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Legal status of an individual entrepreneur. Legal status of an individual entrepreneur (IP) Legal status of an individual entrepreneur business law

According to statistics, individual entrepreneurship (hereinafter referred to as IP) is the most common form of doing business. Less than half of new businessmen decide to register a legal entity. What is the reason for this trend?

Professional human rights activists decided to answer the question about the legal status of an individual entrepreneur. The specialists briefly described the status of individual entrepreneurs, highlighted the main advantages of the form of economic activity, and also focused on specific risks.

Comprehensive legal liability of an individual entrepreneur

Analysts consider the low legal literacy of people to be a serious problem for domestic business. According to the results virtual internet surveys, more than 70% of all users recognize IP as the safest form of commercial activity. Lawyers, on the other hand, take the opposite view.

Behind the apparent simplicity lies the full legal responsibility of an individual entrepreneur.

The differences lie in the peculiarities of the status of an entrepreneur. According to the Civil Code of the Russian Federation, a citizen who has registered as an individual entrepreneur remains an individual. This means that liability under business contracts extends to all of his property. If, during the bankruptcy of an enterprise, foreclosure is levied on the authorized capital and property on the balance sheet of a legal entity, then in the event of the insolvency of the entrepreneur, the requirements will cover absolutely everything. As a result of an unfortunate mistake, a businessman risks losing:

  • real estate, with the exception of the only residential premises;
  • personal transport;
  • valuable papers;
  • luxury items;
  • household appliances;
  • family savings.

The list of losses is limited to only a small list of valuables described in Article 446 of the Code of Civil Procedure of the Russian Federation. Liability cannot be limited. Perhaps, the only way protection of the financial well-being of the family is the conclusion of a marriage contract. However, in this case, there will be no 100% guarantees.

Advantages of the legal status of an individual entrepreneur

What attracts start-up businessmen in individual entrepreneurship? The advantages of this solution, no doubt, are many. Among them:

    1. Ease of registration

Read also: Calculation of fixed IP contributions in 2019-2020 and earlier

Opening an IP takes only 3 days (changes in 2016). Preparation of a set of documents includes:

      • filling out a unified application form P21001;
      • a photocopy of an identity document (passport);
      • payment of state duty.

The amount of the fee has not changed and is only 800 rubles. Experts point out that even underage citizens can engage in independent economic activity. The age limit here is reduced to 16 years. The condition for registering young people as entrepreneurs is the consent of their legal representatives or emancipation. No written decision is required. With a personal appeal to the tax authority, an entrepreneur can avoid spending on notarization.

    1. Accounting and taxation

Persons registered in the status of individual entrepreneurs may refuse to maintain cumbersome records. This indulgence is dictated by the patronizing policy of the state. Businessmen have the right to independently fill out reports and calculate payments, while organizations are forced to involve a certified specialist in cooperation. In matters of choosing a tax regime, individual entrepreneurs have great rights. They are free to apply the USN, the patent system, or the DOS.

    1. Income management

Legal entities are required to report on each transaction with received funds. The founders are responsible for the distribution of profits. At the same time, dividends are subject to personal income tax. Entrepreneurs, on the other hand, are recognized as the owners of all income. They can spend the money received on the account or at the cash desk, without restrictions. No additional contributions to the state are required.

    1. Labor Relations

Entrepreneurs have the right to hire any number of employees. The only condition for drawing up contracts is registration with extra-budgetary funds as an employer. We also draw the attention of novice merchants that the law does not oblige individual entrepreneurs to open a current account and use a seal. You can accept money using CCP, BSO. Moreover, the amount of administrative fines applied to entrepreneurs for violations is an order of magnitude lower. Closing an IP is easier than a legal entity.

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 at a very 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 for commercial purposes vehicles, which are issued to him, then he also pays the transport tax as an individual, in the manner established for this category of taxpayers.

There is also no distinction in relation to other property of a citizen-entrepreneur. For example, in the event of 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

It should be noted that at the moment there is no regulatory legal act that would regulate in detail the civil law 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, at the local level, local legislative acts, 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 agencies. 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 is mandatory for all citizens of the Russian Federation to pay on most types of income received.

Advantages over legal entities

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

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

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

Summary

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

For example, it is not uncommon for an entrepreneur who has the habit of spending part of the profits from a business for his own needs, and does the same with targeted funds received as part of supporting small businesses or obtaining a loan. 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 in the future.

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.

