneur can receive the same amount for creating jobs. There are also programs aimed at supporting entrepreneurs.

Responsibilities and Restrictions

1. An individual entrepreneur constantly risks all his property, with the exception of the one that cannot be recovered.
2. Individual entrepreneurs are prohibited from retailing alcoholic beverages.
3. Not all influential companies are willing to cooperate with individual entrepreneurs.
4. An individual entrepreneur is not entitled to leave any records in work book your hired worker. The procedure for registering employment contracts is a rather complicated and troublesome business.
5. An individual entrepreneur is obliged to pay fiscal payments to the FIU.
6. If the IP maintains the usual taxation system, then losses incurred in previous years cannot be taken into account in the calculation of personal income tax.
7. It is problematic to decide on whom to register a business if several entrepreneurs are at the head at once.
8. There is no possibility to hide or change the full name. During registration.
9. An individual entrepreneur acts as an insurance agent for his employees, and undertakes to make payments to budget funds instead of them.
10. An individual entrepreneur is obliged to pay taxes in a timely manner.

Advantages and disadvantages

Advantages:

1. An individual entrepreneur has more rights than ordinary citizens.
2. The right to conduct commercial activities.
3. Individual entrepreneurs may not pay taxes on personal income.
4. Not a large number of required documents, the minimum cost of registering IP status.
5. Individual entrepreneurs pay minimal fines, unlike legal entities.
6. Personal stamp and bank account are optional.
7. An individual entrepreneur decides for himself how he will dispose of the income that the business brings, there is no need to wait for the distribution of profits.
8. The entrepreneur and his relatives have the right to use all property, without dividing it into private and commercial.
9. Entrepreneurial activity is easily compatible with any other profitable activity.

Flaws:

1. There is a very big risk in the work of an individual entrepreneur, if the entrepreneurial activity is not successful, the businessman runs the risk of saying goodbye to all his property.
2. Taxes must be paid on time.
3. If there are employees subordinate to the entrepreneur, he assumes the duties of their insurance agent.
4. An individual entrepreneur undertakes to pay a fiscal contribution to the Pension Fund of the Russian Federation even if he did not show actual activity in the period indicated in the report.
5. For individual entrepreneurs, there are restrictions on the implementation of certain types of activities.
6. Business partners prefer cooperation with legal entities rather than with individual entrepreneurs.
7. In the case of a divorce process, all the property of the IP is divided between the husband and wife in half. The exceptions are cases where the division of property is carried out in accordance with the terms of the marriage contract.

Grounds for termination of activity

An individual entrepreneur can stop his entrepreneurial activity when he wants to.

Often this is due to:

• the decision of the IP to terminate its activities;
• IP death;
• ruin of an individual entrepreneur;
• a court decision to ban an individual entrepreneur for a certain period of time to carry out its activities;
• forcibly, by a court decision;

Thus, we can conclude that becoming a sole trader is desirable only if you have good logical thinking and are able to think carefully about your activities.

IP work- this is a constant risk, you have to rely only on yourself and luck. But despite this, there are many good points, which are available only to an individual entrepreneur and, of course, are aimed at his benefit.

The Civil Code of the Russian Federation states that business activity is an activity that a citizen carries out to obtain a regular profit ( legal means). It is important that he does it at his own risk.

It is also allowed by law to conduct business without forming a legal entity. To do this, they undergo state registration as an individual entrepreneur (hereinafter referred to as IP). What legal status individual entrepreneur? How to become one and what are the features of the organizational and legal form (hereinafter referred to as OPF) of an individual entrepreneur?

Individual entrepreneurs are individuals, but the provisions of the laws of the Russian Federation, which also apply to legal entities, apply to them at the same time. This is due to the fact that people registering as IP expand their civil rights(they can engage in activities that persons without IP cannot carry out), but do not create a new business entity.

