Any citizen of the Russian Federation who has become an adult can open his own business. At the same time, he will also have to calculate and pay taxes and various fees himself. The article talks about what taxes an individual entrepreneur (IP) pays, their diversity and characteristics.

Who is eligible for the status of an individual entrepreneur?

Any Russian citizen who has reached the age of majority can register as an individual entrepreneur. You must register with the tax office, which supervises the address of residence indicated in the passport. However, before doing this, you should definitely find information about what taxes you pay. individual entrepreneur.

The registration procedure is extremely simple: if a citizen comes in person and has a passport with him, then he only needs to write an application according to the established template, provide a copy of the passport and a document that can confirm the fact of paying the state duty. If the documents are submitted by a representative of such a citizen, then a copy of the passport and the signature on the application will have to be notarized.

The tax office is not interested in whether the applicant already has his own business and what his profitability will be. The main thing is that an individual entrepreneur pays taxes regularly and on time.

Taxes paid by an individual entrepreneur as an individual

Taxes for an individual entrepreneur can be divided into several categories.

Taxes he pays as an individual:

What taxes does an individual entrepreneur pay as a merchant?

Taxes for an individual entrepreneur, depending on whether he is engaged in business or not:

• Personal income tax - if he has employees on his staff.
• Single tax according to the simplified tax system - replaces several taxes (income tax, personal income tax, property tax) and is paid if business activity is carried out.
• Unified tax on imputed activities (UTII) - is paid in any case, even if the entrepreneur is completely inactive.
• A patent is acquired for the right to work in a chosen field.
• Unified Agricultural Tax (USAT) – it is applied only by agricultural producers.

In addition to the above taxes, an individual entrepreneur may pay:

• VAT - if he carried out transactions subject to this tax.
• Excise taxes - if he carried out activities related to the circulation of goods subject to excise taxes.

Special taxes

Taxes for an individual entrepreneur in Russia can also be specialized when they are strictly related to the industries in which the individual entrepreneur operates. Among them:

• The already mentioned Unified Agricultural Tax.
• Tax paid on the extraction of mineral resources (MET).
• A fee charged for the use of wildlife (hunting, most often).
• A fee collected for the use of aquatic biological resources (fishing).
• Production of printed products.
• Tax levied on lotteries.

“Simplified” - two types

Most often, citizens, after receiving information about what taxes an individual entrepreneur pays, choose the “simplified” tax system. In this case it is paid single tax, which, as mentioned above, can replace income tax, personal income tax and property tax. Such an entrepreneur does not pay VAT either, but only until he begins to carry out transactions subject to this tax.

An entrepreneur who has chosen the simplified tax system has the right to choose an object. An individual entrepreneur can choose from two tax options:

1. He can withhold tax on the difference that arises at the end of the year between income and expenses. The upper limit of the tax rate is established by law and is 15%, the lower limit is 5%. Within this framework, regions are free to set its value themselves. In practice, such an object is called “income minus expenses.”
2. He can withhold tax on all income he receives during the tax period. The rate here is unchanged for everyone – 6%. The name of the object is “income”.

Single tax on imputed income and patent

In the Tax Code, there are regimes when taxes are paid by an individual entrepreneur in a fixed amount, which is tied to the property that helps the businessman generate income, or to the type of activity. There are two of them - UTII and patent.

UTII assumes that an individual entrepreneur pays imputed tax in any case, even if he did not receive income. Its size is determined by local authorities, and it is strictly tied to the type of activity being carried out and to the conditions in which this activity is carried out. This tax is also unique in that even the complete inaction of an entrepreneur does not exempt him from payment, which must be made quarterly.

A patent is simpler because, having paid once for the right to carry out a certain type of activity, the individual entrepreneur does not draw up reports or make additional payments.

Excise taxes

When listing the taxes of an individual entrepreneur, excise taxes should be mentioned. This type of budget payment is specific and is associated with the implementation of certain types of activities, for example, such as the production of alcoholic beverages and the sale of fuels and lubricants.

It is noteworthy that the payment of excise taxes can be completely combined with the “simplified tax”, since the simplified tax system does not have restrictions for such types of activities. But the patent and UTII are completely excluded: the legislator specifically separated these regimes and activities related to excise taxes into different corners.

When does an entrepreneur switch to a common system?

Taxes of an individual entrepreneur have a unique property: if the amount of a businessman’s income for the year exceeds a certain limit, they change into a different quality and quantity.