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Entrepreneurs who want to implement their ideas and make a profit from it are required, first of all, to legalize their activities by going through the state registration procedure. At this point, there are difficulties with the choice of the organizational and legal form of doing business. To make a decision, you need to weigh all the advantages and disadvantages of existing forms of organization, but not everyone is aware of what it means to become an individual entrepreneur, and what is meant by its legal status.

Sole Proprietor - individual or legal entity

Those who have not come across the concept of "individual entrepreneur" before would like to figure out who an individual entrepreneur is - an individual or a legal entity. According to the definition given in Article 23 of the Civil Code of the Russian Federation, an individual entrepreneur is a citizen engaged in entrepreneurship without forming a legal entity. It turns out that an individual entrepreneur cannot be classified as a legal entity.

When registering an individual entrepreneur, a citizen not only retains his status as an individual - from the moment the enterprise is legalized, he acquires specific rights and obligations.

An individual entrepreneur has a unique legal status that combines the rights of ordinary citizens and legal entities

It can be concluded that individual entrepreneurs should be attributed to a separate group of persons who have rights and obligations acquired in connection with the start of business management, but at the same time are equated to individuals in all other sectors of life.

Definition and characteristics of entrepreneurial activity

Entrepreneurship - an activity that is registered in accordance with applicable laws, begins with a business owner willing to take risks in order to regularly make a profit and consists in performing any work, providing services or selling goods to the population.

The main features of the work of entrepreneurs:

  1. Only those registered in the tax authorities citizens who have received the right to be called IP. If there was no registration, the activity does not cease to be called entrepreneurial, but is recognized as illegal. This should be understood in such a way that a person will not be relieved of the need to pay debts to those with whom he entered into an agreement, the fact that at the time of the transaction he was not an individual entrepreneur. The court will not be on his side.
  2. Independence (organizational and property).
  3. Extraction of profit (the list of methods for obtaining it is closed).
  4. The presence of risk (in case of illiterate business management or by chance, circumstances may arise that will cause the loss of the property acquired by the individual entrepreneur).

Employees are not considered entrepreneurs - their activities do not have the above signs of entrepreneurship.

Legal status of IP

The civil legal status of an individual entrepreneur means the legal status of an individual entrepreneur in the field of commercial relations, which affects the list of his rights, obligations and level of responsibility and determines their position in the system of legal relations, taking into account the specifics and nuances of their conduct economic activity.

The Constitution of the Russian Federation promises the citizens of Russia the freedom to use their own skills, ideas and savings to organize their own business or realize themselves in other areas of work, if this is not prohibited by Russian laws.

The Constitution of Russia gives every inhabitant of the country the right to use knowledge, skills and savings in order to carry out commercial activities permitted by applicable law.

The legal status of an individual entrepreneur is characterized by duality - at the same time, regulations related to all ordinary residents of the country and business entities are applicable to its work.

The right to engage in entrepreneurship arises from the date of registration of a citizen of the Russian Federation, a foreigner or a stateless person as an individual entrepreneur.

If a person wishes to engage in cattle breeding or cultivation of cultivated plants, entrepreneurship will take the form peasant economy, which is also not a legal entity.

The heads of a peasant (farm) economy are required to undergo state registration and obtain the official status of an individual entrepreneur

Entrepreneurial legal capacity and legal capacity appear at the same time, and the right to entrepreneurship is exercised exclusively independently - it does not happen that an incapacitated person becomes legally capable due to the fact that a legal representative has assumed part of his obligations.

The right to organize their business as an individual entrepreneur has:

  • capable citizens (without obtaining anyone's consent);
  • partially capable minor citizens 14 years of age and older (after obtaining the written consent of legal representatives, certified by a notary) and minors who have entered into an official marriage or emancipated by a court decision or guardianship and guardianship authorities.

The law prohibits the following groups of people from opening a company:

  1. Those who are in the public service, law enforcement officers, the military.
  2. Already registered IP.
  3. Deprived of the right to conduct business on the basis of a court decision, if the ban has not expired.
  4. The enterprise of which was forcibly closed, if 12 months have not passed after the entry into force of the court decision.
  5. Those who had a criminal record or were prosecuted in the past for criminal acts, after which, according to the law, it is impossible to engage in certain types of business (for example, those convicted of murder do not have the right to open children's institutions) or entrepreneurship in general.
  6. Stateless persons and foreigners who are on the territory of the country without legal grounds (temporary residence permit, residence permit).

The law limits individual entrepreneurs in choosing an occupation. For example, the alcohol trade is available only to business owners who have registered an LLC.

