General information, features and differences between an individual entrepreneur and legal entities. An individual entrepreneur is an individual or legal entity

According to the civil code of R.F. IP is individual who has the right to engage in commercial activities. An entrepreneur is liable for his obligations with all his property.

What form of business is individual entrepreneurship?

Many people cannot understand the organizational and legal affiliation of an individual entrepreneur: is it an individual or a legal entity? Answer to this question indicated in Art. 23 of the Civil Code of the Russian Federation, according to which any citizen has the right to engage in labor activity as an individual entrepreneur without forming a legal entity.

The concept of a legal entity is interpreted differently: it is a registered organization (LLC) with founders and authorized capital. The individual entrepreneur leads entrepreneurial activity without one.

It is worth noting that an individual entrepreneur in many cases is vested with the same powers as an LLC. For example, he can also open a current account, enter into contracts and carry out almost the same types of activities, with the exception of some of them.

What is the difference?

Thus, each of the organizational and legal forms has its own pros and cons, and any existing individual entrepreneur can register an LLC by contacting the Federal Tax Service with documents, but he will have to pay taxes and fees for all forms of activity.

Example: citizen, being the founder of an LLC engaged in the production building materials decides to sell clothes through an online store. To do this, he has the right to separately open an individual entrepreneur, but he is obliged to pay taxes to the Federal Tax Service, contributions to the Pension Fund and Compulsory Social Insurance Fund for both organizations.

IN in this case, wondering - an individual entrepreneur is a legal entity. face or ordinary physical face? - it is necessary to proceed from the form of business that the citizen conducts. When resolving legal disputes, filling out documents, submitting reports, he will be a legal entity from an LLC, and an individual from an individual entrepreneur.

Consideration of controversial situations in court

In accordance with the Arbitration Procedure Code of the Russian Federation, the Arbitration Court has the right to accept appeals from organizations and individual entrepreneurs when the following disputes arise:

• Economic: for example, about debts.
• Administrative: when conducting a business that is not legally registered.
• Organizational: bankruptcy of LLC.
• Tax: failure to pay advance payments on time.
• Corporate: when causing losses caused by co-founders, founders and participants to a legal entity.
• Transnational economic: in case of failure to fulfill obligations by a company registered in the territory of the Russian Federation in relation to a foreign citizen, or vice versa.

When making a decision to impose penalties, the court has the right to be guided by data on the personal property of an individual entrepreneur. If a fine is imposed on an LLC, then the arbitration can only take into account the authorized capital of the organization.

Due to the fact that the individual entrepreneur is an individual, or an organization - legal entity, then all conflicts and disputes between them fall within the competence of the Arbitration Court and are resolved only in judicial procedure.

Addition

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Since the legislation of the Russian Federation and other countries provides the opportunity to conduct business activities, both through an individual and a legal entity, the question of classifying individual entrepreneurs into these two categories is relevant.

This article offers a detailed understanding of what a legal entity is and what an individual is and answers the question of whether an individual entrepreneur is a legal entity or an individual, and what consequences follow from this.

What is a legal entity

The concept of a legal entity arose quite a long time ago. Some experts attribute the appearance of the first legal entities to the times Ancient Rome. But practical use this concept, and this, as it is called, “institute of law” began relatively recently. The birthplace of the modern understanding of a legal entity is England. And since case law operates in this country, the birth of a modern legal entity occurred in a legal dispute.

The case of Solomon v. Solomon & Co. (1897) is the starting point that influenced the development of the modern understanding (doctrine) of a legal entity. For the first time, the decision in this case clearly stated that the company is an independent entity, a participant in civil law relations and a defendant in court. It participates in civil transactions on an equal basis with individuals. The founders and other participants of the company are not liable for its debts.

This understanding of a legal entity is reflected in Russian legislation. Modern for new Russia the understanding of the term “legal entity” was given by the Civil Code of the Russian Federation, which came into force (first part) on January 1, 1995.

In a slightly modified edition in 2014, the Civil Code of the Russian Federation gives following characteristics legal entity:

• separate property,
• the ability to answer your debts with property,
• a legal entity exercises civil rights on its own behalf, as well as acquires them,
• able to bear civic responsibilities,
• a legal entity acts as a defendant and plaintiff in court.

When created, a legal entity must be registered in the state register of legal entities. In this case, one of the organizational and legal forms provided for by law must be selected for registration.

In addition, it is worth adding that a legal entity is not liable for the debts incurred by its participants (shareholders, founders), and they, in turn, are not liable for its debts. There are a number of exceptions to the last rule, in particular, if the founders, when creating a legal entity, did not fully pay the authorized capital. But even in this case, the liability of the founders is limited only by the size of the unpaid share.

Looking ahead a little, it is worth noting that the so-called doctrine of “lifting the corporate veil” has not yet taken root in Russia. Generated also by the precedent legal system, which is not typical for our state, this doctrine is quite popular abroad.

The essence of the doctrine is that if a legal entity was used as a tool for entrepreneurial activity, then the persons who stood behind this legal entity can be subject to civil liability measures that are usually applied to legal entities themselves. One of the few attempts to apply this doctrine in Russia is the decision in the Parex Bank case.

The convenience of working through a legal entity when conducting business is explained precisely by the protection of the company’s founders from the claims of its creditors. A legal entity can conduct unprofitable activities, accumulating debts and “collecting” claims from creditors. And if no intent (fraud) is found in the actions of its founders, then measures or any liability cannot be applied to them. Considering that the vast majority of legal entities in Russia are registered with a minimum authorized capital of 10,000 rubles, then this issue is quite relevant.

Banks that issue loans and companies that have qualified lawyers on staff, in order to avoid the possibility of non-repayment of loans or other consequences of non-fulfillment of obligations, a necessary condition concluding contracts (for the provision of loans, loans, for example) involves obtaining guarantees from counterparties. For example, a pledge of property, or a guarantee for possible debts of counterparties on the part of the founders.

What is an individual

Further, to answer the question: “Is an individual entrepreneur a legal entity or an individual?” It is necessary to consider what a natural person is. The Civil Code effectively equates the concepts of “individual” and “citizen”. This follows from the title of the third chapter of the code “Citizens (individuals)”. But here we must not forget that the effect of civil legislation applies equally to both Russian citizens and foreign citizens and stateless persons, unless otherwise specified in the law. But if we are talking about administrative legislation, then its norms apply depending on the presence or absence of citizenship of a particular individual.

From the norms of the Civil Code, the following characteristics of an individual can be distinguished:

• legal capacity - an individual is capable of being a participant in civil legal relations and, accordingly, a bearer of civil responsibilities.
• legal capacity - an individual is capable, through his actions, of acquiring and then exercising rights and obligations, this characteristic depends on the age of the person.
• an individual, being a debtor, is liable for his obligation with all his available property, with some exceptions established by law.

In general terms, these characteristics are similar to those of a legal entity. What distinguishes an individual from a legal entity? Here are some significant delineation criteria:

• an individual exists in reality - a legal entity is a fiction,
• an individual can be a citizen of the Russian Federation, a foreigner, a stateless person - legal entities are divided according to organizational and legal forms - LLC, JSC, State Unitary Enterprise, etc.
• In order for a legal entity to become a full participant in civil legal relations, its registration is necessary, for an individual - reaching the age specified by law,
• a legal entity, if it is a commercial organization, is immediately created to engage in entrepreneurial activities - an individual (person) may never engage in such activities.