So, in order to stay on the “simplified” way, the following conditions must be met:

• The staff must be less than 100 people.
• Annual income must be less than 60 million rubles.
• The residual value of the property should not exceed 100 million rubles.

If the individual entrepreneur fails to stay within these limits, then he is automatically transferred to the general taxation system, when the income tax of individual entrepreneurs becomes diverse and complex. You will have to pay already forgotten VAT, income tax, personal income tax and report differently.

In what cases does an individual entrepreneur pay personal income tax?

Taxes for an individual entrepreneur are inherently related only to the activities of a businessman. But he should not forget about such a tax as personal income tax. Ignoring it may lead to sanctions from tax authorities.

The fact is that the tax service will take into account all transactions for the sale of real estate, vehicles, obtaining shares in companies, etc. separately. And such income will be taxed at a rate of 13%, rather than 6 or 15%. Moreover, since last year, the tax service has been intensively establishing information interaction with other government agencies (for example, the Cadastral Chamber), which submit data on transactions. And if an entrepreneur does not timely file a tax return on his last year’s income, he may face serious penalties.

Insurance premiums

Individual entrepreneur taxes do not include another very important payment that requires significant Money. These are insurance premiums Pension Fund, MHIF and Social Insurance Fund, and all individual entrepreneurs are required to pay them.

Until this year, contributions had to be paid in a fixed amount; currently, a new component has been added to the constant payment, equal to one percent of the excess income of an individual entrepreneur over the amount of 300 thousand rubles. True, it only applies to those using the simplified system. The rest still pay the established amount.

An individual entrepreneur is an individual who conducts commercial activities independently after state registration with the tax service. Let's consider what rights a citizen has in this status, what responsibilities are assigned to him, as well as the advantages and disadvantages of registering an individual entrepreneur.

The concept of “entrepreneurial activity” in the case of individual entrepreneurs, according to the law, involves working to generate profit for oneself personally.

An entrepreneur with this status can organize almost any type of business, excluding those that are only allowed to be implemented by organizations, namely:

• create, supply, repair special equipment for the Armed Forces and weapons;
• engage in security activities;
• produce and sell alcohol;
• be an insurer;
• provide banking services and many others related to finance (pawnshops, non-state pension funds, investment funds);
• produce medicines and chemicals.

There are other types of business that are inaccessible to individual entrepreneurs due to their scale: space developments, nuclear power. Any commercial activity should not be subject to the Criminal Code of the Russian Federation.

If an individual entrepreneur decides to work with goods for children, food, or provide cosmetology or hairdressing services, permits will be required from supervisory services - fire, educational, consumer, environmental. Sometimes permission is not enough, you also need a license. This applies to pharmaceutical, educational, medical activities, transportation various types transport.

Registering an individual entrepreneur

Who can become an individual entrepreneur

According to the Civil Code of the Russian Federation, almost every capable citizen can be an individual entrepreneur upon reaching 18 years of age.

A minor will be able to register an individual entrepreneur with the official guarantee of parents or guardians (from the age of 14) or after marriage (from the age of 16).

In addition to age, there are other restrictions in obtaining the status of an individual entrepreneur. Military, state and municipal employees cannot register their enterprise. For specialists budgetary sphere without special powers (teachers, health workers, psychologists, etc.) are allowed to open individual entrepreneurs.

Who still cannot become an individual entrepreneur:

• citizens deprived of the right to conduct commercial activities by court decision;
• merchants declared bankrupt;
• persons with an open criminal record or under investigation.

Anyone who was forced to close a business due to a court verdict can open a new enterprise only a year after that. It is possible to create an individual entrepreneur after a bankruptcy procedure after five years. It is also not prohibited to register if the criminal record is expunged. But a businessman with a criminal record will not be able to start a business that is related to education, sports, as well as cultural and socially significant activities.

Another important point. If you have already registered an individual entrepreneur, you cannot open another one until you close the first one. If you want to engage in other activities, you can make changes to the Unified State Register (USRIP), indicating new codes from the OKVED list.

Rights and obligations of individual entrepreneurs

An officially registered individual providing services without education falls under the definition of an individual entrepreneur. commercial structure. An individual entrepreneur has rights and responsibilities. These include:

If an individual entrepreneur has changed his data (full name, address, type of activity), he must report this to the tax service, extra-budgetary funds, and other supervisory authorities.

