Definition entrepreneurial activity gives Article 2 of the Civil Code of the Russian Federation. It says that entrepreneurial activities for making a profit are carried out independently at their own risk and the entrepreneur is responsible for non-fulfillment of obligations with his property. Legal relations in the field of entrepreneurship are regulated by the Constitution of the Russian Federation, the Civil Code of the Russian Federation, the Tax Code of the Russian Federation and other federal laws and legal acts Russian Federation.
Having received the legal status of an individual entrepreneur, an individual assumes an even greater duty and responsibility, now he acts not only as a citizen, but also as a taxpayer, employer and business entity. What rights and obligations appeared for an individual without forming a legal entity, we will analyze in the article.
Obligations of an individual entrepreneur
1. Tax liabilities:
- First of all, you need to register your commercial activities with the Federal Tax Service Inspectorate. Unfortunately, many begin to provide services and sell goods without registering an activity, but actions for illegal entrepreneurial activity entail an administrative fine, and if your activity has caused damage to the state and citizens, then criminal liability.
- Also, unregistered entrepreneurs will not be able to advertise in the media, and the trust of ordinary people is more caused by organizations with a legal status;
- If the selected activity is subject to licensing, then a prerequisite is the receipt of documents confirming permission to engage in the selected work;
- Quarterly or annually submit reports to the tax office, pension fund, social insurance fund, health insurance fund;
- To pay insurance premiums and taxes on a quarterly basis or at the end of the year in accordance with the selected taxation system;
- Submit documents for a desk audit at the request of the tax inspectorate.
2. Business commitments:
- Conduct legal business activities;
- Take into account the interests of customers and comply with the Law on the Protection of Consumer Rights;
- Be responsible for obligations.
Responsibility of an entrepreneur as an employer:
- Conclude employment contracts with employees;
- Timely pay wages to employees, if any;
- Pay insurance, medical premiums for employees.
3. Civil liability:
- Do not harm the environment by your activities.
The rights of an individual entrepreneur
1. The rights of an individual entrepreneur as a participant in economic relations.
- SP has the right to carry out commercial activities throughout the territory of the Russian Federation;
- Independently dispose of their profits;
- Use your own property for economic benefits;
- The entrepreneur has the right to his seal and trade mark;
- SP can take advantage of government support for small businesses;
- An integral part of the rights is the protection of legitimate interests;
- To independently coordinate their activities;
- Select clients and business partners;
- Make decisions to close your business;
- Hire employees to work.
2. Rights in the field of tax relations.
- Receive information on taxes and fees at the place of registration for free;
- Challenge illegal actions tax service;
- Choose a taxation system, unless otherwise prescribed by law;
- Enjoy tax and levy incentives.
3. The rights of the individual entrepreneur as an employer.
- The employer, for his part, has the right to demand from employees proper performance employment contract;
- Demand compensation for damage from the employee, if the latter is guilty of this.
An individual entrepreneur has a special legal status of a natural person, but with the obligations of a legal entity, and therefore an individual entrepreneur has such rights and obligations that are inherent only in this subject of legal relations. For example, the patent taxation system is allowed for use only by individual entrepreneurs. Payment of insurance premiums for oneself is made regardless of whether there was a profit. An individual entrepreneur can exercise his rights and obligations personally and through a representative by power of attorney, but in any case, the entrepreneur will bear responsibility for the illegal acts of the authorized person.
We have a video on the topic "Who is an individual entrepreneur?"
In order to profit from his labor and at the same time remain clean before the state, an individual under the legislation of the Russian Federation registers with state bodies either by creating an enterprise or having received the status of an individual entrepreneur. This procedure is established by the Civil Code of the Russian Federation and the Federal Law "On state registration legal entities and individual entrepreneurs ". Making a profit without going through such procedures will lead to the imposition of fines and other sanctions.
What is individual entrepreneurship is discussed in detail in the legislative acts of the Russian Federation.
An individual entrepreneur is an individual who conducts business and has passed state registration in accordance with the procedure established by law without forming a legal entity.
From the moment the registration forms are received, the work carried out by an individual entrepreneur for the purpose of making a profit is regulated by the same parts of the Civil Code of the Russian Federation as for legal entities, however, the processes of work and interaction with counterparties and other market participants are simplified.
Entrepreneurship Aspects:
- allows you to work and receive financial profit legally;
- expands the range of opportunities;
- assigns a certain responsibility;
- from the moment of state registration, an individual officially begins to conduct business, which means that delays and excuses can no longer be allowed.
As with any business, running a business as an individual entrepreneur has its advantages and disadvantages.
Positive sides from passing the procedure for state registration of an individual entrepreneur:
- Registration of an individual entrepreneur is easier than the establishment of a legal entity (regardless of the organizational and legal form of the latter).
- The owner solves the tasks of an individual entrepreneur independently, the state does not regulate accounting for such persons in a special order, accounting policy, etc.
- The entrepreneur himself manages the activities without recourse to the hiring of a director.
- Cash disciplines for individual entrepreneurs are simplified in comparison with enterprises. The expenditure of funds from an individual entrepreneur is directed at the discretion of the person, with the exception of cases when taxable profit is reduced due to the expense.
- Reporting to the Federal Tax Service and other government agencies requires less labor when filling out and submitting.
- Does not require a strict workflow.