Individual entrepreneurs do not have the right to sell alcohol and medicines, to open a security company and to some other activities

An individual entrepreneur performs actions on his own behalf and is subject to the same legal norms that apply to the work of commercial companies (unless this contradicts the essence of the legal relationship or legislative norms).

Individual entrepreneurs are given the right to enter into any legal commercial contracts. Also, business owners can participate in general partnerships and merge with firms and non-profit organizations for joint activities.

Individual entrepreneurs have the right to conduct business on their own, without the involvement of hired workers, or they can hire personnel for the enterprise.

Individual entrepreneurs have the right to hire employees or work independently without the involvement of hired labor

Individual entrepreneurs pay off the accumulated debts with all the property they own as owners - owned in full or by shares in joint ownership that are not involved in business affairs. Only the property listed in Art. 446 Code of Civil Procedure of the Russian Federation:


Features of the legal status of IP

There are no laws that would contain a complete description of the essence of the civil legal status of an individual entrepreneur. Regional laws are adopted with the expectation of the most active growth of small enterprises, but at the federal level no single regulatory act has been adopted.

The status of an individual entrepreneur occupies an intermediate position between the position of commercial organizations and individuals. Individual entrepreneurs are participants in economic turnover who themselves have not formed any economic entity. In this regard, the legal status of an individual entrepreneur is special and has its own distinctive features.

Existing laws emphasize the special position of individual entrepreneurs, but they have to rely on a huge number of regulations in order to determine the rules and conditions for doing business.

IP rights and benefits

An individual entrepreneur has certain rights and has benefits established at the federal and regional levels. By the way, regional authorities often provide assistance to the development of entrepreneurship.

  1. The right to engage in any legitimate commercial activity for financial gain.
  2. An individual entrepreneur in certain situations can act as an individual. For example, when operating a car in the course of business activities, an individual entrepreneur transfers transport tax to the Federal Tax Service on an equal basis with all car owners.
  3. An individual entrepreneur has the right to apply to the Arbitration Court (as an individual entrepreneur) and to courts of general jurisdiction (as a citizen of the Russian Federation).
  4. Income can be used in any amount for personal needs by the individual entrepreneur and his family.
  5. IP is exempt from the calculation and transfer to the personal income tax budget.
  6. The individual entrepreneur has the right to hire employees.
  7. The law allows IP:
    • work on labor contract(but not in any position),
    • become a founder of an LLC,
    • establish or participate in public organizations,
    • exercise all the rights available to ordinary citizens.
  8. An individual entrepreneur has the right to make his own seal imprint and open a current account, but is not obliged to do either one or the other.
  9. An individual entrepreneur and members of his family have the right to use the property involved in the work of the enterprise for personal needs.

Responsibilities and Restrictions of the IP

The status of an individual entrepreneur imposes certain obligations on its owner, and from the side of the legislation some restrictions are imposed on its work:

  1. An individual entrepreneur must pay taxes and fees in accordance with the terms of the taxation regime he prefers, as well as make payments to the FSS, PFR.
  2. Individual entrepreneurs are required to submit reports on time as commercial firms.
  3. Individual entrepreneurs must take on the role of tax and insurance agent for the employees they hire, withhold funds from their wages to pay insurance premiums and personal income tax.
  4. Individual entrepreneurs are subject to a ban on combining business activities with public service, work in the prosecutor's office and other authorities.
  5. An individual entrepreneur does not have the right to use real estate acquired during marriage if the spouse did not give him consent to this.
  6. The law limits individual entrepreneurs in the choice of types of economic activity. In particular, they are prohibited from selling medicines and alcoholic beverages, as well as from opening a security agency.
  7. The individual risks everything he owns. The property of an individual entrepreneur is not divided into personal and participating in business.
  8. An individual entrepreneur is not entitled to transfer the right to engage in entrepreneurship by inheritance; after his death, only property passes to the heir.

IP and marriage contract

Family people who are going to register themselves as an individual entrepreneur should take into account one more thing related to property and future earnings. In addition to the fact that an individual entrepreneur is not entitled to use real estate purchased during the marriage without the prior consent of the husband (wife), in the event of a divorce, the income of the individual entrepreneur and the property used in the course of business management will be divided in half.

In the event of a divorce, half of the income of the entrepreneur and property involved in commercial activities will go to the former spouse

The fact that the registration of an individual entrepreneur took place even before receiving a certificate from the registry office will not matter. Therefore, if there is any doubt about the strength of family relationships, you should protect your business by signing a marriage contract, which would directly indicate the procedure for dividing possessions in the event of a break in family ties.