Advantages and disadvantages of individual entrepreneurs

Five pros and five cons of IP

Before opening an individual entrepreneur, you should evaluate all the advantages and disadvantages of this form of business.

The main advantages of IP are:

1. Possibility to change the type of activity without closing the enterprise.
2. Fast and hassle-free registration with a low state fee (800 rubles).
3. Easy reporting, relatively low tax burden.
4. Rare, compared to legal entities, inspections by supervisory authorities, much smaller fines.
5. Receiving benefits (“tax holidays”, reduction of tax rates in some tax regimes), government subsidies.

For beginners to independently swim in the ocean of business, open an individual entrepreneur - the best option. Then you can expand and acquire the status of a legal entity.

The main disadvantages of such entrepreneurship include:

1. Conducting activities without forming a legal entity is at your own peril and risk. An entrepreneur is liable for personal property, even those that are not used in commerce.
2. Mandatory payment of contributions to extra-budgetary funds, regardless of income.
3. The inability to sell or re-register an individual entrepreneur, as well as come up with a beautiful, memorable name. The company is named after the owner's last name.
4. The difficulty of working with large partners - megacorporations consider such partnerships not very prestigious.
5. Certain restrictions on business scaling, income, number of employees, and opportunities for obtaining loans.

If a businessman makes a profit without state registration, he faces penalties, administrative, tax or even criminal liability.

If an entrepreneur has accumulated loans and debts in excess of half a million and is behind on payments for more than three months, he will be declared bankrupt. The enterprise will be closed, and the entrepreneur’s personal property will be put up for auction. In the best case scenario, it will be possible to conclude a settlement agreement with creditors indicating the timing of debt repayment.

To avoid possible fines and other problems, an individual entrepreneur must know the intricacies of tax, pension, and antitrust legislation. Ignorance of them will not exempt you from punitive sanctions in case of non-compliance. Additionally, an entrepreneur should open a bank account and order a seal. This is not necessary, but can greatly facilitate the work of the enterprise.

When starting to discuss individual entrepreneur taxes, it is worth immediately noting that an individual entrepreneur is not a legal entity, but an ordinary individual, but with the right to conduct business activities. Thanks to this difference, taxes paid by individual entrepreneurs can be much lighter and simpler than those of organizations.

We recommend paying taxes and conducting business transactions in non-cash form using a special one.

The tax burden of an individual entrepreneur consists not only of taxes themselves, but also. Unlike taxes, the amount of which can be regulated by choosing the right taxation system, this is a fixed amount. should not, if he is not yet conducting business, but he must pay insurance premiums for himself as long as the entrepreneur’s data is listed in the Unified State Register of Individual Entrepreneurs, i.e. immediately after registration.

Insurance premiums mean contributions to pension and health insurance, as well as to the Social Insurance Fund, if the individual entrepreneur has employees. The amount of insurance premiums does not depend on the chosen tax regime or whether business activity is carried out at all. Next, we tried to talk about taxes and contributions of individual entrepreneurs in clear language and as structured as possible.

Individual entrepreneur insurance premiums 2020

Individual entrepreneur contributions to compulsory pension insurance

Insurance premiums IP for OPS in 2020 is a fixed amount established by the Tax Code of the Russian Federation - 32 448 rubles for the full year. This formula applies when calculating contributions if the individual entrepreneur’s income for 2020 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 above this limit.There is also an upper limit for pension insurance contributions - no more 259 584 ruble

Individual entrepreneurs' contributions to compulsory health insurance

Individual entrepreneurs' insurance premiums for compulsory medical insurance for 2020 are set at 8 426 rubles Please note that compulsory health insurance contributions do not increase with income growth and remain the same amount.

In total, individual entrepreneurs’ contributions in 2020 for themselves with an annual income not exceeding 300 thousand rubles (including in the absence of activity or profit from it) will be 40874 ruble

Individual entrepreneur 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, insurance premiums for employees consist of:

• payments for compulsory pension insurance - 22%;
• payments for compulsory social insurance - 2.9%;
• payments for compulsory health insurance - 5.1%.

Additionally, a contribution is paid to the Social Insurance Fund for compulsory insurance against accidents at work and occupational diseases (from 0.2% to 8.5%).

Benefits for paying insurance premiums

Since 2013, so-called grace periods for non-payment of insurance premiums have been in effect, when the entrepreneur does not conduct business, because... is serving on conscription, is on leave to care for a child under one and a half years old, 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.

