What is the best open: LLC or IP?Determined to shake off the shackles of slavery and the office no longer work "Uncle" by developing your own business, you should know that it must be legitimate from a legal point of view.That is, you need to register with the Federal Tax Service.And for that, first of all, you should decide which of these two options is more appropriate.
Determination
To understand what is the difference between the Company and SP, and which of these two forms of doing business better to start is to look into the Civil Code and read their definitions.
SP - a natural person who has been registered in accordance with the procedure regulated by law, as the SP, the leading business.
Ltd. - business entity or association, founded by one or more persons, is divided into a share of the authorized capital.
This means that by registering as a sole proprietor, you agree that the entire business is completely yours.If it is planned that the management of the company or firm will be carried out by several persons, more profitable company record - This form provides protection for the interests of each of the founders.
Documents required for registration
difference Ltd. and SP is more and what documents are needed to register a business.In order to start working as a sole proprietor, you need:
- application for registration according to the form 12001;
- application USN (if needed);
- receipt for payment of registration fee.
for registration of the LLC, you will need more documents:
- registration statement, drawn up in the form 11001;
- protocol a decision about the design company;
- charter in 2 copies;
- receipt confirming payment of state duty;
- application USN (if needed).
In some cases, registration of a new legal entity LLC you will need to supplement the basic package of documents on the establishment of the contract (if several founders), as well as papers relating to the legal address (certified copy of the certificate of ownership or a letter of guarantee from the owner).
The fee
trying to understand that it is better to open - LLC or IP, you will, among other things, pay attention to the fact that the registration of various forms of business and the amount of duty will be different.
In accordance with paragraph 1 of part 1 of Article 333.33 of the Tax Code, the establishment of company taxed at a rate of 4 thousand.The same document defines the required fee for those who plan to work as a sole trader - in this case, the cost will be much lower, only 800 rubles.
Responsibility
Of course, the difference between the SP and the company is closely linked to responsibility for liabilities.Thus, individual entrepreneurs meet all the property that belongs to them, except for which recovery can not be distributed according to the law (24 th article of the Civil Code).But participants in an LLC are only the risk of losses associated with the activities of the organization, as part of their shares in the authorized capital.This personal property they do not respond.
Administrative responsibility
What is the best open: LLC or IP?In studying this question, you should carefully consider issues related to administrative responsibility.If an offense has been committed by an individual entrepreneur, then, in accordance with the laws of the Administrative Code, they are responsible as officials.At the same time the measures imposed in such cases on the company (for example, fines), much higher than those that apply to officials.That is to say, SP, brought to administrative responsibility, eventually suffer a much smaller losses.
address registration
Individual entrepreneurs registered place of residence, the address of permanent residence, which is specified in the passport.Ltd. - the place where the sole executive body of the organization.In fact, in the latter case you will have to rent or buy a legal address, which would entail additional costs.Features
taxation and the withdrawal of funds from the accounts
In terms of withdrawal from current account business in the form of IP, of course, is a more convenient option.You can always contact the bank in order to receive funds in cash.In this case, your expenses will be limited to the amount of tax - 6 or 15% (if you are using the simplified taxation scheme).
With regard Ltd., the output from the accounts of cash is problematic, and without proper justification, and even impossible.One possible way - the payment of dividends party organizations, which further taxed at a rate of 9% (PIT).In addition, as for the IP, necessarily require payment of the tax in the amount of 6 (if applicable general tax system for company) or 15% (USN).
liquidation
Like it or not, the question still is divided into two parts - formal and informal.From a legal point of view, LLC to eliminate need about 3-4 months of age and up to 30-40 thousand rubles for a variety of expenses.Liquidation of IP requires much less finance costs (an average of about 5000 rubles) and time (up to 2 weeks).With the closure of unofficial SP is no problem at all, but in the case of a company, you'll need additional cost (depending on the appetite of the organization, the amount can reach 30-50 thousand rubles).Immediately it should be said that later convert SP LLC will not work: have to create a new legal entity.
Attracting investment
difference between the SP and the company can be traced also in how easy it is to find investors for the business of any form.Practice shows that the individual entrepreneur to make it extremely difficult, because he has no share capital, and, in fact, he acts on his own.The situation is complicated and that the whole business belongs to the citizen, and therefore investment can not guarantee anything investor.
In the case of company everything is much easier.After all, as a minimum safeguard for the interest of the investor can be its inclusion in the list of members of the organization at the expense of redemption in the share capital.
reputation and image
There SP again a few plays.Even despite the fact that in this form of business you are responsible with all their property, status in the eyes of company partners and counterparties is valued much higher, but because many companies prefer to deal with just such organizations.
Summing up
To simplify your selection, we combine the advantages and disadvantages of IP and LLC in a single table.
| Benefits | Disadvantages | |
| SP | need to register a minimum set of documents (certified by a notary registration application, passport, a receipt for payment of registration fee). already within 5 working days, you will be registered in the local INFS. | There are certain activities that are not available for the SP (for example, banking or insurance). |
| Until 2014 SP were exempt from bookkeeping in general, but with January 1, 2014 under the new law, they should also provide all the statements to the tax authorities if necessary. | When commercial debt FE meets all of his possessions, including the one that is not involved in the business (villa, apartment and so on. D.). | |
| lack of authorized capital makes it possible not to declare the start-up capital for starting a business. | Tax revenue must be paid no later than 30 days from the date of payment. | |
| Benefits SP also rooted in the peculiarities of tax accounting Activities: 1 time per quarter is required to take the form of a report.In addition, businesses pay only one tax: personal income tax on any activity or one that dictates a common system of taxation for the SP. | If turns pass mark in 3000 minimum wage / month., The owner is required to pay value added tax. | |
| Opening requires minimal cost - 800 rubles registration fee that you pay to the notary. | At the beginning of the activities of the single tax payment may become even cause damages. | |
| total profit SP dispose of at its discretion. | unfavorable terms of banking services - rates may reach 30% of total turnover. is almost impossible to get a bank loan. | |
| not need to obtain a license for the wholesale and retail trade. | ||
| difference between the SP and the company can be traced to the period of liquidation - in the first case, you will be able to close the business for a couple of weeks. | ||
| LLC | Benefits LLC - is, first of all, that the owner is responsible for the obligations of a limited (only in accordance with the share of the deposit paid). | LLC requires several times more documents, money and time (state duty is 4,000 rubles) for registration and start of activity. |
| It is possible to change the shape of the property, to merge with another entity, to reorganize the company into several companies. | must provide the authorized capital (which, incidentally, can be symbolic). | |
| If the business is not conducted, no tax entity does not pay. | registration algorithm is much more complicated than in the case of the SP, and the liquidation may take many months. | |
| The Company reserves the right to open offices in other countries and cities. | The need to pay a much larger amount of taxes. | |
| Ltd. to buy or sell, signing an agreement in the presence of a notary. | Company is obliged to report regularly to the statistical bodies, to conduct a tax and accounting report. |
What is the best open: LLC or IP?In fact, everything depends on the specific situation and the scale of future business.If you plan to work in a big way, to work with a huge number of companies and organizations to open branches and to expand and attract new investors, it is more profitable, of course, to open a full-fledged entity.
However, it is worth remembering that for all the costs of registration, if you at some point you change your mind or something does not work, stay in the red, and the closing process can last several months.Benefits of IP allow to do this much more quickly and without major costs.