From a legislative point of view, all activities carried out by an individual can be divided into four types:

• labor activity and service
• provision of services and performance of work in civil law,
• private practice,
• individual entrepreneurial activity

The first case refers to the activities that most individuals engage in. The majority of citizens get a job or go into service. In their case, the activity is carried out on the basis of an employment contract or service contract with the employer.

The second type includes citizens who, without imprisonment employment contracts, perform one-time services or work. Relations with customers, in such cases, are generally regulated by civil law and are specified in civil contracts. The key point in this situation is that such services (work) are performed by an individual one-time - such activities are not of a systematic, permanent nature.

Private practice includes the activities of notaries, lawyers, and arbitration managers. This type of activity is as close as possible to entrepreneurial activity, but at the same time has an important social orientation. Therefore, it is regulated separately by law.

And finally, citizens are entrepreneurs. They conduct constant, profit-making activities, carried out at their own peril and risk. They are liable for their debts with all their property, with the exception of that property on which, according to the law, it is prohibited to foreclose. A citizen may be subject to bankruptcy proceedings in cases and in the manner provided for by law.

In addition to these types of activities carried out by individuals, in the near future in Russia it will be possible to carry out activities on the basis of a patent, without registering as an entrepreneur.

What is an IP?

So, having analyzed the two indicated categories, between which it is necessary to make a choice, we will determine what the individual entrepreneur belongs to, a legal entity or an individual.

Firstly, it is worth recalling what the abbreviation IP stands for. This name, which replaced the previously widely used one, means “individual entrepreneur”. The Civil Code does not provide an explanation of the term “individual entrepreneur”. Instead, it is said that an individual can engage in entrepreneurial activities after registering as an individual entrepreneur.

Issues related to registration are the responsibility of the tax authorities. The activities of tax authorities are regulated by the Tax Code of the Russian Federation. This is where we find the concept of an individual entrepreneur. According to the Tax Code of the Russian Federation, an individual entrepreneur is characterized by the following characteristics:

• registration in accordance with the procedure established by law,
• carrying out business activities without forming a legal entity,
• These are only individuals.

These characteristics of an individual entrepreneur (individual entrepreneur) allow us to unambiguously answer the question “Is an individual entrepreneur a legal entity or an individual?” An individual entrepreneur is only an individual. All that remains is to answer why this question arose and what it is connected with.

The fact is that, according to the norms of civil legislation, the norms and rules governing the activities of legal entities - commercial organizations - are applied to the activities carried out by individual entrepreneurs. Accordingly, if the law somewhere states that certain rules apply to legal entities, therefore, it must be understood that they also apply to individual entrepreneurs, unless otherwise stated. This issue is resolved in a similar way in the field of legislation on administrative liability.

Often people who discover own business, cannot clearly understand their new legal status. Whether the individual entrepreneur remained an individual or became a legal entity.

The current legislation does not have extremely clear formulations on this matter, which seriously complicates the explanation of the current legal situation.

In essence, an individual entrepreneur remains an individual (hereinafter referred to as a PE), but at the same time is endowed with the rights of a legal entity (LE). This is how his dual position develops. The entrepreneur continues to enjoy all the rights of a citizen of the Russian Federation, as in the Federal Law. A legal entity cannot exercise such rights under any circumstances.

At the same time, an individual entrepreneur receives broad rights as a business entity. In many ways they are similar to the rights of legal entities. Since this combination of rights is permanent, in a sense, they are mixed.

An entrepreneur trading near a polling station on election day uses the opportunities of a legal entity for entrepreneurial activities. However, he can go to this polling station at any time and exercise his FL right by voting for any candidate.

Thus, an individual entrepreneur remains a sole proprietor, but he has a very significant part of the powers inherent in a legal entity. It is impossible to call an individual entrepreneur a legal entity, since the current law contains a direct answer to the question of its status. Civil Code Russian Federation without reservation calls any individual entrepreneur an individual. This formulation is quite clear and does not require clarification.

The law often emphasizes that the duality of the position of an individual entrepreneur lies in the fact that he enjoys the rights of both a sole proprietor and a legal entity. The fact that an individual entrepreneur refers specifically to individuals, even though he has a special status, is not disputed by any legislative act.

Most types of activities that a legal entity has the right to engage in are available to an individual entrepreneur. In addition, there are types of activities that can only be carried out by citizens with the status of Individual Entrepreneur (for example, the provision of private detective services). An individual entrepreneur can act as a founder of a legal entity, like a sole proprietor. He has the right to engage in paid work. Often, individual entrepreneurs enter into agreements with other persons as individuals and not as legal entities. This allows you to significantly reduce the amount of taxes that must be paid when making such transactions.

Thus, the status of an individual entrepreneur opens up for its owner ample opportunities. It is significantly more advantageous than the position of an ordinary individual or legal entity.

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Why is it necessary to open an individual entrepreneur or legal entity?

Any activity that generates systematic income is considered entrepreneurial. For example, an individual who is constantly engaged in paid car repairs of other people's vehicles in the personal garage of a garage-construction cooperative is conducting entrepreneurial activity.

In order not to break the law, you should register an individual entrepreneur or legal entity. Otherwise, the citizen may be brought to administrative (Clause 1 of Article 14.1 of the Code of Administrative Violations of the Russian Federation (CAO) or criminal (Part 1 of Article 171 of the Criminal Code of the Russian Federation) liability.

Control in this area is exercised by the Federal Tax Service (FTS). And you shouldn’t hope that no one will find out about you and that nothing will happen to you for it. Neighbors and competitors, as a rule, keep a watchful eye on each other and often write appropriate statements about receiving unearned income.

What is the significant difference between an individual entrepreneur and an LLC?

Question about differences between individual entrepreneur and LLC most often faced by budding entrepreneurs. These forms are the most common in the field of small and medium-sized businesses. It is a mistake to think that one is worse than the other. The choice is made based on specific tasks.

There are several factors that will help determine the feasibility of registering as an individual entrepreneur or LLC:

• number of people planning to do business;
• the scale of the business being opened;
• types of activities of the future enterprise.

In accordance with the answers to these questions, a decision is made on the most appropriate form of organization.

However, it should be understood that there is one fundamental difference between an individual entrepreneur and an LLC. Despite the fact that an individual entrepreneur works on an equal basis with a legal entity, the entrepreneur is first and foremost a citizen and therefore bears personal responsibility (including his property) for all decisions and actions of the individual entrepreneur. And an LLC is an independent player in the market, acting as a screen for the founders: they will not bear any personal responsibility.

Comparative table: what is the difference between an individual entrepreneur and an LLC

Recommendations for choosing a legal form for certain types of activities: trade, construction, transportation

If we return to the question, What is better: individual entrepreneur or LLC?, applied to specific types activities, the scope of the article will not allow us to cover them all. But in the business world there are popular industries that can be used to illustrate general progress reasoning.

Trade

For retail non-food products, even if it is a large store with an area of ​​more than 150 square meters. m, individual entrepreneur is the most attractive form due to the ease of opening and the ability to apply the patent taxation system.