Acquiring the legal status of an individual entrepreneur

The right to open a company is associated with the need to pass the state registration of the business owner as an individual entrepreneur and register it with the Federal Tax Service of the Russian Federation.

Passing state registration as an individual entrepreneur is a sufficient condition for acquiring the status of an individual entrepreneur

To do this, it is necessary that the legal capacity of a person is not limited in relation to opening his own company:

  • he must reach the age at which entrepreneurial legal capacity occurs;
  • a potential individual entrepreneur should not hold the position of a state or municipal employee, judge, etc.;
  • a citizen should not be limited in the ability to do business by a court decision;
  • a person should not be declared partially or completely incompetent on the basis of, for example, a medical opinion that he has a mental disorder.

Registration is carried out at the place of residence and is a mandatory and sufficient condition for acquiring the official status of an individual entrepreneur. The procedure must be completed in the division of the Federal Tax Service of Russia serving the corresponding territorial entity.

Acquisition of the legal status of an individual entrepreneur by a minor

In Russia, not only persons who have reached the age of 18 have the right to become entrepreneurs, but also minors in the country. But for this they will need to comply with the requirements established by law.

The legislation of Russia allows minor citizens to register as an individual entrepreneur if there are grounds for recognizing them as capable

The right to register an individual entrepreneur for minors arises if there are grounds for declaring it legally capable:

  1. Entering into a legal marriage (in the event of a divorce, legal capacity remains).
  2. Emancipation (recognition as fully capable by the court or guardianship and guardianship authorities in the absence of parental consent).
  3. Consent of both parents, adoptive parents or guardian to conduct business activities.

The minor must additionally attach one of the following documents to the standard set of papers:

  1. Notarized copy of the marriage.
  2. The decision of the guardianship and guardianship authorities to recognize the teenager as capable.
  3. The decision of the court on the onset of full legal capacity.
  4. Notarized written agreement legal representatives. If only one of the parents (adoptive parents) granted a business permit, the following is additionally provided:
    • death certificate of the second parent (if one of the parents has died),
    • a court decision on recognizing a citizen as missing (if the location of one of the parents is not established),
    • birth certificate without information about the father (if the child was brought up in an incomplete family).

In any case, a teenager cannot apply for registration as an individual entrepreneur until he is 14 years old. This is justified by the fact that Art. 28 of the Civil Code of the Russian Federation prohibits persons under the age of 14 from entering into transactions related to commercial activities. And for registration with the Federal Tax Service and registration of a company, a passport is required, which can be obtained no earlier than the specified age.

Termination of the legal status of IP

Termination of the status of an individual entrepreneur is also associated with a number of conditions that must be met, and occurs at the time of putting a mark in the Unified Register (EGRIP) on the completion of its activities by employees of the Federal Tax Service.

Do not confuse the concepts of termination and suspension of the IP - in the second case, the business owner does not carry out commercial activities for various reasons, but has the right to resume business.

The law allows an entrepreneur to refuse the status of an individual entrepreneur on any day by voluntarily refusing to continue working as such. For this you will need:

  • draw up an application in the form P26001,
  • provide a receipt for payment of state duty,
  • file a tax return from the beginning of the last reporting period to the date of completion of the IP,
  • report the completion of economic activities to extra-budgetary funds.

To terminate the status of an individual entrepreneur, in addition to own desire There may be other legitimate reasons:

  • death of an individual entrepreneur;
  • decision by the court to close the enterprise;
  • recognition of an individual entrepreneur as bankrupt (insolvent) in a judicial proceeding;
  • the entry into force of a court verdict, according to which a sanction is imposed on an individual entrepreneur in the form of deprivation of his rights to conduct business for a certain period of time;
  • cancellation of a document (or expiration of its validity), on the basis of which a foreign citizen or stateless person resided in Russia on a temporary or permanent basis.

If one of the above reasons for closing a company occurs, the state registration of an individual entrepreneur becomes invalid. Refusal of the IP status does not release the former businessman from obligations under contracts that were signed during the operation of his enterprise.

Termination of activity as an individual entrepreneur does not release the entrepreneur from his obligations under contracts concluded during the period of work

Positive aspects of the legal status of IP

The organizational and legal form of an individual entrepreneur in some aspects of doing business, when compared with an LLC, has a number of concessions, plus an individual entrepreneur can exercise some rights that ordinary residents of the country are deprived of. Within the framework of this article, we will limit ourselves to the positive aspects of entrepreneurship, due to the specific legal status of an individual entrepreneur.