- It is not necessary to draw up a business plan to obtain borrowed funds.
- Fewer claims from government agencies on the organization of work, lower penalties, less frequent inspections than from legal entities.
- The ability to use state support programs (different for individual regions, the nuances should be clarified in the structures of the subject of registration).
- The right to conclude foreign economic contracts, as in legal entities.
Despite the positive aspects, an entrepreneur is as responsible a status as a founder has when creating a legal entity.
But on some positive aspects, everything does not end, there are also disadvantages, which at the beginning of the activity rarely someone thinks about.
- It will not be possible to work with all customers, since for counterparties, cooperation with an individual entrepreneur carries great risks if the latter does not comply with obligations.
- In the event of bankruptcy and a large volume of credit obligations, debt collection occurs from the property of such an individual.
- There is a list of activities that individual entrepreneur not entitled to study.
- There is a restriction on the hiring of employees, their number is stipulated by the requirements for the selected tax regime.
- An individual entrepreneur is obliged to pay monthly insurance premiums for himself, regardless of whether he is already a pensioner or not.
- Obligations to submit reports to state authorities, including tax authorities, within the established time frame.
Despite all the nuances of activities in the status of an individual entrepreneur, this is the only legal way to do business without organizing an enterprise.
When submitting and drawing up tax reports without violating the deadlines, conducting accounting and engaging in legal activities, there will be no problems with government agencies.
Everything that goes through the government is always backed up legislative acts, no exception is the concept and activities of individual entrepreneurs.
The main laws and codes that a novice businessman is guided by in their activities:
- Federal Law "On State Registration of Legal Entities and Entrepreneurs".
- The Tax Code of the Russian Federation and the laws of the region of Russia in which the state registration was carried out.
- Law on the Licensing of Certain Activities and industry regulations such as tourism legislation, as appropriate.
- Federal Law "On".
- Federal Law No. 209 of July 24, 2007 "On the development of small and medium-sized businesses in the Russian Federation."
- Labor Code- when using the labor of hired workers.
- Federal Law No. 54 of 05/22/2003 "On the use of CCP and payments in cash, as well as using plastic cards."
The activity of an individual entrepreneur, despite the simplicity in comparison with legal entities, nevertheless imposes on an individual a lot of responsibilities in accordance with the specified regulatory acts of the legislation of the Russian Federation.
Some types of activity are subject to additional regulations, information about what other laws the entrepreneur needs to study when choosing his OKVED code.
Every entrepreneur is an independent person, and he has the right to choose the taxation system based on his own convictions, as well as, if necessary, voluntarily change it in the manner prescribed by law.
A change in the tax regime for individual entrepreneurs can occur automatically due to the excess of the norms allowed by the current regime.
In total, the tax code defines 5 modes according to which individual entrepreneurs can operate:
- OSNO (general taxation system) - implies the maintenance of a full-fledged accounting, payment of income tax, filling in a large number tax returns. At the same time, the entrepreneur gets the opportunity to conduct commercial activities without restrictions, reimburse VAT and engage in all types of activities, except for those that are generally prohibited in the country or for individual entrepreneurs.
- STS (simplified taxation system). It also has a number of difficulties in terms of accounting, while it turns out to be easier than OSNO. Within the framework of the simplified tax system, an entrepreneur can choose 2 options for the tax base: 6% of the total turnover or from 5 to 15% (the rate is determined by the laws of the constituent entity of the Russian Federation in which the activity is conducted) of income minus expenses. In this case, there are some restrictions.
- UTII (imputed tax). It can be applied by some individual entrepreneurs for certain types of activities. In this case, taxation is determined by the rate established by the state using coefficients. In the mode, there are restrictions, therefore, it is used by entrepreneurs less often than others.
- Patent system. Most often it is used by entrepreneurs involved in trade to the end consumer and in the provision of services to the population. The tax in this case is fixed, accounting is limited to filling in the book of income and expenses. Has a strict framework in terms of income, staff and OKVED.
- ESHN. Suitable for growers only.
Individual entrepreneurs have the right to apply several forms of taxation at the same time, for certain types of activities. This allows you not to exceed the limits established by the law on the simplified taxation system and patent, and to avoid restrictions on engaging in this or that type of business.
Due to the fact that individual entrepreneurship is a simplified form of state registration of a business, it has a number of restrictions. May be applicable to all entrepreneurs or depending on the chosen taxation system.
OKVED assumes the division of all types of activity into 4 groups:
- permitted - they can be dealt with by all entrepreneurs and legal entities without additional restrictions and approvals;
- licensed - you can work in the field of these codes only after obtaining a special license from the relevant government agencies;
- prohibited - types of activities that can be carried out by a limited number of enterprises (most often the public sector);
- not licensed, but requiring additional permits - it is possible to carry out activities under these OKVED only after obtaining permission from the regulatory authorities (for example, a sanitary station for public catering), are available for registration of an individual entrepreneur.
Prohibited activities that, regardless of the form of taxation, individual entrepreneurs cannot engage in:
- production and wholesale of alcoholic beverages;
- manufacture of narcotic drugs, psychotropic and pharmaceutical preparations;
- sale of electricity to the civilian population;
- space activity (flights);
- activities in the segment of non-state pension insurance and investment funds;
- employment of citizens of the Russian Federation abroad;
- the establishment of security firms and the provision of related services;
- transportation by air;
- carrying out examinations in the field industrial safety;
- activities aimed at managing hydrometeorological or geophysical processes;
- production and distribution of explosives and pyrotechnic products;
- storage, manufacture, sale and development of ammunition, weapons and components, including chemical;
- development and production of aircraft and dual-use equipment, its repair and maintenance.