Owners of small grocery stores may also like the organizational ease of individual entrepreneurs. However, for large supermarkets, and especially alcohol trade, mandatory LLC will be required.

Construction

This is a huge area of ​​activity that includes different kinds construction and installation works, such as preparation construction site, construction of buildings, communications, repairs and decoration, etc. To obtain the right to conduct many of them, instead of the canceled licensing, membership in self-regulatory organizations for design, survey, and construction is required.

Theoretically, nothing prevents an individual entrepreneur from complying with all the requirements and becoming a participant in this market. But we should not forget that construction is associated with very large capital investments by customers, and therefore the same obligations on the part of individual entrepreneurs. In this case, the individual entrepreneur, as mentioned above, is responsible for his activities with personal property.

Transportation

Those wishing to engage in passenger and cargo transportation, as a rule, register an individual entrepreneur. The reason is that they prefer to do this business individually, using their own transport. But even if a company is organized, for example a taxi, the individual entrepreneur still has priority. It is in this case that you can take full advantage of all the concessions in the field of abolishing accounting and simplifying financial reporting.

If you plan to engage in large-scale transportation, then the opening is associated with large cash injections from several individuals to create a fleet of vehicles. In this case, naturally, an LLC is opened.

Thus, at first glance, an individual entrepreneur is more profitable than an LLC for many reasons - due to simplicity organizational issues and simplified reporting. But upon careful analysis, it becomes obvious that, for example, the tax burden (the most pressing issue) depends not on the form of business organization, but on the type of activity.

By the way, there is a fairly strong idea that potential partners often prefer to communicate with organizations, which is why LLC is a more prestigious form. This is wrong. In fact, it makes no difference to suppliers, clients and resellers who they deal with. The main thing is that the counterparty is respectable.

The following conclusion can be drawn. If several people plan to run the business, then they will definitely have to register an LLC. If you have large-scale plans for the future regarding further expansion by attracting investments, an LLC is also recommended. If the case is individual, intimate, then individual entrepreneur is the best form.

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○ The concept of an individual entrepreneur.

From the point of view of legislation, an individual entrepreneur is not a legal entity. This follows from the definition.

Art. 11 Tax Code of the Russian Federation:
Individual entrepreneurs are individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, heads of peasant (farm) households. Individuals carrying out entrepreneurial activities without forming a legal entity, but who have not registered as individual entrepreneurs in violation of civil law requirementslegislation of the Russian Federation, when performing the duties assigned to them by this Code, do not have the right to refer to the fact that they are not individual entrepreneurs.

In accordance with this text of legislation, an individual entrepreneur is an individual who conducts commercial activities. This is quite clear. However, the legal status of an individual entrepreneur implies some similarity with the status of a legal entity. Let us further understand the similarities and differences between these concepts.

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○ Signs of individuals and legal entities.

An individual is a person who has rights and obligations within the framework of the legal regulation of the state. An individual has certain characteristics:

• Identification is carried out by full name.
• There is no need to undergo additional registration, except for obtaining a birth certificate and a general passport.
• Availability of the right to carry out economic transactions with other persons and organizations.

A legal entity is an organization registered in the register and having separate property to which it is liable for its obligations.

Art. 48 Civil Code of the Russian Federation:

1. A legal entity is an organization that has separate property and is responsible for its obligations, can, in its own name, acquire and exercise civil rights and bear civil obligations, and be a plaintiff and defendant in court.
2. A legal entity must be registered in the Unified State Register of Legal Entities in one of the organizational and legal forms.
3. Legal entities in whose property their founders have real rights include state and municipal unitary enterprises, as well as institutions.

Legal entities have the following characteristics:

• Availability of registration in a unified register.
• Certain property owned.
• Separate name and registered address.
• The presence of a structured team with managers and subordinates.
• The right to obtain licenses for certain types of activities that are not available to other forms.
• Mandatory presence of a stamp and a bank account.

A legal entity is responsible for conducting activities with the property belonging to it. This feature is identical to the responsibility of an individual and an individual entrepreneur.

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○ Comparison of individual entrepreneurs and ordinary individuals.

In fact, an individual and an individual entrepreneur have many common characteristics. However, conducting certain types of business activities without registration is not allowed. Let us tell you what the similarities and differences are between an individual entrepreneur and an individual.

✔ General signs.

TO common features The following facts can be attributed:

1. Legally, an individual entrepreneur and an individual are equal.
2. This is a specific person with a full name and identification number.
3. The place of permanent registration is the same.
4. An individual entrepreneur can act as a citizen when concluding transactions.
5. Individuals and individual entrepreneurs have the right to conduct business transactions, enter into transactions, formalize Required documents and perform legally significant actions.
6. In case of debt formation, individuals and individual entrepreneurs are liable with property in their ownership.

From the point of view of legislation, an individual entrepreneur is the status of an individual. However, there is still a difference between these concepts.

✔ Distinctive features.

The difference between an individual entrepreneur and an individual lies in the income taxation system and the permissible scope of activity. For example, an individual who has the status of an individual entrepreneur cannot be an employee and at the same time conduct business activities. A person, being an individual entrepreneur, can be an employee, but as an individual.

Many types of commercial activities are not available to an individual who does not have individual entrepreneur status. So, for example, he cannot open a pavilion and sell any goods there or provide services household services to the population.

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○ Comparison of individual entrepreneurs and legal entities.

Quite often you can find identification of the statuses of individual entrepreneurs and legal entities. This is not entirely correct from the point of view of legislation, but nevertheless there are certainly similarities between these statuses. Let's look at the similarities and differences.

✔ Community in activities.

The commonality of activities lies in the following factors:

• The purpose of creation is to conduct business and make a profit.
• The need to go through the state registration procedure.
• Availability of taxation systems - simplified tax system, UTII, etc.
• Possibility of employment of employees in accordance with the Labor Code of the Russian Federation.
• They may have a bank account (not required for individual entrepreneurs).
• In court there can be a plaintiff and a defendant.

This is where the similarity ends. Let's look at the differences between individual entrepreneurs and legal entities.

✔ Distinctive characteristics.

The main differences are as follows:

• An individual entrepreneur is a specific person, a legal entity is an organization.
• Registration of a person as an individual entrepreneur is carried out at the place permanent residence, and a legal entity is registered at a legal address.
• An individual entrepreneur operates independently, a legal entity is a group of people (however, both of them can be employers).
• The property of the organization and its founders is separate from each other, the individual entrepreneur, in turn, is liable with all his property, as an individual.
• Individual entrepreneur does not have its own name.
• A legal entity is required to have a seal and a bank account; for individual entrepreneurs, both are advisory in nature.
• The activities of a legal entity are impossible without the presence of statutory documents.

Organizations have the right to conduct commercial activities in any area that does not contradict the law. There are certain restrictions for entrepreneurs.

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○ What does the tax office say?

From the point of view of tax legislation, individual entrepreneurs are individuals with a special status. However, the Federal Tax Service provides preferential tax systems for individual entrepreneurs with minimal reporting.

Individual entrepreneurs are in a special position. Separate norms and rules are being developed for them.

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✔ Can an individual entrepreneur be converted into a legal entity?

There is no direct prohibition on transformation in the legislation, that is, it is allowed. To do this, you need to contact the territorial branch of the Federal Tax Service and submit the relevant documents.