The main right of an individual entrepreneur, which he receives at the time of state registration, is to carry out commercial activities (if it is not prohibited by law) and receive profit from it.

You have to pay for everything. And it's not even a figurative expression. As a payment for the opportunity to have a business, the IP transfers taxes to the state treasury. They are withdrawn in the form of duties, contributions (insurance or pension, for example) to funds (PFR, FSS), as well as direct taxes (such as personal income tax).

IP pays taxes as an individual. For example, if he uses vehicles in his activity, then he pays for them exactly as an individual. For legal entities, a similar tax (due to other legal requirements) may be higher.

What is the difference between the legal status of individual entrepreneurs and legal entities? The fact that individual entrepreneurs are responsible for the obligations of all their property, including personal ones, while legal entities work only within the framework of authorized capital.

In terms of litigation, the status of an entrepreneur also differs from legal entities. Individuals resolve their rights and disputes in Arbitration Courts and courts of general jurisdiction. In order to better understand the status of an individual entrepreneur, it is necessary to take into account the peculiarities of the civil law status of an individual entrepreneur.

One of them is that in Russia there is no single act that would clearly establish:

1. Who is an IP?
2. What are his responsibilities?
3. What are his rights?

Answers to these questions have to be sought in various articles and provisions of domestic legislation. A single structure of the legal status of an individual entrepreneur at the federal level has not been defined. Yes, in some subjects of the federation there is no such problem. Local deputies took appropriate measures to eliminate it in order to support small businesses.

It is much easier to provide benefits to that category of citizens, the signs of which are clearly defined by law (in this case, this category is individual entrepreneurs).

To know all the strong and weak sides the status of an IP payer and decide whether to switch to an IP or not, do you need to study in detail a large number of Codes of the Russian Federation? No.

The IP form has advantages and disadvantages over:

• ordinary citizens;
• other OPFs.

Compared to ordinary citizens, sole proprietors have one significant advantage, from which all others are derived - sole proprietors can legally engage in commercial activities, while ordinary citizens cannot. If civilians do business without establishing an individual entrepreneur or legal entity, then they will be held accountable (administrative or even criminal) under the law.

In terms of taxation, entrepreneurs also stand out among ordinary citizens. Individual entrepreneurs do not pay income tax at a rate of 13%. But they must regularly pay contributions to state funds.

IN financial terms activities of individual entrepreneurs are more profitable than the activities of legal entities. It all starts with registration.

It is much easier and cheaper to obtain such a status than to establish an LLC or JSC:

1. It is not necessary for an individual entrepreneur to acquire a seal and checking account in a bank (although most often entrepreneurs draw up these attributes).
2. LLCs and JSCs initially invest in registration in the form of authorized capital, individuals are not required to do this.

Entrepreneurs have a wider choice of taxation systems than legal entities.

In case of non-compliance with any requirements of the law, for individual entrepreneurs, sanctions are not as significant as for legal entities (smaller fines, for example).

Individual entrepreneurs can dispose of income at their own discretion: withdraw it from the business, invest it back into the company without reporting. Legal entities cannot do this. The founders of LLC and JSC can withdraw money in the form of dividends, for example. However, they are required to pay the established tax on them.

The situation is similar with the property of an individual entrepreneur. Moreover, members of his family have the right to dispose of this property at their own discretion.

A businessman with the status of an individual entrepreneur can be not only self-employed, but also combine entrepreneurial activities and cooperation with an employer on employment contract.

It was noted above that individual entrepreneurs have the right to act as employees without closing IP. True, this right does not apply to all positions. A businessman does not have the right to simultaneously be registered as an individual entrepreneur and hold any public position. This is prohibited by law.

Many companies and individuals often prefer legal entities rather than individual entrepreneurs when cooperating. What is it connected with? For many citizens, the status of an LLC or JSC (in any form) is more credible than an individual entrepreneur. There is no compelling rationale for such behavior. It is only generally accepted that LLC and JSC are more reliable than individual entrepreneurs and cooperation with them is more promising, although this is not at all the case.

