Business personal or public - IP or LLC?

LLC or IP: limited liability company or an individual entrepreneur? Those in Shakespeare's rhetorical question are given as start-up businesses, and already have experience of doing business. Degree of responsibility here really is over, something to ponder. It is only at first glance, the differences between these legal forms of business lies in the degree of responsibility to potential lenders. Founders LLC is not responsible with their property, and the issue price - is the size of the share capital, whereas IE is personally responsible for liabilities to business partners. The list of possible objects collection is impressive: it is flat, and cars, and jewelry. But do not believe that in the event of failure of the enterprise IP will remain "a goal, like a falcon. In the mountain-entrepreneur leave: a dwelling, if the debtor and his family members residing with him, it's the only place suitable for permanent residence, land, unrelated to business activities, livestock, seeds, fuel and other necessary vital objects of property, having no direct relation to the conduct of business; household effects and furnishings and other items for personal use. Decision maker on business in the company, is hired by the director, while the IP - only himself, even if some actions have been taken by another person by proxy, because the founders are at risk only in business, and IP is responsible for all types of liability from administrative to criminal . The registration procedure for new entrepreneurs the cost of starting a business - the main problem, namely because the majority of businesses start out with the formation of IP, the price of the issue - only 800 rubles to 4,000 rubles for the registration of the LLC. The next question that arises on the agenda - a place of registration. Ltd. is registered at the registered head office, ie, permanent executive body, therefore there is need to purchase or lease of premises for office. IP register at his residence, and to conduct its activities he may in any region of the Russian Federation with its registered office or not. Registration of IP requires neither the statute nor the creation of authorized capital, or opening a bank account, nor printing, and for the company all of the above items are mandatory. The minimum authorized capital is 10 000 rubles, and for some activities opening Ltd requires much more investment. Such measures are preventative nature of money, this is one way to fight-by-night firms. Many of the tax system is going to be surprised, but as far as the choice of the tax system, and the Company, and PIs have absolutely equal rights: applicable taxes and rates are the same. This is a common tax system (DOS), a simplified tax system (STS) and a single tax on imputed income (UTII). The latter is the most simple and "economical" for the entrepreneur. With regard to documentation, the owner LLC should be pretty sweat on completing and submitting all reporting forms prescribed by law, and to allocate space to store them during the N-nnogo number of years, only a book for recording income and expenditure and business transactions. However, the company is in front of a PI plus an undeniable: it is for payments to the Pension Fund of Russia. Individual employers pay a fixed fee regardless of whether they conduct business or not. At the stage of the business need to register there today, and the negotiation process and run the project can take anywhere from three to six months, during which time the entrepreneur is obliged to pay contributions, and it is about one thousand five hundred per month: a trifle, and unpleasant. And here is a limited liability company may not pay any tax collection until you start to operate or not yet reflect the balance of the property. It should be remembered that in addition to payment of principal founders of company tax are obliged to make the budget 9% of the amount of dividends received. Accounting Needless to say, paper and financial red tape at the company much more than that of PI. The Company shall comply with cash discipline, setting limits and abide by cash, keep a record of all business transactions, its accounts payable and receivable, and property accounting firm. Primary documents, accounting and tax reporting, and accounting registers shall be kept for at least five years. PIs of all this released, but such a detailed reporting system allows the company to reduce the tax on profits at the expense of covering the losses of previous years profit this year. With regard to hiring employees, and company, and PIs recruit staff on a standard basis, making appropriate employment records of employees, leading staffing, issuing orders, keeping schedules of holidays and so on. Another difference lies in the fact that the company is obliged to make the record all business decisions, while entrepreneurs freed from the tedious procedure of logging. Disposition Of course, that IP provides for greater freedom of treatment, involving not only the simplified system of reporting and paperwork, but more free disposition of funds, which, in essence, belong to the individual. Thus, IP is not required to report on the origin of the equipment, as It can be purchased at the expense of the individual, of course, that the Company is obliged to make the equipment in the authorized capital and to document its origin. Theoretically, the IP right to dispose of their funds on the account at its sole discretion, and limit the cash to install is not required - unfortunately in 99% of cases it is theoretically and in practice, the bank asked with FE along with the company, guided by only one of them driven instructions . And if entrepreneurs can withdraw all the money from the account on your own needs without explanation, then the Company may do so only on wages, dividends and for specific purposes that do not exceed 60 000 rubles. That's why - freedom money orders make IP a popular form of business, no longer the smallest. Among other things IE does not have to surrender proceeds to the account, to comply with cash discipline. At that time, both PIs have long spent their income for the benefit of the case or not - whether parent company is still waiting for the end of the quarter and the payment of all taxes. Penalties Everyone knows that the administrative responsibility for individuals in times below the liability of legal persons, and therefore the maximum fine of not more than 50 000 rubles, and the size of penalties imposed on the Company is calculated by six zeros. Termination of the cessation of activity, as a rule, remains completely undeservedly forgotten at the time of the business organization, and totally in vain! How insulting would lose lucrative offer purchase podnadoevshego your business, simply because he is - a business designed to PIs, and therefore can not be sold, remodeled, split, etc. Similar problems may arise in the case of search of support from partners. Often there is a need for companion business whose capital or idea can give an unprecedented boost to the case and prescribe the proportion of participation and the rights of each prospective business owner in FE is impossible. But the company may be reorganized in the interests of the owners of a huge number of ways: consolidation, merger or conversion into a corporation. However, nothing prevents an individual entrepreneur is both the founder of a limited liability company. If necessary, termination of the PI will be able to close my business much simpler and easier to parent company, and in some areas, for example, relating to public service, politics, and others, where commercial activities are unacceptable, the rate of liquidation of the enterprise is very important. And if a parent company can not find willing to buy his business, especially burdened by debts and other problems, it will be forced to undergo the procedure of liquidation. In addition to issues of image and material gain obvious advantages and disadvantages of both forms of doing business in the business world, there are also such things as image, reliability, brand, brand awareness. In business, often the name is everything and if you see yourself in a couple of some years in the Forbes list, then immediately pick LLC. Incidentally, LLC also provides you anonymity and fairly reliable degree of protection from publicity, in contrast to IP, in which the name and the name of the owner of the business known to all. The choice is yours!