Obtaining a license before starting work will be required for such activities:
- Pharmaceuticals.
- Sales of tobacco products.
- Private detective activity.
- Transportation by land or sea, etc., if provided by law.
Depending on the form of taxation, work restrictions may also be imposed.
Table 1. Restrictions on the activities of individual entrepreneurs based on the tax base chosen during registration
| Limitation | OSNO | STS | UTII * | Patent |
| State | Without Borders | Up to 100 people | No more than 100 | Up to 10 people |
| Annual turnover, rub. | Not installed | 150 million | No | 60 million |
| All are allowed, except those that are prohibited by the state for individual entrepreneurs | You can not establish companies for the provision of legal services, pawnshops and gambling business. | It can be used only for the types of activities defined in clause 2 of Art. 346.26 chap. 26.3 of the Tax Code of the Russian Federation | Everything is prohibited, except for those provided for in paragraph 2 of Art. 346 of chapter 26.4 of the Tax Code of the Russian Federation as patent activities. |
* According to UTII in the Tax Code of the Russian Federation, there are a number of additional restrictions, among them the size of retail premises should not exceed 150 sq. m, the number of cars in the vehicle fleet for individual entrepreneurs providing transportation services cannot exceed 20 units.
It is preferable for an individual entrepreneur to decide on the types of activity and form of taxation before passing the state registration. Restrictions on certain OKVED will not allow you to operate within the framework of the law and obtain the necessary certificates, and for violation of these parts of the law, criminal liability is provided.
If everything is decided with the types of activity and the form of taxation, then the entrepreneur must go through the procedure of compulsory state registration, for this, the following are submitted to the registration authority:
- Application of the established form.
- Passport of a citizen of the Russian Federation or a foreigner (with translation).
- Taxpayer identification number.
- And other forms established for certain categories individuals.
Within 5 days after submitting a full package of papers, if the entrepreneur has no claims from state bodies, he receives a certificate of state registration, and information about him is entered into the register, where all data about the individual entrepreneur will be stored until the termination of activities.
An individual, regardless of citizenship, who has reached the age of majority and is recognized as capable, can become an individual entrepreneur. For foreigners, it is mandatory to have documents confirming the legal grounds for staying on the territory of the Russian Federation (RVP or a permit for permanent residence).
In some cases, the status of individual entrepreneurs can be obtained by persons under 18 years of age if they are recognized by the authorized bodies as adults early, as a result of marriage, or with permission from their parents or other legal representatives (guardians).
Individual entrepreneurs, as well as legal entities, have the right to use the labor of hired workers. In order to get the legal opportunity to hire people to perform work, an individual entrepreneur (the requirements were valid until 2017) must go through the registration procedure as an employer in the Pension Fund, FFOMS and FSS, having received the appropriate certificates.
Since 2017, an individual entrepreneur is only obliged to submit to the FSS information that he started an employment relationship with an individual when the first employee is employed. This must be done within the time frame established by law - 30 calendar days. Otherwise, fines are provided for 90 days of delay - 5,000 rubles, over - 10,000 rubles.
The sequence of actions for registering an employee for an individual entrepreneur does not differ much from the standard procedure at enterprises of other forms of ownership:
Accept a package of documents from the future employee, which includes:
- Passport of a citizen of the Russian Federation, or an alternative, for foreign citizens. Employment of foreigners implies the registration of an extended package, with the attachment of permits, as well as the passage of additional procedures, including in the Federal Migration Service;
- SNILS;
- employment history;
- educational diploma and certificates (if required to perform work).
If the individual has not previously been employed, registration of SNILS and work book is the obligation of the individual entrepreneur, as the first employer for such an employee:
- Accept an application for registration to the state.
- Draw up an employment or civil law contract (used only for one-time work, in this case, a work book is not required).
- Issue an order for admission to the state and the beginning of the performance of labor duties.
- Draw up a personal employee card.
- Make an entry in the work book no later than a week after the signing of the employment contract.
If the employee has not worked for 5 days and quit, the labor record can be omitted.
Termination of IP
In cases where an individual entrepreneur decides to end the conduct of business activities, he must close the IP in the manner prescribed by law. The procedure for the termination of entrepreneurship, as well as registration, is regulated by the Federal Law "On State Registration of Legal Entities and Individual Entrepreneurs". The order is determined by Art. 22.3 of the specified act. In cases of forced termination of activities or death of an individual entrepreneur, registration authorities are guided by the data received from state institutions, courts or notaries.
As for the voluntary order, the individual entrepreneur must submit to the structures following documents:
- Application drawn up in accordance with the established procedure.
- Payment confirming the payment of the state fee.
- Evidence that he has submitted the necessary documents to the Pension Fund.
Until the formalization of the termination of business activities, an individual retains the obligation to pay taxes and fees provided for by law, regardless of whether the business is being conducted or not, so it should be borne in mind that such completion of work is unacceptable for the individual entrepreneur.