In all other cases - extra work for employment or a civil contract, reaching retirement age, lack of activity or profit from it - the entrepreneur must transfer insurance contributions for himself. The tax inspectorate will stop accruing them only after the individual entrepreneur’s data is removed from the state register.

For entrepreneurs registered not from the beginning of the year, insurance premiums are not calculated in full, but taking into account the days that have passed from the date.

Insurance premium calculator

It is necessary to pay insurance premiums in the amount of: - r.

The payment consists of:

Individual entrepreneur 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 office does not allow reporting under special regimes for a number of activities. For those who need help choosing permitted codes, we can offer a free selection of OKVED codes.

To ensure that an individual entrepreneur’s taxes do not become the main item of his expenses, it is worth asking yourself a few questions.

1.Will the expected income be constant or will its size change?

There is a direct connection between the irregularity of income and the choice of tax system, and, based on this, it is worth calculating expected income at least a quarter in advance. In the simplified taxation system, unified agricultural taxation system, NPD and OSN modes tax base, i.e. the amount on which taxes will be calculated arises only when the entrepreneur begins to receive real income. In the UTII and PSN regimes, the basis for such calculations are 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.

If you don’t have regular income at the beginning of your business, we recommend choosing a simplified system, with which you can then switch to UTII or a patent, after first calculating the amount of taxes under 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 needed?

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 simplified tax system and UTII - 100 people. The cost of a patent will also depend on the number of employees, 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 an individual entrepreneur has the opportunity to reduce the tax payable at the expense of paid insurance premiums.

3.What proportion of income will be expenses, and will you be able to document them?

When choosing between the options of the simplified tax system “Income 6%” or the simplified tax system “Income minus expenses 15%”, you need to imagine the size of the expected expenses. In cases where possible expenses will exceed 65% of income, you should choose “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 65% 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?

Types of activities on UTII and PSN are determined by regional laws, and in your specific territory these lists can be either expanded (for PSN) or reduced (for UTII), compared to those specified in the Tax Code of the Russian Federation. You might be having a hard time right now compare all these criteria, but then we will look at each regime in more detail, which will clarify the issue of choosing a taxation system.

And for those who prefer an individual approach, we can offer free consultation a tax specialist who will help you choose a tax regime taking into account the specifics of your business and region.

Individual entrepreneur 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). Entrepreneurs working on a simplified basis are payers of a single tax, which replaces for them the payment of personal income tax on business activities and property tax used in business. 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 .

Not only receipts from the sale of goods and services are recognized as income, i.e. revenue, but also some others, called non-operating. Expenses include not those that the entrepreneur himself considers justified, but a closed list of them, given in Art. 346.16 Tax Code of the Russian Federation. It must be said that this list is quite extensive and for the most part recognizes the real expenses of individual entrepreneurs. In addition to the expenses themselves, the code also specifies the procedure for their recognition; in particular, expenses can only be taken into account after payment. You also need to take a responsible approach to documenting expenses, because... 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 value of income. For the “Income minus expenses” option, the tax base will be the monetary value 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 “Revenue 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 your region has a reduced tax rate and you can confirm your expenses, then individual entrepreneur taxes when applying the simplified tax system “Income minus expenses” can be minimized.

But even taking into account the costs, it is important not to overdo it, because... here the individual entrepreneur has the obligation to pay the minimum tax. What does it mean? If you worked at a loss, i.e. expenses exceed the income received, you will have to pay a minimum tax of 1% of the income received.

The Income option may be a particularly attractive opportunity to reduce the flat tax on insurance 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 payable at all. Individual entrepreneurs with employees can reduce the single tax due to the amounts of insurance premiums paid both for themselves and for their employees, but not more than 50%.

For “Income minus expenses” it is not allowed to reduce the single tax calculated for payment by the amount of insurance premiums, but insurance premiums that individual entrepreneurs pay for themselves and for their 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 simplified restrictions that must be observed to work on this system. For individual entrepreneurs there are few of them - the number of employees should not exceed one hundred people, the simplified tax system is not allowed in the extraction and sale of minerals, except for commonly occurring ones, and in the production of most excisable goods. In addition, an individual entrepreneur may lose the right to simplification after his income for 2020 exceeds 150 million rubles.

If you find the simplified system beneficial and convenient for yourself, then You can prepare an application for transition to the simplified tax system 2020 absolutely free:

Individual entrepreneur taxes on PSN

The patent tax 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 Tax Code of the Russian Federation. This list can be expanded by local authorities, and you need to find out what types of activities you can purchase a patent for in regional laws or at the territorial tax office.