Advantages of an individual entrepreneur over ordinary citizens

The status of an individual entrepreneur expands the possibilities of an ordinary individual, largely due to the fact that:

  1. An individual entrepreneur has the opportunity to conduct commercial activities, while concluding transactions and regularly making a profit.
  2. Individual entrepreneurs do not have to pay personal income tax.

Advantages of individual entrepreneurs over legal entities

If we compare individual entrepreneurs and LLCs in terms of the advantages of the organizational and legal form, it turns out that in general it is easier for entrepreneurs to start doing business and further develop the business:


Disadvantages of the legal status of IP

Obviously, in addition to the advantages of the legal status of IP, there are also negative aspects:


Video: IP or LLC (pros and cons)

Speaking about the legal status of an individual entrepreneur, it is necessary to supplement it with the rights and obligations of an ordinary citizen in parallel. People who want to organize their own business, but refuse to register themselves as individual entrepreneurs, are stopped by the fear of property liability. However, honest activity without attempts to evade obligations and a realistic view of the risks involved can protect the business owner from the adverse consequences of inept entrepreneurial work. In general, some aspects of the legal status of individual entrepreneurs contribute to the rapid development of business, while others hinder this. The main thing is to correctly use its advantages.

Whatever the industrial or commercial activity, it is always regulated by certain laws, starting with the Constitution and ending with local regulations. At the same time, legal entities have the same rights and obligations, which differ significantly from the rights and obligations of individuals. At the same time, an individual entrepreneur (IE) has the features of both one and the other subject. Accordingly, the rules governing the activities of both individuals and legal entities can be applied to it. All this creates its own peculiarities of the legal status of an individual entrepreneur, which will be discussed further.

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The nature of duality

Such a dual legal status of an individual entrepreneur has developed due to the peculiarities of national legislation. According to paragraph 1 of Art. 23 of the Civil Code of the Russian Federation, any citizen in the country has the right to engage in entrepreneurial activity without registering a legal entity. Thus, he has the right to officially profit from business activities. However, there is a difference between a legal entity and an individual entrepreneur - the latter has fewer opportunities to conduct commercial activities.

But such limited freedoms are compensated by preferential taxation, independently manage, in addition to their own property, the property of their enterprise. To better understand the features of those and other signs of IP, let's take a closer look, compare similar points.

Similarity to a legal entity

The law states that as a citizen Russian Federation, and a non-resident can engage in entrepreneurial activities on its territory, but only if this activity is registered with the tax authorities. Until the relevant certificate is obtained, such activities are recognized as illegal.

When a citizen receives the status of an individual entrepreneur, he has the following duties and rights:

  • He can conduct entrepreneurial activities only within the framework outlined by the current legislation. A complete list of possible areas of such activity is outlined by a special OKVED reference book. Please note that there is a whole list of possible activities that an individual entrepreneur does not have the right to engage in. This is any area of ​​military activity, the manufacture and sale of medicines, alcohol, and so on.
  • Use of personal property in commercial activities. For example, by personal transport you can deliver goods or go for the provision of services.
  • Settlement account, printing. These are signs that are fundamental for a legal entity, an individual entrepreneur can also have, but at will. Although in the case when he decides to work for UTII, they are a prerequisite. This mode assumes the presence of a seal or a cash register, duly registered. Then the individual entrepreneur gets the opportunity to correctly fill out the necessary reporting forms. But if the activity of an individual entrepreneur is not related to the sale of goods, you can do without them.
  • An individual entrepreneur is allowed to hire employees, but then he must independently make the necessary deductions for taxes and funds.

The legal status of an individual entrepreneur allows him to simultaneously open legal entities, work as an employee, and establish charitable organizations. The only thing is that an individual entrepreneur cannot hold a municipal or state position.

resemblance to an individual

At the same time, an individual entrepreneur has quite broad rights that are usually vested in an individual. First of all, they include the ability to use personal property for business purposes. Also, he may not pay personal income tax while his certificate of an individual entrepreneur is valid. But he is still obliged, like a legal entity, to pay all the payments provided for by the chosen taxation system.

In addition, the similarities and differences in statuses are as follows:

  • If an entrepreneur has a spouse, then they can dispose of their property only with their written permission. This applies to both common property and that which is used for commercial purposes.
  • The responsibility of the IP bears more as an individual, if you do not take into account the necessary fees for the pension fund and taxes.
  • Full responsibility for loans, regardless of who they were issued to - an individual or an individual entrepreneur. If he cannot repay the loans, his personal property is sold if the amount of his assets is greater than the debt. There is a whole list of property that cannot be sold and alienated under any circumstances.