Carrying out activities and receiving financial benefits from them in Russia without going through the state registration procedures is an illegal form of earnings. At the same time, the formation of an enterprise is a complex and lengthy process. If the type of economic activity allows, then the majority of individuals choose registration as an individual entrepreneur. The opportunities obtained in this case are slightly less than those of legal entities, and there are no claims from the authorities and order.
I am writing an article for those who want to start their own business, but do not know how or do not have enough time to do it ...
Let's take a look at what an un is for a start!
The abbreviation SP is very often found everywhere today, after the crisis and at the time of the crisis, many "quit their jobs of their own accord", because employers did not pay wages or did not want to do so. Not the point ... The main thing at this moment many people from the hopelessness of the situation began to "wiggle their brains" where to get money?, What to live on? what to eat? etc. And many tried to make money on what they knew how and in order not to break the law and not be afraid of prosecution by the supervising authorities, they formalized their actions in a legal way by registering SP.
Why is an individual entrepreneur and not an LLC?
What is IP? An individual entrepreneur (individual entrepreneur) is an individual endowed with the rights of a legal entity but without the formation of a legal entity, who has the right to engage in entrepreneurial activity (buy, sell, provide services and even engage in production, construction, etc.), hire employees and etc.
This is how this concept is interpreted in Wikipedia: Individual entrepreneurs- individuals registered in accordance with the procedure established by law and carrying out entrepreneurial activities without forming a legal entity.
Individuals carrying out entrepreneurial activities without forming a legal entity, but who have not registered as individual entrepreneurs in violation of the requirements of the civil legislation of the Russian Federation, in the performance of the duties imposed on them by the Tax Code, are not entitled to refer to the fact that they are not individual entrepreneurs
It is more or less clear what an IP is ...
Let's return then to the question: "Why is an individual entrepreneur and not an LLC?"
To answer this question, I will give the table below:
SP or LLC? differences and differences
|
1. State duty for registration of individual entrepreneurs - 800 rubles 2. Ease of IP registration and opening period 6-8 business days. 3. The place of registration is registered. 4. Liability for his obligations with all property belonging to him. 5. Does not keep accounting records, keeps a book of income and expenses. 6. Lack of cash register discipline, the ability to freely dispose of the proceeds received. 7. Opening a current account for an individual entrepreneur is not a mandatory procedure, even if the activity is in progress. 8. In the general regime of taxation, the income tax is paid by individuals. persons 13%. 9. The individual entrepreneur pays a fixed payment to the pension fund. In 2011 - 16,000 rubles. 10. Money from the current account can be disposed of as he pleases. 11. Cannot carry out certain types of activities. 12. From 2012 it will be impossible to carry out international transportation. 13. Licenses were no longer issued for many types of activities. 14. It is easy to close the IP. |
1. State duty for registration of LLC - 4000 rubles. 2. When registering an LLC it is necessary authorized capital not less than 10,000 rubles. (there is an option not to deposit money to the bank account or to the cashier of the organization) 3. Registered at the location of the company (registration of one of the founders or general director may be the address of the LLC) 4. Liability for their obligations by contributions of participants to the authorized capital, ie. authorized capital. 5. Mandatory accounting. 6. Mandatory cash discipline in any tax regime. 7. As such, there is no obligation to open a current account, but without opening it, it is impossible to pay taxes and make payments over 100,000 rubles. one transaction at a time. (if the activity is 0, then you can not have a p / s, because you do not need to pay any taxes). 8. In the general regime of taxation on the profit received, he pays income tax of 20%. 9. Can do any kind of activity. 10. There are no licensing restrictions. 11. It is more difficult to liquidate (close) an LLC. 12. LLC is more solid. 13. In an LLC, you can change the name, OKVED, taxation system, legal address (address of the LLC location), the composition of founders, gene. directors, LLC can be bought or sold. |
Based on the data in the table, it is profitable to open a SP when you are engaged in a small (simple) business.
By the way, if you are engaged in any kind of business and have not formalized an individual entrepreneur, LLC, etc., you can get a big hit!
For conducting business without registering as an individual entrepreneur, administrative, tax and criminal liability is provided. Each of the types of liability presupposes its own rules for fixing a violation, drawing up documents and actually bringing to responsibility.
According to the Civil Code of the Russian Federation, entrepreneurial is an independent activity carried out at one's own risk, aimed at systematic profit from the use of property, the sale of goods, and the provision of services.
To confirm the conduct of activities, it is necessary to prove two circumstances: systematic and profitable. Systematic activity is considered if it is carried out two or more times a year. When a citizen once sold any property or rendered a service to someone, from this he will not be considered to be conducting business. Similarly, if a person sells goods, including systematically (that is, more than twice), but for the same money for which he bought them, or cheaper, the transactions will not be considered entrepreneurial activity. Because there is no profit.
Let's start with administrative responsibility. It is provided for by Part 1 of Art. 14.1 of the RF Code of Administrative Offenses. The possible fine is from 500 to 2000 rubles.