The patent is valid only in the territory of that municipality, where it was issued, so the individual entrepreneur must submit an application to the Federal Tax Service at the place where the patent is valid. For cargo transportation and distribution trade, it is allowed to use one patent when providing services throughout the territory of a constituent entity of the Russian Federation. Restrictions for this regime relate to the number of hired workers - no more than 15, and the loss of the right to use PSN will occur if the annual income exceeds 60 million rubles.

Calculating the annual cost of a patent is quite simple. To do this, you need to know the “potentially possible 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 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 a patent occurs as follows:

• A patent issued for a period of up to six months must be paid in full no later than its expiration date;
• If the validity period of the patent is from six months to a year, then one third of its full cost must be paid no later than 90 days after the start of validity, and two thirds - no later than the expiration date of the patent.

The cost of a patent cannot be reduced by insurance premiums paid.

Individual entrepreneur taxes on UTII

An imputed tax or imputation, just like 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 not allow the use of this regime on their territory (for example, in Moscow). The single tax for the month is calculated using a rather complex formula - DB * FP * K1 * K2 * 15%.

Let's figure out what this set of letters and numbers means:

• DB is per month in rubles (we find it in the table given in Article 346.29 of the Tax Code)
• FP - physical indicator (indicated there)
• K1 is a deflator coefficient, approved annually by the Government of the Russian Federation. In 2020, K1 is 2.005.
• K2 - 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. Individual entrepreneurs 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 yourself, and when an entrepreneur has employees, then you can take into account contributions for yourself and for them, and the tax can be reduced by no more than 50%.In addition to the limitation on the number of workers (no more than one hundred), this mode also has specific restrictions on physical indicators, for example, area trading floor should not exceed 150 sq. m.

Individual entrepreneur 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 Unified agricultural tax - 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 simplified tax system “Income minus expenses”, but the tax rate is 6% of income reduced by the amount of expenses. In addition, since 2019, payers of the Unified Agricultural Tax are required to remit VAT, but with small turnover it is possible to obtain an exemption from it.

Individual entrepreneur taxes on OSNO

And finally, if the individual entrepreneur has not chosen any of the special modes, then he will work on the main tax system. In addition to the rate of 20%, 10% or 0%, you must pay personal income tax (NDFL). The tax base for individual entrepreneurs under this regime will be income from business activities, to which it is allowed to apply so-called professional deductions - documented and economically justified expenses. If expenses cannot be confirmed, then income received can only be reduced by 20%.

The tax rate here will generally be equal to 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 over a consecutive 12 calendar month.

But if the IP 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 he receives is taxed at a rate of 30%, and professional deductions cannot be used.

Insurance premiums for OSNO can be taken into account in full as expenses, both for yourself and for employees. It is worth choosing OSNO if the majority of your customers will be VAT payers, who will benefit from working with you, because they will have the opportunity to take into account input VAT. And then, you need to carefully calculate your estimated income and confirmed expenses.

Individual entrepreneur taxes on NAP

The professional income tax is currently valid in only 23 regions of the Russian Federation. Activities are limited to the provision of services, performance of work and sale of goods self-made. Workers cannot be hired for NAP, and annual income should not exceed 2.4 million rubles. But the tax rate in this regime is very low - only 4% if payment for services comes from individuals. If the NPD payer works with legal entities, the rate is 6%. Insurance premiums for yourself are transferred on a voluntary basis.

Combining tax regimes to reduce individual entrepreneur taxes

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 expected tax burden and work on one type of activity in one mode, and choose a more profitable option for another type. Combining modes is also possible for one activity if you conduct business at different facilities.There are possible options for combining UTII and simplified taxation system, PSN and simplified tax system, UTII and PSN, Unified Agricultural Tax and UTII. You cannot combine the simplified tax system with the unified agricultural tax, the simplified tax system with the OSNO, and also the NPD with all special regimes.

It is difficult to talk about the benefits of combining modes without giving examples, because To do this, you need to calculate the amount of taxes for the imputed regime and patent in a specific region and by type of activity, but you just need to know that such options have the right to exist. Let's finish this discussion general principles choice of tax system, taking into account which individual entrepreneurs’ taxes can be legally 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.