It is necessary to judge not by the OPF, but by the results of the development of a company or an individual. Unexpectedly, both LLC and individual entrepreneurs can equally terminate their activities.

The disadvantages include the fact that individual entrepreneurs are liable for obligations with all personal property, including those belonging to the family. In this case, legal entities have a more advantageous position.

Family relationships also influence IP. For example, in the event of a divorce (if the terms of the marriage are not agreed in advance), the profits from commercial activities are equally divided between the spouses. At the same time, it does not matter when one of the spouses registered an individual entrepreneur: before marriage or after - everything is considered jointly acquired property.

To avoid such a situation, an individual entrepreneur can draw up a prenuptial agreement, which will clearly define all the conditions for the division of property in the event of a divorce.

In order for a citizen to obtain the status of an individual entrepreneur, it is necessary to contact the Federal Tax Service and submit an appropriate application with a package of documents attached to it.

The deadline for processing documents for individual entrepreneurs in 2019 is three days.

What documents do citizens of Russia need to submit to the Federal Tax Service for registering an individual entrepreneur?

1. Application (form P21001).
2. Receipt of payment of the state duty for registration. Cost: 800 r.
3. Copy of the passport.

For foreign citizens to this list are added:

1. A copy of the TRP / permanent residence document.
2. Certified translation of the passport of the native state.

A similar procedure can be performed (following the procedure) through the website of the Federal Tax Service.

If the applicant initially decided that he would switch from the main tax collection system to another preferential regime, then a notice of the transition must be attached to the documents (in two or three copies).

The simplified taxation system or STS (or “simplified”) is divided into two types: income 6%, income minus expenses 15%. In the first case, the tax is levied in the amount of 6% of the income received, in the second - on the difference between income and expenses in the amount of 15%.

A patent or PSN does not imply the payment of any taxes at all. A patent is a document that is acquired by an individual entrepreneur and gives him the right to preferential terms engage in certain types of business (they are determined by the laws of specific subjects of the federation separately).

Individual entrepreneurs on a single tax on imputed income or UTII (or "imputation") pay a fixed income, which is established by the regional authorities for each type of business that is allowed on UTII, individually.

With a single agricultural tax (ESKhN), the situation is similar to that with UTII. Only those individual entrepreneurs who receive more than 70% of all profits from the sale of agricultural products (production or sales, for example) have the right to switch to the UAT.

The general taxation system (OSNO) is the most disadvantageous for an entrepreneur, not only in terms of the amount of taxes charged, but also in terms of reporting. In order to competently and correctly report on tax payments, an entrepreneur needs to have an accountant on staff with work experience and significant professional skills. Not every specialist can handle this.

Individual entrepreneurs who use preferential taxation regimes (STS, ESHN, UTII) need to purchase and register cash machine. It is also necessary for owners of online stores and entrepreneurs who are engaged in retail alcohol or products containing more than 15% ethyl alcohol.

In other cases, an individual entrepreneur acquires a check printing machine. This will help automate accounting and record the entrepreneur's cash flow, which is convenient when reporting in tax authorities.

In addition, receipts give a guarantee to customers that they can return or exchange the goods in case of a defect or for any other reason. However, some items are non-refundable.

For example, the following are non-refundable:

1. Cosmetics and perfumery.
2. Textile products.
3. Household furniture.
4. Auto.
5. Products from precious metals.

After registering a citizen as an individual entrepreneur, a corresponding entry is made in the unified state register of individual entrepreneurs, and the citizen himself registers with the tax authority.

The presence of the legal status of an individual entrepreneur gives a citizen ample opportunities for conducting economic activity:

• trade;
• production;
• services.

The state gives benefits to businessmen with this status. In particular, it allows you to legally engage in business activities in the above business areas. For this, it collects taxes from them.