The decision to prosecute is made by the magistrate (Article 23.1 of the Administrative Code of the Russian Federation). The case can be considered either at the place where the offense was committed, or at the place of residence of an individual (if he submits a petition to consider the case at his place of residence). A protocol on violation, that is, conducting activities without registration, has the right to draw up: the police, the tax inspection, the territorial bodies of the Ministry for Antimonopoly Policy, the State Inspectorate for Trade, the Quality of Goods and the Protection of Consumer Rights (Article 28.3 of the Administrative Code of the Russian Federation). In addition, initiate an action against administrative offense can the prosecutor (Article 28.4 of the Administrative Code of the Russian Federation). Usually, employees of one of the listed departments come to an individual with a check, conduct an inspection of the premises or a test purchase, find that an individual is conducting his activities illegally, that is, without registering as an individual entrepreneur, after which a protocol is drawn up.
Operating without registration as an individual entrepreneur is a continuing offense. A citizen can be brought to justice only within two months from the date of drawing up the protocol.
Note. For carrying out entrepreneurial activity without registering as an individual entrepreneur, administrative, tax and criminal liability is provided.
When the protocol is drawn up incorrectly, there are contradictions in it, the judge must return the document to the department that drafted it for revision. Two months is a fairly short period, and while the protocol is being finalized, the deadline often has time to expire. If the case is not considered by the judge within two months from the date of drawing up the protocol, the judge will issue a resolution to terminate the proceedings in the case of an administrative offense.
Criminal Code of the Russian Federation
Criminal liability for illegal entrepreneurship is provided for in Art. 171 of the Criminal Code. It occurs if, as a result of an inspection carried out by the police or the prosecutor's office, it is proved that either the infliction of large damage to citizens, organizations or the state, or the receipt of income in a large amount, that is, in the amount of at least 250 thousand rubles, is proved. (note to article 169 of the Criminal Code of the Russian Federation).
Given that test purchases are usually carried out for small amounts, it is unlikely that such a criminal offense will be found in a test purchase. Cases of illegal entrepreneurship are usually discovered during the investigation of cases of legalization of proceeds from crime. The rest of unregistered entrepreneurs should not worry about criminal liability, because they have to prove the receipt of income in the amount of more than 250 thousand rubles. difficult, so the police usually open cases under Art. 171 of the Criminal Code, if there is no evidence of large-scale income.
Responsibility for illegal business with causing damage from 250 thousand rubles. up to 1 million rubles. (that is, on a large scale) the following: a fine of up to 300 thousand rubles. or in the amount of the convict's salary (other income) for a period of up to two years, or compulsory work for a period of 180 to 240 hours, or arrest for a period of four to six months.
For illegal entrepreneurship with causing damage or generating income on an especially large scale, a fine of 100 to 500 thousand rubles is provided. or in the amount of the salary (other income) of the convicted person for a period of one to three years, or imprisonment for up to five years with a fine of up to 80 thousand rubles. or in the amount of the salary (other income) of the convicted person for a period of up to six months. A particularly large amount is considered to be damage or income exceeding 1 million rubles.
If a citizen is brought to criminal responsibility for the first time, and even positively characterized by neighbors at the place of work, is not a persistent violator of public order, then, most likely, he will only be awarded a fine.
The owners of residential premises, who rent them out, need to keep in mind that for the lease of residential premises to be prosecuted under Art. 171 of the Criminal Code is impossible, regardless of the amount of rent that the investigator can prove. This was reported by Supreme Court RF in the Resolution of the Plenum of the RF Armed Forces of November 18, 2004 N 23.
tax code
In the Tax Code, liability for activities without registration is provided for in two articles at once: 116 and 117. For evading registration with the inspectorate, a fine of 10 percent of the income received is threatened, but not less than 20 thousand rubles. In the event that the activity was carried out for more than 90 calendar days, the fine will be 20 percent of the amount of income, but not less than 40 thousand rubles. (Article 117 of the Tax Code of the Russian Federation). For violation of the term of registration with the inspectorate, the fine will be 5 thousand rubles. or 10 thousand rubles, if the delay is more than 90 calendar days (Article 116 of the Tax Code of the Russian Federation). Only one of the articles can be punished. Let's figure out when each of them is applied.
A citizen must register with the inspectorate before starting to receive income from activities. Therefore, the periods of delay for the application of the above items should be counted from the moment of the first proven case of receipt of proceeds. According to Art. 116 will be fined if an application for state registration is filed before drawing up a tax audit act, but later than the day the first proceeds are received. If, on the date of drawing up the tax audit report, the application has not yet been submitted, liability arises under Art. 117 of the Tax Code.
In addition to the fine for the lack of state registration, inspectors have the right to charge additional taxes by calculation. The failed merchant will be additionally charged with personal income tax and contributions extrabudgetary funds... And if in the region where the individual entrepreneur works, the activity is transferred to UTII, and the activities of the entrepreneur fall under this regime, then instead of the income tax, the controllers will calculate the UTII. Late payment penalties will be added to the tax amount calculated by the inspectors. In addition, for non-payment of taxes, a fine is established - 20 percent of the amount of additional taxes and penalties (Article 122 of the Tax Code of the Russian Federation).
Note. In addition to the fine for the lack of state registration, inspectors have the right to charge additional taxes by calculation, as well as impose penalties and a fine for late payment.
Taxes and fines from individuals are collected in judicial procedure according to the rules provided for by the Code of Civil Procedure, in a court of general jurisdiction. So the decision of the controllers or the protocol alone is not enough, the culprit will pay the fine only on the basis of a court decision.