Conducting a private business is carried out by registration individual as an individual entrepreneur. The main difference between this type of business is that there is no need to register a legal entity. At the same time, a private entrepreneur has the same advantages and rights. But taxes and reporting for emergency situations have been simplified.

Private entrepreneurs were businessmen running their own business until 2005. Further, the concept of a state of emergency lost its legal force, and today they are called Individual Entrepreneurs. Any citizen has the right to register his business with the local body of the Federal Tax Service of Russia.

If a person who wants to register as an individual entrepreneur on the territory of the Russian Federation does not have citizenship, he must have a residence permit. Registration of an entrepreneur takes place at the place of residence.

List labor activity practically unlimited. The main thing is that it does not contradict the law.

There are several aspects that IPs cannot deal with:

• weapon;
• drugs;
• explosives;
• alcohol;
• electricity;
• employment of Russian citizens abroad.

Other types of activities are at the complete disposal of the entrepreneur. Some business areas have their own characteristics. They must obtain special permission, a license, or join special organizations. For example, to carry out educational activities.

When deciding to register your own business and participate in market relations, you should not think about what is better than a private enterprise or individual entrepreneur. These are just different terms of the same concept. General terms registration, taxation and business management are the same for all entrepreneurs.

Almost anyone can open their own business if they adhere to the rules of registration and business management.

First of all, pay attention to the list of required documents:

1. Passport and its copy.
2. TIN certificate and copy.
3. Application for registration.
4. Receipt for payment of state duty.

If a complete package of documents is provided, the process of individual entrepreneur registration begins.

Persons who have the right to conduct business activities on the territory of the Russian Federation include:

• citizens of the Russian Federation over 18 years of age;
• citizens of the Russian Federation over 16 years of age, subject to obtaining permission from official representatives;
• citizens of foreign countries with a residence permit.

After completing the entire procedure, the entrepreneur receives a OGRNIP certificate and an extract from the Unified State Register of Individual Entrepreneurs. Registration of an individual entrepreneur is carried out without forming a legal entity.

Private entrepreneur and individual entrepreneur: there are no differences between them. Any citizen and foreigner with a residence permit can register their own business and conduct commercial activities, receiving income and contributing to the development of small businesses in Russia.

Advantages of IP

The Russian government is doing everything possible to promote the development of small businesses. The procedure for submitting documents has become simpler since 2011, and the same applies to terminating business activities.

The main advantages of IP include:

• simplification of registration;
• simplifying the business liquidation process;
• the ability to manage your profits;
• stamp is placed only on documents strict reporting and in accordance with the requirements of regulatory legal acts;
• exemption from taxes on commercial property;
• simplified household accounting;
• simplification of submission of external reports;
• the entrepreneur makes all decisions himself;
• you can open divisions without registering with the Federal Tax Service;
• revenue is not taxed;
• the ability to conduct business with a non-cash account;
• When paying taxes under the UTII system, an entrepreneur has the right not to report his income.

Representatives of small businesses find themselves in a very advantageous position. State of emergency and individual entrepreneur - what is the difference - in this case it does not matter. Registration of business activities gives advantages to entrepreneurs and greatly facilitates the conduct commercial activities.

Along with the advantages, running a private business has its own characteristics.

These nuances can have an impact and become an unpleasant surprise for a future businessman:

• The main difference between an individual entrepreneur and legal entities is that responsibility for financial obligations he carries his personal property;
• restrictions in choosing a field of activity;
• prohibition of obtaining licenses for certain types of business;
• there are a number of companies and enterprises that refuse to cooperate with individual entrepreneurs due to the need to pay VAT (provided that the individual entrepreneur is on the simplified tax system);
• the possibility of partnership is excluded;
• the business is managed personally by the entrepreneur without the possibility of transferring responsibility to a third party;
• even if no business was conducted during the year, contributions are still deducted based on the minimum wage;
• accounting activities become more complicated when doing business on the general taxation system.

Familiarize yourself with all the features of running a private business before registering your business. The choice of tax system, type of activity, organization of working hours and a number of other details need to be considered and analyzed.

Having a clear understanding of all the advantages and disadvantages of entrepreneurship, you can competently organize your business, avoid difficulties and earn more profit.

In 2019, a new status appeared for people making profit from the sale of goods and services. Now such persons are called “Self-employed citizens”. The main condition here is to conduct regular commercial activities. Any type of income received, except for renting personal housing, must be registered with the tax service.