Some citizens believe that the mandatory payment of taxes can be attributed to the shortcomings of individual entrepreneurship, but this statement can hardly be called fair, because absolutely all citizens of the country pay taxes in one form or another. This is one of the main sources of state income, with the help of which roads, houses are built, various benefits are paid, for example.

It is important for an entrepreneur to learn how to properly manage their income. One of the reasons budding entrepreneurs fail at the start is a waste of money.

Firstly, in order for a business to develop, it is constantly necessary to invest in it, and at the initial stage, this may have to be done “out of one's own pocket”. How to invest from the "pocket" if it is empty? Yes, you can take a loan, but is it reasonable if you can correctly redirect the profits already received without paying interest to the bank? In addition, late payment of debts will not lead to anything good.

Second, what if the investment was received from the state? For example, as part of a small business support program. They cannot be spent at one's own discretion, investments of this kind must be accounted for, and if obligations are not met, severe penalties will follow.

So, it is impossible to be guided by the principle “my profit: I do what I want”. You need to approach everything wisely and make balanced actions - this is the essence of business.

A businessman is responsible to clients, employees, the state:

1. If obligations to the client are not fulfilled, the entrepreneur will miss out on profits.
2. If the obligations to the employee are not fulfilled, then, perhaps, the individual entrepreneur will lose a specialist who could bring him large incomes in the future.
3. If a businessman does not fulfill his obligations to the state, then administrative or even criminal sanctions may be applied to him.

Therefore, starting work as an individual entrepreneur is a serious step that needs to be carefully considered. In some countries, in order to obtain entrepreneurial status, similar to an individual entrepreneur in Russia, it is necessary to undergo a psychological test, the results of which will serve as the basis for granting such status or refusing it.

Unfortunately or fortunately, Russian Federation such testing has not yet been introduced. To obtain the status of an entrepreneur, you only need to meet certain criteria (for example, not have a court ban on doing business), as well as provide a certain package of documents to the executive body involved in the registration of individuals and legal entities.

The legal status of an individual imposes a number of restrictions on a citizen, increases the level of his responsibility to the state, but at the same time gives him privileges compared to ordinary citizens and other forms of business organization.

Competent conduct of business is inextricably linked with an understanding of the norms of the law. Without this, it is impossible to build a successfully developing company. The choice of legal form depends on the goals of the business. The right decision at the initial stage will contribute to the successful implementation of ideas and plans. There are many common points between the legal statuses of an individual entrepreneur and a legal entity (LE), but there are also enough differences.

To understand the features of the submitted forms, it is necessary to analyze the articles of the law that indicate the procedure and conditions for the implementation of activities. Knowing the basics of regulation and the requirements, it will not be difficult to choose the appropriate option for implementing a business plan. We propose to understand what constitutes the legal status of an individual entrepreneur, as well as its features.

Individual entrepreneur: status features

Individuals who carry out entrepreneurial activities without registering a legal entity, but registered in accordance with the requirements of the law, are called individual entrepreneurs or individual entrepreneurs. They also include heads of peasant farms. The term "individual entrepreneur" was introduced in 1995 ( Civil Code, article 23). The use of the combination "private entrepreneur" is considered incorrect.

Due to the peculiarities of the term “individual entrepreneur”, the legal status of an individual entrepreneur is dual in nature. It is simultaneously subject to the norms of legislation for both individuals and business entities. Thus, a citizen gets the opportunity to conduct business without creating a new economic entity (law dated 08.08.2001 under number 29-FZ). Compared to the rights of a legal entity, they are significantly inferior to him, but against the background of other individuals, they are more extensive.

The civil law status of an individual entrepreneur is defined as the legal status of an individual entrepreneur in the field of entrepreneurial (civil law) relations, which characterizes the principles, guarantees, measures of responsibility and determines their place in the system of civil law relations, taking into account the specifics and characteristics of their activities.