We pointed out the possible sanctions that threaten individuals who carry out activities without registration. The final verdict depends on the situation, the available facts and the court's decision. Most efficient method protection from inspectors - not to let them into their territory, especially if the activity is carried out by a citizen at home. The controllers have the right to enter the dwelling only by a court decision. But inspectors can get information about illegal activities not only during the inspection. Of course, there is a chance of an accidental visit, but it is small. Basically, controllers arrive after receiving messages from a businessman's competitors or complaints from offended buyers. Tax inspectorates collect information on unregistered entrepreneurs. Having accumulated information, they can schedule an on-site inspection, inspect the premises and territories used to generate income. Other departments (police, prosecutor's office, Rospotrebnadzor) will come to check an unregistered entrepreneur, most likely in connection with complaints from deceived buyers received by them.
Starting to discuss the taxes of individual entrepreneurs, it is worth noting immediately that an individual entrepreneur is not a legal entity, but an ordinary individual, but with the right to conduct business (individual entrepreneur). Due to this significant difference from LLC, JSC, etc., taxes paid by individual entrepreneurs can be much easier and simpler than for legal entities.
We recommend paying taxes and conducting business settlements in a non-cash form using a special one.
The tax burden of an individual entrepreneur consists not only of taxes themselves, but also. Unlike the taxes paid, the amount of which can be adjusted by choosing the right tax system, insurance premiums are a fixed amount. Individual entrepreneurs should not pay taxes if they are not yet in business, but insurance premiums must be paid for themselves as long as the entrepreneur's data is registered in the USRIP, i.e. immediately after registration.
Insurance contributions are understood as contributions to pension and medical insurance, as well as to the FSS, if the individual entrepreneur has employees. The amount of insurance premiums does not depend on the chosen tax regime or on whether a business is conducted at all. Further, we tried to tell about taxes and contributions of individual entrepreneurs in an understandable language and as structured as possible.
IP insurance premiums 2019
IE contributions to compulsory pension insurance
Insurance premiums of individual entrepreneurs for MPI in 2019 are a fixed amount established by the Government of the Russian Federation - 29 354 ruble for a full year. This formula is valid when calculating contributions, unless the income of the individual entrepreneur for 2019 did not exceed 300 thousand rubles. If the income received is greater, then the amount of insurance premiums increases by another 1% of income received in excess of this limit.There is also an upper limit on the amount of insurance contributions to the Pension Fund of the Russian Federation - no more than 234 832 ruble.
IE contributions for compulsory health insurance
Insurance premiums of individual entrepreneurs for compulsory medical insurance for 2019 are set in the amount of 6 884 ruble. Please note that contributions to compulsory medical insurance do not increase with income growth, and are the same amount.
In total, the contributions of the individual entrepreneur in 2019 for himself with an annual income not exceeding 300 thousand rubles (including in the absence of activity or profit from it) will be 36238 rubles.
IE contributions for their employees
If an entrepreneur uses hired labor, then in addition to insurance premiums for himself, he must pay insurance premiums for his employees.
In general, employee insurance premiums consist of:
- payments for compulsory pension insurance in the Pension Fund - 22%;
- payments for compulsory social insurance in the FSS - 2.9%;
- payments for compulsory health insurance in the MHIF - 5.1%.
Additionally, the FSS pays a contribution for compulsory insurance against industrial accidents and occupational diseases (from 0.2% to 8.5%). In Art. 58 of the Law of 24.07.09 No. 212-FZ also indicated are reduced rates of insurance premiums for employees, which can be applied depending on the types of activities, categories of employees, the selected taxation system and other conditions.
Benefits in the payment of insurance premiums
Since 2013, the so-called grace periods of non-payment of insurance premiums have been in force, when the entrepreneur does not carry out activities, because serves on conscription, is on leave to care for a child up to one and a half years, a disabled person, a person over 80 years old, or is the spouse of a contract soldier or diplomatic worker and does not have employment opportunities. To receive this benefit, you must contact your tax office, with a statement and documentary evidence that business is not being conducted.
In all other cases - additional work for hire or a civil contract, achievement retirement age, lack of activity or profit from it - the entrepreneur must transfer insurance premiums for himself. The tax inspectorate will stop calculating them only after excluding these individual entrepreneurs from the state register.
Entrepreneurs registered not from the beginning of the year do not calculate insurance premiums in full, but taking into account the days that have passed since the date.
Insurance premium calculator
It is necessary to pay insurance premiums in the amount of: - p.
The payout consists of:
Individual entrepreneurship taxes
To avoid a situation in which you will not be able to apply a preferential tax regime, you should carefully consider the choice of OKVED codes for individual entrepreneurs, since the tax authorities do not allow reporting on special regimes for a number of activities. For those who need help choosing allowed codes, we can offer a free selection of OKVED codes.
In order to prevent the taxes of individual entrepreneurs from becoming the main item of their expenses, it is worth asking yourself a few questions.
1. Will the estimated income be constant or will it change?
There is a direct relationship between the irregularity of income and the choice of the tax system, and, based on this, it is worth calculating the estimated income at least a quarter in advance. On modes STS, ESHN and OSN tax base, i.e. the amount from which taxes will be calculated arises only when the entrepreneur begins to receive real income. On UTII and PSN modes, such calculations are based on other indicators specified in the Tax Code, therefore, in these cases, the individual entrepreneur must pay taxes regardless of the amount of income received, including if there is no income at all.