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1.4. How does an entrepreneur differ from a legal entity?

Having analyzed the norms current legislation, we can dwell on some differences between the procedure for carrying out business activities in the status of an individual entrepreneur and the procedure for carrying out business activities using any form of commercial organization.

In particular, the following differences can be distinguished:

A) when registering a legal entity, the founders make contributions on their own behalf to the property of the organization. This could be money, inventory or non-current assets. From this moment on, the property of a legal entity is accounted for separately from the property of the founders. Let's assume that the organization suffered losses. Creditors demand repayment of debts. A legal entity can pay off creditors only within the limits of its property. That is, to give away fixed assets, securities, goods, finished products, etc. In this case, the founder can sleep peacefully: it is impossible to take away the personal property of the founders for debts, since the organization is liable for debts only with its own separate property (Article 48 of the Civil Code RF). In order for a citizen to register as an individual entrepreneur, it is not necessary to form an authorized capital. But at the same time, an individual registered as an individual entrepreneur is liable for his obligations (including those assumed as an individual entrepreneur) with all his property (Article 24 of the Civil Code of the Russian Federation).

B) upon registration, an individual entrepreneur cannot, of his choice, rent an office in any district of the city and register with the tax office at his location, unlike a legal entity.

State registration of a legal entity is carried out at the location indicated by the founders in the application for state registration of a permanent executive body, in the absence of such an executive body at the location of another body or person entitled to act on behalf of the legal entity without a power of attorney.

State registration of an individual entrepreneur is carried out at his place of residence (clause 3 of article 8 of Law No. 129-FZ). Place of residence - a residential building, apartment, room, residential premises of a specialized housing stock (service residential premises, residential premises in a dormitory, residential premises of a mobile fund, residential premises in a building of the social service system and others) or other residential premises in which the citizen is constantly or primarily lives as an owner, under a lease (sublease), a lease agreement for specialized residential premises, or on other grounds provided for by the legislation of the Russian Federation, and in which he is registered at the place of residence (paragraph 8 of Article 2 of the Law of the Russian Federation of June 25, 1993 No. 5242-1 “On the right of citizens of the Russian Federation to freedom of movement, choice of place of stay and residence within the Russian Federation”).

Therefore, in order to obtain the status of an individual entrepreneur, a citizen must submit the necessary documents to tax office at the place of residence. But it should be noted that, for example, the registration authority of Moscow is the Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow. Therefore, both individual entrepreneurs and organizations must submit all necessary documents there when registering. If a decision is made on state registration of a legal entity or individual entrepreneur, the registering (tax) authority (Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow) makes a corresponding entry in the database of the Unified State Register of Individual Entrepreneurs (USRIP).

C) individual entrepreneurs may not engage in all types of business activities that organizations can carry out. Types of business activities that can only be carried out by organizations and cannot be carried out by individual entrepreneurs include, for example:

– activities related to the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products in the Russian Federation in accordance with Law No. 171-FZ. Thus, supplies of ethyl alcohol are carried out only by organizations that have licenses for the production, storage and supply of produced ethyl alcohol, including denatured alcohol (clause 4 of article 9 of Law No. 171-FZ). Also, Law No. 171-FZ establishes that the production and circulation of alcoholic (with the exception of retail sales of beer and beer drinks, cider, poire, mead) and alcohol-containing food products is carried out only by organizations (clause 1 of Article 11 of Law No. 171-FZ). Retail alcoholic products(except for beer and beer drinks) is carried out by organizations (clause 1 of Article 16 of Law No. 171-FZ). In addition, Law No. 171-FZ establishes that the production and circulation (except for retail sales) of alcoholic products containing ethyl alcohol more than 15 percent of the volume of finished products (except for the production of vodka) has the right to be carried out by state-owned enterprises, as well as other organizations that have a paid-up authorized capital (authorized fund) in the amount of at least 10 million rubles. The production of vodka has the right to be carried out by state-owned enterprises, as well as other organizations that have a paid-up authorized capital (authorized fund) in the amount of no less than 80 million rubles. (Clause 2.1, Clause 2.2, Article 11 of Law No. 171-FZ);

– types of activities falling within the scope of Law No. 61-FZ. For example, manufacturers medicines there can only be an organization engaged in the production of medicines in accordance with the requirements of Law No. 61-FZ;

- activities that arise when pawnshops provide loans to citizens on the security of things belonging to citizens and activities for storing things (Federal Law of July 19, 2007 No. 196-FZ “On Pawnshops” (hereinafter referred to as Law No. 196-FZ)). Thus, a pawnshop can only be a legal entity - a specialized commercial organization, the main activities of which are providing short-term loans to citizens and storing things (Clause 1, Article 2 of Law No. 196-FZ);

– microfinance activities. Thus, microfinance activity is the activity of legal entities that have the status of a microfinance organization, as well as other legal entities that have the right to carry out microfinance activities to provide microloans (microfinance) (clause 1, clause 1, article 2 Federal Law dated July 2, 2010 No. 151-FZ “On microfinance activities and microfinance organizations”);

– activities related to the organization and conduct of gambling on the territory of the Russian Federation. Thus, the organizer of a gambling game can only be a legal entity engaged in organizing and conducting gambling activities (Clause 5, Article 4 of the Federal Law of December 29, 2006 No. 244-FZ “On state regulation of activities for organizing and conducting gambling and on amendments to certain legislative acts of the Russian Federation" (hereinafter referred to as Law No. 244-FZ));

– private detective activity. Thus, an individual cannot register as an individual entrepreneur to carry out private security activities. Private security activities can only be carried out by private security organizations. In accordance with Law No. 2487-1, a private security organization is an organization specifically established to provide security services, registered in accordance with the procedure established by law and licensed to carry out private security activities. A private security guard can be a citizen of the Russian Federation who has reached 18 years of age and has passed vocational training to work as a private security guard, having passed the qualification exam, received a private security guard certificate and working under an employment contract with a security organization (clause 2 of article 1.1 of Law No. 2487-1). Conversely, Law No. 2487-1 does not contain such a concept as a “detective organization” or a “private detective agency.” A private detective can only be a citizen of the Russian Federation, registered as an individual entrepreneur, who has received a license in the prescribed manner to carry out private detective (detective) activities and provides services provided for in Part 2 of Art. 3 of Law No. 2487-1.

D) before the beginning of 2012, there was another difference in the activities of individual entrepreneurs and organizations. We are talking about the procedure for carrying out cash transactions. Previously, the Procedure for conducting cash transactions in the Russian Federation was in force, which was approved by letter of the Central Bank of October 4, 1993 No. 18. It applied to enterprises, associations, organizations and institutions, regardless of organizational and legal forms and scope of activity, and individual entrepreneurs were not mentioned in it . In this regard, it was explained that the previously existing procedure for conducting cash transactions in the Russian Federation did not apply to individual entrepreneurs (letter of the Ministry of Finance of Russia dated March 2, 2011 No.