Consequences of running a business without appropriate registration with the accounting authorities:

1. A fine of up to 300 thousand rubles for conducting business illegally.
2. Imprisonment for up to 6 months.
3. For particularly large amounts of income, the fine increases to 500 thousand rubles.
4. The term of imprisonment in the case of receipt of income over 1.5 million rubles is up to 5 years.

Despite the fact that it is impossible to discover how an individual entrepreneur differs from a private entrepreneur, in any case, entrepreneurial activity must be formalized in accordance with legal system RF. This will help avoid problems with the tax service.

Timely registration, receipt of necessary business licenses and payment of taxes guarantees stable income and opportunities for professional growth.

Comparison of private entrepreneurs and individual entrepreneurs

Today, at the legislative level, any individual who conducts commercial activities is called an individual entrepreneur. But you can call him a private entrepreneur, a businessman, or a merchant. These concepts are also true and do not contradict reality. The only difference is that state of emergency was the official name of entrepreneurs in Russia until 2005. Individual entrepreneurs, accordingly, began to be called entrepreneurs after 2005.

In a number of cases, a citizen does not have the right to be called either an individual entrepreneur or a state of emergency.

Here are some reasons:

• a minor under the age of 18 cannot register as an individual entrepreneur. Exclusion of persons over 16 years of age, with permission from official representatives;
• You cannot register with the Federal Tax Service again if you are already registered there as an individual entrepreneur;
• it is prohibited to conduct business activities if the citizen is deprived of such a right based on a court decision;
• if an individual was declared bankrupt less than a year ago;
• as well as persons who had a criminal record under certain articles of the Criminal Code.

In any case, registration with the federal tax service and registration of commercial activities by an individual gives him the status of an individual entrepreneur.

Who is a sole proprietor? In economically successful countries, entrepreneurship is very developed, which not only provides regular income to the country's budget, but also allows the population to independently extract the income that they consider worthy for themselves. Individual entrepreneurship in Russia has not yet exhausted its opportunities for further growth; less than 4 million Russians are engaged in it.

There is a common misconception that a sole proprietor is a legal entity, while an individual can do business as a private entrepreneur. This is a misconception, the reason for which is that such “experts” simply did not bother to devote a little time to familiarize themselves with changes in the current legislation.

The definition of this term is as follows. By individual entrepreneur (IP), the legislator means an individual who has registered an enterprise in in the prescribed manner and which deals entrepreneurial activity, however, it does not form a legal entity. Previously, before the amendments were made, the law used other designations for this concept, which directly indicated that an individual entrepreneur is an individual.

Therefore, it is just as incorrect to consider an individual entrepreneur as a legal entity as it is to consider a state of emergency as such. Any capable citizen can become an individual entrepreneur. As soon as he registers in the prescribed manner, he receives a certain status, which allows him to engage in entrepreneurial activity.

They mistakenly believe that to obtain this status you need at least an office, but it is better to have some kind of enterprise, warehouse, kiosk. All this is not required from an individual who has expressed a desire to do business. He may not have any means of production or premises, but at the same time have the status of an individual entrepreneur. This is precisely the status that can be registered at the place of residence.

Operating in Russia Civil Code(Civil Code of the Russian Federation) allows citizens to engage in business without forming legal entities. An important point to remember! Registration of an individual entrepreneur can only be carried out at the citizen’s place of registration, even if he carries out his activities in another city, he has an office and means of production there. For example, if a person is engaged in business in Moscow, but he is registered in Kazan, he needs to register in Kazan, and not in the capital’s government agencies.

Signs of IP

What are the main signs individual entrepreneurship? Individual entrepreneurial activity has the following characteristics:

• it can be any citizen of Russia, a foreigner or a stateless person;
• the activity is of an entrepreneurial nature;
• Availability state registration.

As for age requirements, individual entrepreneurship is available to citizens from the moment they reach the age of majority, that is, from 18 years of age. But the legislator admits that full legal capacity may occur earlier if a person got married before reaching 18 years of age.

In addition, if a person wants to start an individual business before this age, in this case the legislator gives him the right to register an individual entrepreneur from the age of 16. After registration, he is considered an adult. Foreign citizens who stay on the territory of the Russian Federation on the basis of a visa can be registered as individual entrepreneurs, but only for the period while the visa is valid.

The features of individual entrepreneurship are that it should be characterized by:

• systematic;
• legality;
• riskiness;
• its goal is to make a profit;
• carried out at your own risk.