The conduct of any activity not prohibited by law is a characteristic hallmark a citizen who has acquired the status of an individual entrepreneur. Exclusive rights impose certain obligations. With the adoption of the status of an individual entrepreneur, it becomes necessary to pay taxes, mandatory contributions and fees in off-budget funds. But in many cases, the entrepreneur is guided by legislative acts for individuals. So, for example, when using existing vehicles for commercial purposes, he pays taxes individual following the rules established for this category.

Defending the rights and interests of individual entrepreneurs in court and features of legal regulation

The scheme of judicial protection of the interests of an individual entrepreneur depends on the basis on which he acted in a given situation. For an individual entrepreneur who is a business entity, it will be carried out in arbitration courts. In the case when the legal relations of an individual entrepreneur are considered from the point of view of a citizen, then the court of general jurisdiction will become the venue for the proceedings. In this regard, it is very important to determine on the basis of what and in what capacity the entrepreneur acts in a particular situation.

Conducting industrial or commercial activities without proper registration is prohibited by law.

Normative legal acts regulating in detail the civil-legal status of individual entrepreneurs are currently absent. Numerous attempts to address this omission have been unsuccessful. The adoption of a single law at the federal level would to some extent simplify the interaction between entrepreneurs and their counterparties, as well as government agencies. Legislative acts existing at the local level are primarily aimed at developing and supporting small businesses. They emphasize the special status of citizens - individual entrepreneurs, but in order to find out the procedure and working conditions, it is necessary to rely on a large number of normative documents.

You can learn about the main methods of protection in the implementation of commercial activities of an individual entrepreneur by reading this article:

Positive aspects of IP status

Individual entrepreneurs have a number of advantages. All positive (and negative) points are easier to consider in terms of comparison with two categories:

• with ordinary citizens
• with other organizational and legal forms.

Citizens who are not registered as individual entrepreneurs are significantly limited in their rights. For them, it is forbidden to carry out commercial operations that involve making a profit on a regular basis. Violation this requirement may lead to liability, the nature of which - administrative or criminal - will depend on the details of the situation. Such restrictions do not apply to individual entrepreneurs. Even in terms of taxation, IP has slight advantage- he does not have to pay personal income tax, which is mandatory for all citizens (payments are made from most of the income received).

Comparing individual entrepreneurs and legal entities, one can note the minimum level of expenses during registration. In addition, for an individual entrepreneur, the volume of necessary documents is much less, there is no obligation to pay the authorized capital and register a legal address. An entrepreneur can safely conduct business without a seal and a current account. In the tax legislation for individual entrepreneurs, a greater number of tax regimes are fixed, and in the administrative legislation, penalties are provided for much smaller amounts and short time punishment.

An individual entrepreneur has the right to independently decide on what needs to spend the income received in the course of activities. The property of an individual entrepreneur is another significant advantage of status. An individual entrepreneur can use it for both personal and commercial purposes without restrictions. The family members of the entrepreneur also have a similar right.

For individual entrepreneurs, the possibilities of combining this status with the performance of other types of activities are open. So, for example, he can work for hire (except for some positions that are subject to the restriction). An entrepreneur has the right to act as a founder of a legal entity, as well as a participant or founder of a public organization. As an individual, he can enter into legal relations without restrictions. Thus, the range of possible occupations does not end with commercial activities.

Negative side of the status

Features of the legal status of an individual entrepreneur suggest the presence of not only many advantages, but also a sufficient number of disadvantages. First of all, it is worth noting the mandatory tax deductions and payments to off-budget funds. An individual entrepreneur must submit reports established by law. If the entrepreneur has employees, he performs the functions of a tax agent - transfers mandatory payments from the income of employees (individuals).

IP is subject to a number of restrictions. Certain types are closed to them. public services, including civil (Article 17, subparagraph three of paragraph 1 of the law of July 27, 2004 under the number 79-FZ). A restriction is placed on the activities carried out. Some types are not available to individual entrepreneurs (among them the production and sale of alcohol, drugs; activities related to the military sphere, etc.). Sometimes legal entities refuse to cooperate with individual entrepreneurs. One of the reasons is the difficulty with VAT (payment and refund).