No. 03-01-10/1-15; letter of the Federal Tax Service of Russia dated June 14, 2011 No. AS-4-2/9386@). Also, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 29, 2010 No. 1411/10, it was determined that the legislation in force at that time did not provide for the obligation of individual entrepreneurs to post cash to the cash desk and to comply with the procedure for storing available funds. In the Regulations on the Procedure for Conducting Cash Operations (which was approved by the Bank of Russia on October 12, 2011 No. 373-P), which was in force after the Procedure for Conducting Cash Operations in the Russian Federation (approved by the letter of the Central Bank dated October 4, 1993 No. 18), it was established that its effect also applied to individuals carrying out entrepreneurial activities without forming a legal entity.

Thus, from January 1, 2012, individual entrepreneurs were required to comply with the procedure for conducting cash transactions, determined by the Regulations on the procedure for conducting cash transactions, including:

– determine the cash balance limit;

– store cash in bank accounts in excess of the established cash balance limit;

– register cash transactions with incoming cash orders and outgoing cash orders;

– ensure availability cash documents and other documents drawn up when conducting cash transactions, within the time limits established by the legislation on archival affairs in the Russian Federation;

- maintain a cash book.

However, the Regulations on the procedure for conducting cash transactions lost force due to the adoption of the Bank of Russia Directive No. 3210-U dated March 11, 2014 “On the procedure for conducting cash transactions by legal entities and the simplified procedure for conducting cash transactions by individual entrepreneurs and small businesses” (hereinafter - Instruction on the procedure for conducting cash transactions for legal entities and individual entrepreneurs).

In accordance with clause 4.1 of the Instructions on the procedure for conducting cash transactions for legal entities and individual entrepreneurs, individual entrepreneurs must conduct cash transactions.

At the same time, in accordance with clause 4.1 and clause 4.6 of the Instructions on the procedure for conducting cash transactions of legal entities and individual entrepreneurs, individual entrepreneurs who, in accordance with the legislation of the Russian Federation on taxes and fees, keep records of income or income and expenses and (or) other objects of taxation or physical indicators, characterizing a certain type of business activity:

a) may not prepare cash documents;

b) may not keep a cash book.

D) legal entities must have an independent balance sheet or budget and must keep accounting records. In contrast, individual entrepreneurs only keep records of income and expenses to calculate taxes that should be paid to the budget. Thus, an individual entrepreneur does not have to keep accounting records, he is obliged to keep records of income and expenses and business transactions in the appropriate accounting book. On January 1, 2013, the new Federal Law of December 6, 2011 No. 402-FZ “On Accounting” (hereinafter referred to as Law No. 402-FZ) came into force. It extends its effect to the following persons (economic entities):

– commercial and non-profit organizations;

– government bodies, organs local government, governing bodies of state extra-budgetary funds and territorial state extra-budgetary funds;

– Central Bank of the Russian Federation;

– individual entrepreneurs, as well as lawyers who have established law offices, notaries and other persons engaged in private practice;

– branches, representative offices and other structural divisions of organizations established in accordance with the legislation of foreign states located on the territory of the Russian Federation, international organizations, their branches and representative offices located on the territory of the Russian Federation, unless otherwise provided by international treaties of the Russian Federation.

An economic entity is obliged to keep accounting records in accordance with Law No. 402-FZ, unless otherwise established by Law No. 402-FZ. However, Law No. 402-FZ establishes that accounting in accordance with Law No. 402FZ may, in particular, not be carried out by an individual entrepreneur or a person engaged in private practice if, in accordance with the legislation of the Russian Federation on taxes and fees, they keep records of income or income and expenses and (or) other objects of taxation in the manner established by the specified legislation. The fact that an individual entrepreneur calculates the tax base at the end of each tax period on the basis of accounting data for income and expenses and business transactions is indicated by clause 2 of Art. 54 of the Tax Code of the Russian Federation. Thus, from January 1, 2013, an individual entrepreneur may also not keep accounting records, since he is obliged to keep records of income and expenses and business transactions in the Accounting Book.

It should be noted that some regulations that relate to the procedure for filling out calculations and other forms of documents contain provisions that they are filled out on the basis of data accounting. At the same time, no distinction is made regarding the procedure for filling out these forms by organizations or individual entrepreneurs. So, for example, in para. 2 clause 1 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory pension insurance to the Pension Fund of the Russian Federation and for compulsory medical insurance to the Federal Compulsory Medical Insurance Fund by payers of insurance premiums making payments and other remuneration to individuals (form RSV-1 PFR) (approved by Resolution of the Board of the Pension Fund of the Russian Federation dated January 16, 2014 No. 2p) it is stated that the basis for filling out the calculation in the RSV-1 PFR form is accounting and personnel records.

Similar provisions are indicated, for example, in clauses 7.10, 7.11, 7.17, 25 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity and compulsory social insurance from accidents at work and occupational diseases, as well as expenses for the payment of insurance coverage (form 4-FSS), approved by Order of the Federal Insurance Fund of the Russian Federation dated February 26, 2015 No. 59.

Also paragraph 1 of Art. 11 of the Federal Law of April 1, 1996 No. 27-FZ “On individual (personalized) accounting in the compulsory pension insurance system” indicates that personalized accounting information about paid insurance premiums, which policyholders submit to the territorial body of the Pension Fund of the Russian Federation, is formed on the basis of data accounting.

E) some articles of the Code of Administrative Offenses of the Russian Federation, which provide for administrative liability measures for offenses in the field of taxes and fees, which apply to organizations, cannot be applied to individual entrepreneurs. Thus, certain measures of administrative liability are not applied to individual entrepreneurs, provided, in particular:

- Art. 15. 3 of the Code of Administrative Offenses of the Russian Federation for violating the deadline for registration with the tax authority;

- Art. 15.4 for violation of the deadline for submitting information about opening and closing an account with a bank or other credit organization;

- Art. 15.5 for violation of deadlines for submitting a tax return;

- Art. 15.6 for failure to provide information necessary for tax control;

- Art. 15.7 for violation of the procedure for opening an account for a taxpayer;

- Art. 15.8 for violation of the deadline for the execution of an order to transfer a tax or fee (contribution);

- Art. 15.9 for failure by the bank to comply with the decision to suspend transactions on the accounts of the taxpayer, fee payer or tax agent;

- Art. 15.11 for gross violation of the rules of accounting and presentation of financial statements.

Individual entrepreneurs cannot be brought to administrative liability established by the above-mentioned norms as officials. This follows from the note to Art. 15.3 Code of Administrative Offenses of the Russian Federation. This rule also applies to cases where an individual entrepreneur, without concluding employment contracts to perform the duties of a manager, chief accountant and others officials, himself exercises the rights and obligations of the named officials (clause 23 of the resolution of the Plenum of the Supreme Court of the Russian Federation of October 24, 2006 No. 18 “On some issues that arise for the courts when applying the Special Part of the Code of the Russian Federation on Administrative Offences”);

i) the restrictions established for the start of application of the simplified tax system by organizations and individual entrepreneurs differ. This information is presented in more detail in paragraph 13.2 of this Book.

people's question.rf

Having analyzed the norms of the current legislation, we can dwell on some differences between the procedure for carrying out business activities in the status of an individual entrepreneur and the procedure for carrying out business activities using any form of commercial organization.