In the absence of regular income at the beginning of the activity, we recommend choosing a simplified system, with which you can then switch to UTII or a patent, having previously calculated the amount of taxes for these regimes and making sure that in your case it will be more profitable.
2. Will hired labor be involved and how many workers will be required?
The number of employees when choosing a taxation system can become a limiting factor, for example, for the PSN, the number of employees should not exceed 15 people, and for the STS and UTII - 100 people. The number of employees will also determine the cost of a patent, in those regions and for those types of activities that take this indicator into account.The presence of employees will also be important in cases where the individual entrepreneur has the opportunity to reduce the tax payable at the expense of the paid insurance premiums (on all taxation systems, except patent).
3. What proportion of the income will be expenses, and can you document them?
Choosing between the options of the USN "Income 6%" or the USN "Income minus expenses 15%", one must imagine the size of the expected expenses. In cases where possible expenses will exceed 60% of income, it is worth choosing "Income minus expenses", but only if you can document the expenses. If there are no supporting documents, or the share of expenses is less than 60% of income, then the “Income” option is more profitable.
4. What types of activities in your region are included in the lists of types for PSN and UTII?
The types of activities on the UTII and PSN are determined annually by regional laws, and in your specific territory, these lists can be either expanded (for PSN) or reduced (for UTII), in comparison with those indicated in the Tax Code of the Russian Federation. It may be difficult for you now compare all these criteria, but then we will consider each regime in more detail, which will clarify the issue of choosing a tax system.
And for those who prefer an individual approach, we can offer a free consultation with a tax specialist who will help you choose a tax regime taking into account the specifics of your business and region.
Individual entrepreneurship taxes on the simplified tax system
Let's start with the most popular system among small businesses and individual entrepreneurs - the simplified taxation system (STS) or, as it is commonly called by the people, “simplified”. Entrepreneurs working on the simplified tax system are payers of the single tax, which replaces the payment of personal income tax from entrepreneurial activity and property tax used in business for them. The object of taxation on the simplified tax system is income or income reduced by the amount of expenses, so here you can choose the option or .
Revenues are not only receipts from the sale of goods and services, i.e. revenue, but also some others, called non-operating. The costs include not those that the entrepreneur himself considers reasonable, but a closed list of them, given in Art. 346.16 of the Tax Code of the Russian Federation. I must say that this list is quite extensive and for the most part recognizes the real costs of individual entrepreneurs. In addition to the costs themselves, the code also specifies the procedure for their recognition, in particular, costs can be taken into account only after payment. Responsibly it is necessary to approach documenting expenses, since violation of the requirements for supporting documents may lead to their non-recognition by the tax inspectorate.
The tax base for the "Income" option is the monetary expression of income. For the option “Income minus expenses”, the tax base will be the monetary expression of income reduced by the amount of expenses. To calculate the amount of tax payable, you need to multiply the tax base by the tax rate, which is 6% for "Income" and 15% for "Income minus expenses".
To develop certain types of activities and attract investment in the regions, local authorities can reduce the standard tax rate from 15% to 5%. You can find out what rate and for what activity is approved in your territory in the regional law on the establishment of differentiated tax rates of the simplified tax system. This preference is applicable only for the “Income minus expenses” option, and the rate for the “Income” option remains unchanged - 6%. Thus, if there is a reduced tax rate in your region, and you can confirm your expenses, then the taxes of individual entrepreneurs when applying the simplified tax system “Income minus expenses” can be minimized.
But taking into account the costs, it is important not to overdo it. here the individual entrepreneur is obliged to pay the minimum tax. What does it mean? If you have worked at a loss, i.e. expenses exceeded the income received, you will have to pay a minimum tax of 1% on the income received.
The Income option can be a particularly attractive opportunity to reduce the flat tax on premiums paid. At the same time, individual entrepreneurs without employees can reduce the accrued tax by the entire amount of contributions, and with small incomes, a situation may arise that there will be no single tax to be paid at all. Individual entrepreneurs with employees can reduce the single tax at the expense of the amounts of paid insurance premiums both for themselves and for employees, but not more than by 50%.
On "Income minus expenses" it is not allowed to reduce the single tax calculated to be paid by the amount of insurance premiums, but insurance premiums that the individual entrepreneur pays for himself and for his employees can be taken into account in expenses when calculating the tax base, which also reduces the single tax payable.
Let's finish our acquaintance with the simplified restrictions that must be met to work on this system. For individual entrepreneurs, there are not many of them - the number of employees should not exceed one hundred people, the STS is not allowed in the extraction and sale of minerals (except for common ones) and in the production of excisable goods. In addition, an individual entrepreneur may lose the right to a simplified tax after his income for 2019 exceeds 150 million rubles.
If you find the simplified system beneficial and convenient for yourself, then you can prepare an application for the transition to the USN 2019 absolutely free of charge:
Individual entrepreneurship taxes on PSN
The patent taxation system or IP patent is the only tax regime intended only for individual entrepreneurs. A patent can be obtained for any one specified in Art. 346.43 of the Tax Code of the Russian Federation. This list can be expanded by local authorities, and it is necessary to find out about which types of activities a patent can be purchased in regional laws or in the territorial tax office.