An important disadvantage of IP status is the (risk) of all available property. In the event of claims arising in the course of activities, IP may be charged cash(including personal property subject to statutory restrictions) to pay off debts to government agencies or business partners in full. This fact leads to the fact that an improperly organized business will directly affect the well-being of the entrepreneur. But even for legal entities, there is a possibility of incurring significant material losses of personal property. They bear subsidiary liability (Article 399 of the Civil Code).

Sole proprietorship and marriage contract

It is necessary to pay attention to one more point, which concerns the property and income of the entrepreneur. If the individual entrepreneur is in a civil marriage (officially registered), then everything that is received in the course of activity is subject to division upon divorce. Property, the use of which was carried out only for commercial purposes, is also distributed between the spouses in equal shares. This rule applies even if the status of an entrepreneur was acquired before marriage.

A kind of “insurance” can help in this situation. To prevent unwanted division, it is necessary to conclude a prenuptial agreement, which indicates the current status and procedure for divorce. It is also worth considering that without the consent of the spouse, an individual entrepreneur cannot dispose of real estate acquired in marriage. Even if it is used only for commercial purposes.

Termination of activities

Along with the beginning of the status, its termination has a number of features that must be observed. The entrepreneur has the right to terminate this activity at any time by his own decision. To do this, he needs to fill out an application (form No. P26001) and pay a state duty (160 rubles). After submitting the necessary documents to the tax office, a positive decision is obtained and a mark is entered in the state register on the termination of activities. In addition to this reason, the reason for changing the status of an individual entrepreneur may be:

• businessman's death
• bankruptcy declaration,
• injunction to carry out such activities,
• invalid certificate of an individual entrepreneur (expiration).

The legal status of an individual entrepreneur has many advantages compared to legal entities and ordinary citizens, but there are also some disadvantages. In any case, it cannot be said that an individual entrepreneur is an ideal form for carrying out commercial activities. With the right approach to build successful business possible regardless of the legal form. In the process of work, it is important to take into account the requirements of the law, to have an idea of ​​​​the rights and obligations, and then it will be possible to avoid many problems.

Video - "Comparison of IP and LLC"

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 significance of this provision is simply necessary when choosing one or another organizational and legal form for one's 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 entrepreneurial 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 vehicles that are registered for him for commercial purposes, then he also pays transport tax as an individual, in the manner prescribed 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 its 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 the 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 of the legislature and in the form of initiatives from various public organizations. In a number of regions, local legislative acts have been adopted at the local level, which emphasize the special position of citizens with the status of individual entrepreneurs. First of all, the data legal documents associated with support measures for 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 regulatory documents that contain provisions regarding the status and features of the work of an individual entrepreneur.

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 weaknesses of such a situation. 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:

1. advantages over the usual position of a citizen;
2. 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, in without fail all citizens of the Russian Federation pay from 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 process of doing business. For example, the costs of registering an individual entrepreneur are minimal, there is no need to prepare many documents, pay the authorized capital, or 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 a greater number of tax regimes, and administrative legislation provides for 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 is not the only thing that an individual entrepreneur 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 the event of a divorce, are subject to division between the spouses.

By 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, situations are not uncommon when an entrepreneur who has the habit of spending part of the profits from a business on own needs, does 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 a mandatory procedure, which may be 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

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Almost every citizen can open an IP. The legal status of an individual entrepreneur has a lot of advantages over such legal form, How entity. After all, the owner of the IP can manage without deep knowledge of accounting and without an accountant. However, even in this seemingly simplest area, there are a lot of pitfalls, so it’s worth getting acquainted with the legal personality of an individual entrepreneur even before contacting the IFTS.