In particular, the following differences can be distinguished:

A) when registering a legal entity, the founders make contributions on their own behalf to the property of the organization. This could be money, inventory or non-current assets. From this moment on, the property of a legal entity is accounted for separately from the property of the founders. Let's assume that the organization suffered losses. Creditors demand repayment of debts. A legal entity can pay off creditors only within the limits of its property. That is, to give away fixed assets, securities, goods, finished products, etc. In this case, the founder can sleep peacefully: it is impossible to take away the personal property of the founders for debts, since the organization is liable for debts only with its own separate property (Article 48 of the Civil Code RF). In order for a citizen to register as an individual entrepreneur, it is not necessary to form an authorized capital. But at the same time, an individual registered as an individual entrepreneur is liable for his obligations (including those assumed as an individual entrepreneur) with all his property (Article 24 of the Civil Code of the Russian Federation).

B) upon registration, an individual entrepreneur cannot, of his choice, rent an office in any district of the city and register with the tax office at his location, unlike a legal entity.

State registration of a legal entity is carried out at the location indicated by the founders in the application for state registration of a permanent executive body, in the absence of such an executive body at the location of another body or person entitled to act on behalf of the legal entity without a power of attorney.

State registration of an individual entrepreneur is carried out at his place of residence (clause 3 of article 8 of Law No. 129-FZ). Place of residence - a residential building, apartment, room, residential premises of a specialized housing stock (service residential premises, residential premises in a dormitory, residential premises of a mobile fund, residential premises in a building of the social service system and others) or other residential premises in which the citizen is constantly or primarily lives as an owner, under a lease (sublease), a lease agreement for specialized residential premises, or on other grounds provided for by the legislation of the Russian Federation, and in which he is registered at the place of residence (paragraph 8 of Article 2 of the Law of the Russian Federation of June 25, 1993 No. 5242-1 "On the right of citizens of the Russian Federation to freedom of movement, choice of place of stay and residence within the Russian Federation").

Therefore, in order to obtain the status of an individual entrepreneur, a citizen must submit the necessary documents to the tax office at the place of residence. But it should be noted that, for example, the registration authority of Moscow is the Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow. Therefore, both individual entrepreneurs and organizations must submit all necessary documents there when registering. If a decision is made on state registration of a legal entity or individual entrepreneur, the registering (tax) authority (Interdistrict Inspectorate of the Federal Tax Service of Russia No. 46 for Moscow) makes a corresponding entry in the database of the Unified State Register of Individual Entrepreneurs (USRIP).

C) individual entrepreneurs may not engage in all types of business activities that organizations can carry out. Types of business activities that can only be carried out by organizations and cannot be carried out by individual entrepreneurs include, for example:

– activities related to the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products in the Russian Federation in accordance with Law No. 171-FZ. Thus, supplies of ethyl alcohol are carried out only by organizations that have licenses for the production, storage and supply of produced ethyl alcohol, including denatured alcohol (clause 4 of article 9 of Law No. 171-FZ). Also, Law No. 171-FZ establishes that the production and circulation of alcoholic (with the exception of retail sales of beer and beer drinks, cider, poire, mead) and alcohol-containing food products is carried out only by organizations (clause 1 of Article 11 of Law No. 171-FZ). Retail sales of alcoholic products (except for beer and beer drinks) are carried out by organizations (clause 1 of Article 16 of Law No. 171-FZ). In addition, Law No. 171-FZ establishes that the production and circulation (except for retail sales) of alcoholic products with an ethyl alcohol content of more than 15 percent of the volume of finished products (except for the production of vodka), state-owned enterprises, as well as other organizations with a paid-up authorized capital (authorized capital) of at least 10 million rubles, have the right to carry out production. The production of vodka has the right to be carried out by state-owned enterprises, as well as other organizations that have a paid-up authorized capital (authorized fund) in the amount of no less than 80 million rubles. (Clause 2.1, Clause 2.2, Article 11 of Law No. 171-FZ);

– types of activities falling within the scope of Law No. 61-FZ. For example, manufacturers of medicines can only be organizations that produce medicines in accordance with the requirements of Law No. 61-FZ;

– activities that arise when pawnshops provide loans to citizens on the security of things belonging to citizens and activities for storing things (Federal Law of July 19, 2007 No. 196-FZ “On Pawnshops” (hereinafter referred to as Law No. 196-FZ)). Thus, a pawnshop can only be a legal entity - a specialized commercial organization, the main activities of which are providing short-term loans to citizens and storing things (Clause 1, Article 2 of Law No. 196-FZ);

– microfinance activities. Thus, microfinance activity is the activity of legal entities that have the status of a microfinance organization, as well as other legal entities that have the right to carry out microfinance activities to provide microloans (microfinance) (clause 1, clause 1, article 2 of the Federal Law of July 2, 2010 No. 151-FZ "On microfinance activities and microfinance organizations");

– activities related to the organization and conduct of gambling on the territory of the Russian Federation. Thus, the organizer of a gambling game can only be a legal entity engaged in organizing and conducting gambling activities (Clause 5, Article 4 of the Federal Law of December 29, 2006 No. 244-FZ “On state regulation of activities for organizing and conducting gambling and on amendments to certain legislative acts of the Russian Federation" (hereinafter referred to as Law No. 244-FZ));

– private detective activity. Thus, an individual cannot register as an individual entrepreneur to carry out private security activities. Private security activities can only be carried out by private security organizations. In accordance with Law No. 2487-1, a private security organization is an organization specifically established to provide security services, registered in accordance with the procedure established by law and licensed to carry out private security activities. A private security guard can be a citizen of the Russian Federation who has reached the age of 18, has undergone professional training to work as a private security guard, has passed a qualification exam, received a private security guard certificate and is working under an employment contract with a security organization (Clause 2 of Article 1.1 of Law No. 2487 -1). Conversely, Law No. 2487-1 does not contain such a concept as a “detective organization” or a “private detective agency.” A private detective can only be a citizen of the Russian Federation, registered as an individual entrepreneur, who has received a license in the prescribed manner to carry out private detective (detective) activities and provides services provided for in Part 2 of Art. 3 of Law No. 2487-1.

D) before the beginning of 2012, there was another difference in the activities of individual entrepreneurs and organizations. We are talking about the procedure for carrying out cash transactions. Previously, the Procedure for conducting cash transactions in the Russian Federation was in force, which was approved by letter of the Central Bank of October 4, 1993 No. 18. It applied to enterprises, associations, organizations and institutions, regardless of organizational and legal forms and scope of activity, and individual entrepreneurs were not mentioned in it . In this regard, it was explained that the previously existing procedure for conducting cash transactions in the Russian Federation did not apply to individual entrepreneurs (letter of the Ministry of Finance of Russia dated March 2, 2011 No.

No. 03-01-10/1-15; letter of the Federal Tax Service of Russia dated June 14, 2011 No. AS-4-2/9386@). Also, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 29, 2010 No. 1411/10, it was determined that the legislation in force at that time did not provide for the obligation of individual entrepreneurs to post cash to the cash desk and to comply with the procedure for storing available funds. In the Regulations on the Procedure for Conducting Cash Operations (which was approved by the Bank of Russia on October 12, 2011 No. 373-P), which was in force after the Procedure for Conducting Cash Operations in the Russian Federation (approved by the letter of the Central Bank dated October 4, 1993 No. 18), it was established that its effect also applied to individuals carrying out entrepreneurial activities without forming a legal entity.