If an individual is engaged in commercial activities without formalizing it properly, upon detection of such actions, he bears legal and financial responsibility as an individual entrepreneur.

Features of the trial

According to this duality, the question arises, how and where can an entrepreneur protect his interests? After all, legal entities resolve disputes in arbitration courts, and individuals - in courts of general jurisdiction. What should an entrepreneur do who has the signs of these two subjects? To solve this dilemma, the legislator recommends proceeding from each disputable situation individually. So, if in one situation an entrepreneur defends his rights as an individual, it is necessary to apply to a court of general jurisdiction. If his rights are affected, as a legal person - to arbitration.

Features of the legal status

Today's laws do not clearly define when a person is engaged in commercial activities and when not. On the one hand, any work that has the goal of making a profit is entrepreneurial. But after all, a citizen can, for example, sell his property not by himself, but through authorized persons or companies. Unfortunately, there is still no single list of rules that would regulate these issues.

It is also assumed that the individual entrepreneur is engaged in such activities systematically. But, without documents, it is difficult to say when and with what frequency the entrepreneur carried out such activities. Therefore, if the question does not concern taxation and various mandatory contributions, it is difficult to determine the legal status of an individual entrepreneur. Therefore, the main sign by which an individual entrepreneur is determined is his registration with a pension fund, a tax office.

IP benefits

Of course, underground business activities have a number of advantages. But when compared with the consequences that arise when such activity is discovered, the benefit is doubtful.

But, having legally issued an IP, a citizen receives a number of advantages. These include:

  • An individual entrepreneur is the sole owner of the business, except for the need to have permission to operate with property from the spouse.
  • There is no need to hold meetings of shareholders, fees and so on.
  • Reporting is submitted according to a simplified system.
  • Registration is fast and inexpensive. To get a certificate, it is enough to have 800 rubles. and in stock five business days. When registering an LLC, for example, it is necessary to contribute 4 thousand rubles to the budget.
  • An individual entrepreneur is exempt from property tax, which is intended for commercial activities.
  • Taxation on a preferential basis. An individual entrepreneur does not pay 13% personal income tax, but pays 6% for simplified taxation or 15% for UTII.

There may also be other preferential conditions that are accepted locally by the authorities. It helps to develop small business in the country.

Limitations and difficulties

In addition to various rights, benefits and benefits, an individual entrepreneur also receives a number of duties, has a special level of responsibility. First of all, it includes the ability to attract personal property to pay off debts that arose in the course of entrepreneurial activity.

When specifying the scope of responsibilities of an IP, the following should be mentioned:

  • There are certain restrictions for individual entrepreneurs by type of activity, as already mentioned above.
  • One entrepreneur cannot be registered in the name of several owners, as is the case with a legal entity.
  • An individual entrepreneur must personally participate in the conduct of business, or appoint an executive director with the right to sign.
  • The entrepreneur must make contributions to the funds even if he works at a loss or does not work at all.

Status effective date

It is important for a future entrepreneur to know not only his rights, obligations, status advantages and features. Another important nuance is the moment when the status of an entrepreneur comes into force. It is considered to be the day when a certificate of granting him the status of an individual entrepreneur was issued to an individual, as well as a USRIP record sheet. Only from that moment he has the right to openly and officially engage in commercial activities.

In the event that it is discovered that he has been driving it up to this point, he bears administrative responsibility in the form of a fine from two to 20 minimum wages.

Grounds for closing an IP

Speaking about the legal status of an individual entrepreneur, it is definitely worth mentioning the issue of the termination of his commercial activities. As a rule, the basis for this is a personal decision. It is issued in the form of an appropriate application, drawn up on the form No. P26001. You will also have to pay a state duty in the amount of 160 rubles, that is, 20% of the registration fee. When the tax termination decision is made, the register indicates information that this individual entrepreneur has ceased operations.

In addition to the listed nuances, he can finish his work on the following grounds:

  • The expiration of the document that allows non-residents to stay on the territory of the Russian Federation.
  • Expiration of the IP certificate.
  • Bankruptcy court decision.
  • A court decision to ban business activities for a specific period in connection with criminal or administrative offenses.
  • Death of a citizen registered as an individual entrepreneur.

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

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

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

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

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

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

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

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