Who can become an entrepreneur

Any adult, capable and respectable citizen of the Russian Federation can receive the coveted status. Provided that he has a residence permit, and the type of future activity is included in the list allowed for this legal form.

Even if the age of majority is still far away, a citizen can try his luck with the consent of his parents (guardians), a court decision on full legal capacity or a copy of the marriage certificate.

The following persons will receive an unequivocal refusal to register as an individual entrepreneur:

• In whose name IP is already opened, since the federal law No. 129 prohibits the opening of two or more individual entrepreneurs by one citizen.
• Persons who were refused by a court decision (Federal Law No. 129, 22.1 art., 4 p.).
• Persons convicted under articles 105.125, 228.245, 126.127, 275.284, 131.135, 205.227, 150.157 of the Criminal Code of the Russian Federation.
• Incapacitated or drug addicted persons.
• Civil servants and employees of municipal institutions.
• Foreigners without a temporary residence permit.

How to get IP status

The only body that is authorized to register an individual entrepreneur is the Federal tax office. But even here there are nuances. A citizen must apply to the authority at the place of residence, but not all authorities are endowed with registration powers, for example, in Moscow there is only one such branch - the 46th.

To obtain the legal status of an individual entrepreneur, you need to provide a mandatory package of documents to the registration window of the Federal Tax Service Inspectorate and pay a state duty. Everything is simplified to the limit here, since the IP works alone and does not need a charter designed to divide the rights, duties and shares of capital between the co-founders.

You can send documents to the Federal Tax Service not only in person, but also in other ways:

• by mail with a description of the attachment;
• through confidant in the presence of a power of attorney certified by a notary;
• online through the FTS website.

Status characteristic

Entrepreneur is simple individual, which is entitled to conduct commercial activity without forming a legal entity and endowed with specific rights and obligations.

The legal personality of an individual entrepreneur is characterized by the fact that the same rules apply to individual entrepreneurs as to individuals, as well as some rules of the Civil Code of the Russian Federation that regulate the activities of legal entities. Such duality is the main feature of the civil law status of an individual entrepreneur.

What is IP based on?

As soon as the individual entrepreneur receives the USRIP record sheet (the certificate has not been issued since 2017) and collects all the documents necessary for entrepreneurship, he can start working.

Unlike legal entities, entrepreneurs do not have constituent documents, since they are not necessary. Why? A private businessman acts alone, and after registering an IP, a new commercial facility is not created, even the TIN of the IP and the TIN of an individual are the same number. But the organization can be owned by several founders at once, so they need a charter with a clear distribution of rights, duties and shares of capital. Yes, and TIN organizations are assigned a separate one, in no way connected with the TIN of the founder.

If a legal entity acts according to the charter of an enterprise, then an individual entrepreneur - exclusively based on the very fact of acquiring IP status. In contracts, he must indicate his status and indicate the required details. There is no need to make any clarifications in the form of "acting on the basis of ...".

However, in order for the actions of the entrepreneur to be legal, he must store in his accounting department and provide, as necessary, all mandatory documents. Both legally important and accounting. Legally important papers include:

• passport of a citizen of the Russian Federation;
• the USRIP record sheet, which has been issued instead of a certificate since 2017;
• certificate of registration, which was issued before 2017;
• certificate of TIN;
• notice of tax registration.

The list of documentation secondary in importance depends on the type of activity and on the specifics of doing business. It may include:

• personnel nomenclature (if the entrepreneur employs workers);
• health and safety briefings (for individual entrepreneurs with staff);
• licenses (when performing specific types of work);
• tax documentation (mandatory for all reports, declarations and other papers).