Thus, from January 1, 2012, individual entrepreneurs were required to comply with the procedure for conducting cash transactions, determined by the Regulations on the procedure for conducting cash transactions, including:

– determine the cash balance limit;

– store cash in bank accounts in excess of the established cash balance limit;

– register cash transactions with incoming cash orders and outgoing cash orders;

– ensure the availability of cash documents and other documents drawn up when conducting cash transactions within the time limits established by the legislation on archival affairs in the Russian Federation;

- maintain a cash book.

However, the Regulations on the procedure for conducting cash transactions lost force due to the adoption of the Bank of Russia Directive No. 3210-U dated March 11, 2014 “On the procedure for conducting cash transactions by legal entities and the simplified procedure for conducting cash transactions by individual entrepreneurs and small businesses” (hereinafter - Instruction on the procedure for conducting cash transactions for legal entities and individual entrepreneurs).

In accordance with clause 4.1 of the Instructions on the procedure for conducting cash transactions for legal entities and individual entrepreneurs, individual entrepreneurs must conduct cash transactions.

At the same time, in accordance with clause 4.1 and clause 4.6 of the Instructions on the procedure for conducting cash transactions of legal entities and individual entrepreneurs, individual entrepreneurs who, in accordance with the legislation of the Russian Federation on taxes and fees, keep records of income or income and expenses and (or) other objects of taxation or physical indicators, characterizing a certain type of business activity:

a) may not prepare cash documents;

b) may not keep a cash book.

D) legal entities must have an independent balance sheet or budget and must keep accounting records. In contrast, individual entrepreneurs only keep records of income and expenses to calculate taxes that should be paid to the budget. Thus, an individual entrepreneur does not have to keep accounting records, he is obliged to keep records of income and expenses and business transactions in the appropriate accounting book. On January 1, 2013, the new Federal Law of December 6, 2011 No. 402-FZ “On Accounting” (hereinafter referred to as Law No. 402-FZ) came into force. It extends its effect to the following persons (economic entities):

– commercial and non-profit organizations;

– state bodies, local government bodies, management bodies of state extra-budgetary funds and territorial state extra-budgetary funds;

– Central Bank of the Russian Federation;

– individual entrepreneurs, as well as lawyers who have established law offices, notaries and other persons engaged in private practice;

– branches, representative offices and other structural divisions of organizations established in accordance with the legislation of foreign states located on the territory of the Russian Federation, international organizations, their branches and representative offices located on the territory of the Russian Federation, unless otherwise provided by international treaties of the Russian Federation.

An economic entity is obliged to keep accounting records in accordance with Law No. 402-FZ, unless otherwise established by Law No. 402-FZ. However, Law No. 402-FZ establishes that accounting in accordance with Law No. 402FZ may, in particular, not be carried out by an individual entrepreneur or a person engaged in private practice if, in accordance with the legislation of the Russian Federation on taxes and fees, they keep records of income or income and expenses and (or) other objects of taxation in the manner established by the specified legislation. The fact that an individual entrepreneur calculates the tax base at the end of each tax period on the basis of accounting data for income and expenses and business transactions is indicated by clause 2 of Art. 54 of the Tax Code of the Russian Federation. Thus, from January 1, 2013, an individual entrepreneur may also not keep accounting records, since he is obliged to keep records of income and expenses and business transactions in the Accounting Book.

It should be noted that some regulations that relate to the procedure for filling out calculations and other forms of documents contain provisions that they are filled out on the basis of accounting data. At the same time, no distinction is made regarding the procedure for filling out these forms by organizations or individual entrepreneurs. So, for example, in para. 2 clause 1 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory pension insurance to the Pension Fund of the Russian Federation and for compulsory medical insurance to the Federal Compulsory Medical Insurance Fund by payers of insurance premiums making payments and other remuneration to individuals (form RSV-1 PFR) (approved by Resolution of the Board of the Pension Fund of the Russian Federation dated January 16, 2014 No. 2p) it is stated that the basis for filling out the calculation in the RSV-1 PFR form is accounting and personnel records.

Similar provisions are indicated, for example, in clauses 7.10, 7.11, 7.17, 25 of the Procedure for filling out the calculation form for accrued and paid insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity and for compulsory social insurance against accidents at work and occupational diseases, as well as expenses for the payment of insurance coverage (Form 4-FSS), approved by Order of the FSS of the Russian Federation dated February 26, 2015 No. 59.

Also paragraph 1 of Art. 11 of the Federal Law of April 1, 1996 No. 27-FZ “On individual (personalized) accounting in the compulsory pension insurance system” indicates that personalized accounting information about paid insurance premiums, which policyholders submit to the territorial body of the Pension Fund of the Russian Federation, is formed on the basis of data accounting.

E) some articles of the Code of Administrative Offenses of the Russian Federation, which provide for administrative liability measures for offenses in the field of taxes and fees, which apply to organizations, cannot be applied to individual entrepreneurs. Thus, certain measures of administrative liability are not applied to individual entrepreneurs, provided, in particular:

- Art. 15. 3 of the Code of Administrative Offenses of the Russian Federation for violating the deadline for registration with the tax authority;

- Art. 15.4 for violation of the deadline for submitting information about opening and closing an account with a bank or other credit organization;

- Art. 15.5 for violation of deadlines for submitting a tax return;

- Art. 15.6 for failure to provide information necessary for tax control;

- Art. 15.7 for violation of the procedure for opening an account for a taxpayer;

- Art. 15.8 for violation of the deadline for the execution of an order to transfer a tax or fee (contribution);

- Art. 15.9 for failure by the bank to comply with the decision to suspend transactions on the accounts of the taxpayer, fee payer or tax agent;

- Art. 15.11 for gross violation of the rules of accounting and presentation of financial statements.

Individual entrepreneurs cannot be brought to administrative liability established by the above-mentioned norms as officials. This follows from the note to Art. 15.3 Code of Administrative Offenses of the Russian Federation. This rule also applies to cases where an individual entrepreneur, without concluding employment contracts to perform the duties of a manager, chief accountant and other officials, himself exercises the rights and obligations of these officials (clause 23 of the resolution of the Plenum of the Supreme Court of the Russian Federation of October 24, 2006 No. 18 “On some issues that arise for courts when applying the Special Part of the Code of the Russian Federation on Administrative Offences”);

i) the restrictions established for the start of application of the simplified tax system by organizations and individual entrepreneurs differ. This information is presented in more detail in paragraph 13.2 of this Book.

Legal relations arise in the interaction between various subjects, but in a number of cases the actual nature of the person is fundamental. This is very important for criminal, civil, administrative, labor legislation. The division of subjects of legal relations into individuals and legal entities is of particular importance for the state and society. This gradation makes it possible to treat certain phenomena differently and take into account the interests of various subjects when making decisions.

Individual is a citizen of the Russian Federation, a foreign state, or a stateless person endowed with rights and responsibilities by virtue of the very fact of existence. In other words, this is a person who acts as a subject of legal relations. By virtue of birth, he has legal capacity, and by virtue of age and subjective qualities, he has legal capacity. Both the first and second properties can be limited only by law and only by court decision.

Entity is an organization created and registered in the manner and on the grounds established by law.

Individuals and legal entities. What is the difference between an individual and a legal entity?