The patent is valid only in the territory of the municipality where it was issued, therefore the individual entrepreneur must submit an application to the Federal Tax Service Inspectorate at the place of the patent. For cargo transportation, it is allowed to use one patent when providing services in different regions of the Russian Federation, but only if contracts for transportation are concluded at the place of registration of the individual entrepreneur. The restrictions for this regime apply only to the number of hired workers - no more than 15, and the loss of the right to use the PSN will occur when the annual income exceeds 60 million rubles.
Calculating the annual cost of a patent is fairly straightforward. To do this, you need to know the "potential annual income" for the chosen type of activity and multiply it by 6%. You can also find out the amount of potential income from the regional law on the PSN. Another option is to calculate the cost of a patent. A patent is issued for a period of one to twelve months, but within a calendar year. An individual entrepreneur can have several patents and calculate its value for each of them.
Payment for the patent is as follows:
- A patent issued for a period of up to six months must be paid in full not later the end of its action;
- If the validity period of a patent is from six months to a year, then one third of its full value must be paid no later than 90 days after the commencement of the validity, and two thirds - no later than the expiration date of the patent.
It is impossible to reduce the cost of a patent for paid insurance premiums, but a reduced rate of insurance premiums is provided for individual entrepreneurs working in this mode.
Individual entrepreneur taxes on UTII
Imputed tax or imputation, as well as a patent, is valid only in relation to certain types of activities specified in Art. 346.26. Regional laws may not only limit this list, but also generally not allow the use of this regime on their territory (for example, in Moscow). Calculate a single tax per month for a fairly complex formula- DB * FP * K1 * K2 * 15%.
Let's see what this set of letters and numbers means:
- DB is a month in rubles (found in the table given in article 346.29 of the Tax Code)
- FP - physical indicator (indicated in the same place)
- К1 - deflator coefficient, approved annually by the Government of the Russian Federation. In 2019, K1 is 1.915
- K2 is a correction factor, set by regional laws in the range from 0.005 to 1.
Since the tax period for UTII is equal to a quarter, the tax amount is usually calculated for three months. The individual entrepreneur must pay the imputed tax by the 25th day of the month following the reporting quarter.
On UTII, as well as on the simplified tax system, it is possible to reduce the single tax payable at the expense of insurance premiums paid for oneself and for employees. If an individual entrepreneur works alone, then you can deduct the entire amount of contributions paid for himself, and when an entrepreneur has employees, then contributions for himself and for them can be taken into account, and the tax can be reduced by no more than 50%.In addition to the restriction on the number of employees (no more than one hundred), this mode also has specific restrictions on the physical indicator, for example, the area of the trading floor should not exceed 150 sq. m.
Individual entrepreneurship taxes on unified agricultural tax
The unified agricultural tax is intended for agricultural producers, i.e. those who produce, process and sell agricultural products. This also includes fisheries organizations and entrepreneurs. The main condition for ESHN - the share of income from the sale of agricultural products or catch must exceed 70% of total income from goods and services.
Agricultural tax is calculated according to the same principles as the STS “Income minus expenses”, but the tax rate is unchanged and amounts to 6% of income, reduced by the amount of expenses. Unified agricultural tax is not allowed for taxpayers producing excisable goods.
Individual entrepreneurship taxes on OSNO
And, finally, if the individual entrepreneur has not chosen any of the special regimes, then he will work on the main taxation system. In addition to the rate of 20%, 10% or 0%, you will have to pay personal income tax (PIT). The tax base for individual entrepreneurs in this regime will be income from entrepreneurial activities, to which it is allowed to apply the so-called professional deductions - documented and economically justified expenses. If the expenses cannot be confirmed, then the income received can only be reduced by 20%.
In general, the tax rate here will be 13% if the entrepreneur was a Russian tax resident in the reporting year, i.e. stayed on the territory of the Russian Federation for at least 183 days during 12 consecutive calendar months.
But if the SP is on common system decided to conduct business from abroad, and was not recognized as a tax resident, then, even as a Russian citizen, he falls into a big financial trap - all income received by him is taxed at a rate of 30%, while professional deductions cannot be used.
Insurance premiums for DOS can be taken into account in full expenses, both for oneself and for employees. It is worth choosing OCH if the bulk of your buyers will be VAT payers, who will be profitable to work with you, because they will be able to account for the input VAT. And then, you need to carefully calculate your estimated income and confirmed expenses.
Combining tax regimes to reduce taxes for individual entrepreneurs
Another opportunity for those who know how to count their money is the combination of different tax regimes. This means that you can calculate the estimated tax burden and work for one type of activity in one mode, and for another type, choose a more profitable option. Combining the modes is also possible for one activity, if you do business at different sites.There are options for combining UTII and STS, PSN and STS, UTII and PSN, ESHN and UTII. You can not combine the simplified taxation system with the unified agricultural tax and the simplified taxation system with the basic taxation system.
It is difficult to talk about the benefits of combining modes without giving examples, since for this, it is necessary to calculate the amount of taxes for the imputed regime and the patent in a specific region and by type of activity, but you just need to know that such options have the right to exist. This concludes the consideration general principles the choice of the tax system, taking into account which the taxes of individual entrepreneurs can be lawfully reduced.
If you did not manage to pay taxes or contributions on time, then in addition to the tax itself, you will also have to pay a penalty in the form of a penalty, which can be calculated using our calculator.