Rights and benefits

A citizen who has received the legal status of an individual entrepreneur retains the rights of an individual and acquires a number of specific rights:

• He has the right to perform all actions not prohibited by law, the purpose of which is to make a profit.
• The peculiarities of the legal status of an individual entrepreneur allow him to count on protection in arbitration courts if the dispute concerns entrepreneurial activity, or in civil courts if the dispute affects civil law relations.
• An individual entrepreneur has the right to use his personal property and property for commercial purposes, for example, vehicle. In this case, the norms of the law for individuals apply to him, that is, he will pay the transport tax as an individual. The same property can be used for personal purposes.
• IP status allows you to apply patent system taxation, on which there is absolutely no reporting. Plus, taxpayers on special regimes (USN, UTII) may not pay personal income tax and VAT.
• An entrepreneur has the right to join the ranks of employers, but in some special regimes the number of hired employees is limited. For example, only employers who have hired no more than 10 people can switch to PSN.
• A "private trader" has the right to work for hire, enter into legal relations as an individual, become a founder or co-founder of organizations. He can become the director of his own individual entrepreneur, but in this situation he will have to pay insurance premiums for himself both as an individual entrepreneur and as an employee.

Responsibilities

The special legal status of an individual entrepreneur imposes on him obligations and restrictions that apply to individuals and legal entities. Among the most important are:

• Mandatory payment of taxes, the list of which depends on the chosen tax regime.
• Paying contributions to your pension and health insurance. And if the taxpayer hired staff, then contributions for him: on account of a future pension, for medical care and in the FSS (Social Insurance Fund).
• Delivery of certain reports, the type of which depends on the taxation system, and storage of all acts, contracts, legally important papers and other documents within the period established by legislators.
• The impossibility of entering the state, civil and any other service.
• Conducting only those activities that are permitted for individual entrepreneurs and entered in the USRIP at the time of registration.

  To change the main or additional types activities, you need to apply for a change in information in the USRIP.

Another one important feature civil law status of an individual entrepreneur in that he is liable for unfulfilled obligations with all his property and property even if they are not engaged in business. And he cannot dispose of property acquired during marriage without the consent of the spouse. Of course, if this nuance is not provided for in the marriage contract.

Loss of entrepreneur status

The status of an individual entrepreneur is canceled:

• by personal decision of the businessman;
• in case of death;
• By the tribunal's decision;
• when canceling a permit for temporary/permanent residence of a foreigner in the Russian Federation.

Features of bankruptcy

Business is always risky. Even well-thought-out strategies cannot give a 100% guarantee of stable growth. If debts grow like a snowball, and the entrepreneur’s funds are no longer enough to pay debts to creditors, arbitration court makes a decision on the bankruptcy of the IP.

An entrepreneur can apply for bankruptcy:

• the business entity itself;
• creditors, but only those whose requirements are directly related to the activities of this individual entrepreneur;
• authorized body.

If the bankruptcy procedure has already begun, other creditors whose requirements are not related to the activities of the individual entrepreneur, as well as ordinary persons acting as creditors, can also present their claims.

Persons with the status of an individual entrepreneur are liable to the court with all their property. And those that are involved in entrepreneurship, and those that are used only for personal needs.

State of affairs after bankruptcy:

• The court enforces the claims of creditors in a special manner (according to the degree of importance). After making the calculations, for which there were enough funds, the businessman is released from the fulfillment of all remaining obligations related to entrepreneurship. But not from personal requirements.
• Canceled at the time of bankruptcy state registration IP and all licenses issued to the businessman.
• After bankruptcy, a citizen will not be able to restore his legal status as an individual entrepreneur. It will also not be possible to get it again until 5 years have passed after the completion of the bankruptcy procedure.

Advantages and disadvantages

The dual legal status of an entrepreneur has its advantages and disadvantages, which can help or hinder business development.

Some regions seek to support small businesses and introduce a huge number of benefits, which makes the status of an entrepreneur even more attractive. However, when choosing a form of legal personality, it is necessary to evaluate not only the simplicity and complexity of doing business. Some will be comfortable within the framework of entrepreneurship, and some will feel cramped, so before making a final decision, weigh the pros and cons.