It can be commercial or non-commercial, have a certain list of property, and participate in economic activities. A legal entity is liable for its obligations only with the property that is on its balance sheet. It has a certain legal form(CJSC, OJSC, ODO, UP, LLC), which is determined by the Civil Code of Russia.

Comparison

A legal entity can only be brought to administrative and civil liability, while an individual can also be brought to disciplinary and criminal liability. But in each specific case the procedure established by the state must be observed. A natural person is a creation of nature, and it is always represented in singular. Legal is a creation of man, created in his image and likeness, and can include a whole group of people. Subjects of legal relations can come into contact with each other and freely enter into transactions.

However, an individual is liable for his debts with all the property he has, and a legal entity is liable only for what is on his balance sheet. An organization can be subject to bankruptcy or liquidation, but it cannot be sent to prison. Criminal prosecution can be initiated against an individual, and it can be liquidated, but only in the literal sense of the word, and this is punishable by law. As for bankruptcy, this issue is debatable. Economic insolvency proceedings can also be initiated against a person for certain reasons.

Conclusions TheDifference.ru

1. Emergence. A natural person is a creation of nature. An organization is created by a person or a group of persons in accordance with the procedure established by law and completely consciously.
2. Legal capacity. A legal entity acquires a full set of rights and obligations at the time of organization. A person must reach the appropriate age and at the same time be accountable for his actions.
3. Responsibility. A legal entity can be brought to administrative or civil liability, an individual – also to criminal, as well as disciplinary.
4. Termination. A person ceases his activities at the moment of death (with cessation of breathing and loss of heartbeat), an organization - only after liquidation.

According to the civil code of R.F. An individual entrepreneur is an individual who has the right to engage in commercial activities. An entrepreneur is liable for his obligations with all his property.

What form of business is individual entrepreneurship?

Many people cannot understand the organizational and legal affiliation of an individual entrepreneur: is it an individual or a legal entity? The answer to this question is indicated in Art. 23 of the Civil Code of the Russian Federation, according to which any citizen has the right to engage in labor activity as an individual entrepreneur without forming a legal entity.

The concept of a legal entity is interpreted differently: it is a registered organization (LLC) with founders and authorized capital.

Is an individual entrepreneur an individual or a legal entity?

An individual entrepreneur conducts business without one.

It is worth noting that an individual entrepreneur in many cases is vested with the same powers as an LLC. For example, he can also open a current account, enter into contracts and carry out almost the same types of activities, with the exception of some of them.

What is the difference?

Thus, each of the organizational and legal forms has its own pros and cons, and any existing individual entrepreneur can register an LLC by contacting the Federal Tax Service with documents, but he will have to pay taxes and fees for all forms of activity.

Example: A citizen, being the founder of an LLC engaged in the production of building materials, decides to sell clothes through an online store. To do this, he has the right to separately open an individual entrepreneur, but he is obliged to pay taxes to the Federal Tax Service, contributions to the Pension Fund and Compulsory Medical Insurance Fund for both organizations.

In this case, asking the question - an individual entrepreneur is a legal entity. face or ordinary physical face? - it is necessary to proceed from the form of business that the citizen conducts. When resolving legal disputes, filling out documents, submitting reports, he will be a legal entity from an LLC, and an individual from an individual entrepreneur.

Consideration of controversial situations in court

In accordance with the Arbitration Procedure Code of the Russian Federation, the Arbitration Court has the right to accept appeals from organizations and individual entrepreneurs when the following disputes arise:

• Economic: for example, about debts.
• Administrative: when conducting a business that is not legally registered.
• Organizational: bankruptcy of LLC.
• Tax: failure to pay advance payments on time.
• Corporate: when causing losses caused by co-founders, founders and participants to a legal entity.
• Transnational economic: in case of failure to fulfill obligations by a company registered in the territory of the Russian Federation in relation to a foreign citizen, or vice versa.

When making a decision to impose penalties, the court has the right to be guided by data on the personal property of an individual entrepreneur. If a fine is imposed on an LLC, then the arbitration can only take into account the authorized capital of the organization.

Due to the fact that an individual entrepreneur is an individual, or an organization is a legal entity, all conflicts and disputes between them fall within the competence of the Arbitration Court and are resolved only in court.

Addition

Do you have any questions about the nuances of the legal status of an individual entrepreneur or do you need detailed expert advice on another legal issue? Moneymaker Factory recommends using the online service "Lawyer" to receive professional advice from an experienced lawyer. (Receive the first response within 15 minutes after its publication).

Questions and answers on the topic

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One of the questions that naturally arises when studying regulations relating to individual entrepreneurship is the question of the difference between the terms PBOLE and individual entrepreneur. Let's consider both concepts in detail and try to find out whether they are equivalent?

What is PBOYUL?

PBOYUL is an abbreviation of the term “enterprise without forming a legal entity.” PBOYUL indicates the form of ownership and the fact that the enterprise is small.

In this case, the term PBOYUL implies the existence of an entrepreneur operating as an individual (and not a legal entity!). Often this enterprise consists of one person.

What is an IP?

An individual entrepreneur is an individual who has received state registration in the prescribed manner, who carries out entrepreneurial activities without forming a legal entity, the head of peasant (farm) households.

Persons who have not registered their business activities are liable in accordance with current legislation.

Below is an excerpt from clause 2 of Article 11 of the Tax Code of the Russian Federation:

“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, when performing the duties assigned to them by this Code, do not have the right to refer to the fact that they are not individual entrepreneurs.” .

In the laws of the Russian Federation, the terms “PBOLE” and “IP” are equivalent. Previously, the concept of “PBOLE” corresponded to the concept of “private entrepreneur”, but gradually both of these terms were replaced by the term “individual entrepreneur”.

We find confirmation of this in the Civil and Tax Codes.

IN Civil Code RF (Part 1) dated November 30, 1994 N 51-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on October 21, 1994) (as amended on July 21, 2005) there is Article 23 dedicated to entrepreneurial activity:

“A citizen has the right to engage in entrepreneurial activity without forming a legal entity from the moment of state registration as an individual entrepreneur.”

In the Tax Code of the Russian Federation (Part.

What is the difference between a legal entity and an individual in practice?

2) dated 08/05/2000 N 117-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on 07/19/2000) (as amended on 07/21/2007, as amended on 07/22/2005) (with amendments and additions that entered into force on 08/26/2005 ) Article 11. Institutions, concepts and terms used in this Code:

…2. For the purposes of this Code, the following concepts are used: individual entrepreneurs - individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity, as well as private notaries, lawyers who have established law offices.

In addition, from January 1, 2005, the Unified State Register of Individual Entrepreneurs (USRIP) was approved (unified State Register individual entrepreneurs). Data about individual entrepreneurs is entered and registered in the register, and not about personal legal entities. Thus, starting from 2005, the PBOYUL no longer exists.

From all of the above, the following conclusions can be drawn:

1. The concepts of “PBOLE” and “IP” are identical and equivalent (both concepts are found in the laws of the Russian Federation, in the Tax and Civil Codes).
2. “Individual entrepreneur” is a term that replaced the concepts of “PBOLE” and “private entrepreneur”.
3. Today it is possible to use such terminology as:

• IP and PBOYUL;
• IPBOYUL.

All of the above terms are synonyms.