The legislator did not establish any clear criteria for systematicity. The tax service believes that if a business activity was carried out twice, it can be classified as systematic. It is impossible to register an individual entrepreneur if its activities are initially supposed to be illegal, for example, the distribution of pornographic materials.

Sole proprietorship does not have to be profitable. That is, it is implied that this is the goal, but, like any other, it may not be achieved. This is not a reason for forced closure.

The risk lies in the fact that a person carries out activities on own fear and risk, is liable to the state and partners with its property. Important point! If an individual entrepreneur goes bankrupt or becomes bankrupt, not all of his property is confiscated. If he has the only apartment in which he lives with his family, it is not subject to confiscation, as are his belongings, as well as means of production. The list of such property is established by civil procedural legislation.

It is important to know! Two individual entrepreneurs have the right to create any type of business partnerships and societies. This allows you to scale successful business, the development and form of which forces a businessman to go beyond the scope of individual entrepreneurs.

What is regulated and are there any restrictions?

Not only individual entrepreneurial activity,

but the registration procedure is carried out in accordance with the provisions specified in Federal Law RF “On state registration of legal entities and individual entrepreneurs” No. 129-FZ, as well as in accordance with the norms of the Civil Code of the Russian Federation. In addition, this activity is regulated by the legal acts of the constituent entities of the federation. The Russian government periodically issues decrees that relate to the activities of individual entrepreneurs.

Despite the fact that every citizen living in Russia can become an individual entrepreneur, there are some restrictions that apply not only to incapacitated persons. It is prohibited for state and municipal employees who are authorized to engage in entrepreneurial activities government functions. Among them are the following categories:

• employees of the Ministry of Internal Affairs;
• FSB officers;
• tax officers;
• military personnel;
• officials;
• school directors;
• university rectors;
• FSS and Pension Fund employees.

But state employees who are not vested with such powers, who are not called upon to perform the functions of the state, can conduct business as an individual entrepreneur. This applies to the following categories:

• doctors;
• teachers;
• university teachers.

The legislator has special regard for persons who have been convicted of criminal offenses. This does not mean that these persons cannot become individual entrepreneurs if their criminal record has not been expunged. The law allows them to engage in business unless there is a court prohibition against it. But for certain types of convictions, they may be prohibited from engaging in a business that involves working with minors.

For some types of activities, it is not enough to register as an individual entrepreneur. After this, you still need to obtain a license. This applies to the pharmacy business or if transportation of citizens and goods is provided. For those who plan to engage in private investigation, they will also have to obtain a license for this type of activity.

The difference and features of an individual entrepreneur from a legal entity is that there are also types of activities that an individual entrepreneur cannot engage in. This applies to the development and sale of weapons, ammunition, drug trafficking or poisons. An individual entrepreneur will not be able to engage in the production or sale of alcoholic beverages.

That is why those who plan to open a restaurant or bar that provides for the sale of alcoholic beverages should immediately think about registering the enterprise in the form of a legal entity. Those who want to provide banking services, produce medicines, etc. will have to do the same.

What's most important?

Often, beginning businessmen perceive the fact of registering as an individual entrepreneur as something outstanding. And only later, when he has more than one open and closed enterprise behind him, the fact of registration is perceived as ordinary.

The fact is that the registration certificate is only a tool that needs to be used correctly. The mistake of many is that they do not highlight the main thing in a businessman’s activity – sales. Their presence or absence can either make a project successful or bankrupt it.

Having decided to start a project, it is strongly recommended to gain experience in this area, for which you will have to get a job in an existing company. It's best to go to the sales department. Finding someone who will do the work itself, make a product or provide a service is not difficult. It is much more difficult to sell this product or service. Having learned how to promote a product or service well, you can think about own business– you have already mastered the main thing in it!

Important point! It is mistakenly believed that you need to start your own business by introducing a product or service that has no analogues. Their introduction to the market requires the creation of demand, which requires multimillion-dollar investments. Therefore, it is necessary to start projects in areas that are already developing, but which are not oversaturated.

An individual entrepreneur may be declared bankrupt.

He can do this on his own if he voluntarily declares his inability to further satisfy the demands of creditors, or he can be recognized by an appropriate decision of the arbitration court.

The statement of claim is filed in court by both the debtor and the creditor. Such an application may be submitted by a tax authority or other authorized person with requirements for mandatory payments. As soon as the court, by its decision, declares the individual entrepreneur bankrupt, its registration becomes invalid and the issued licenses are cancelled.