Civil law status of an individual entrepreneur - features of doing business. The concept and legal status of an individual entrepreneur Features of the legal status of an individual entrepreneur

Legal status individual entrepreneur in Russia is regulated by a number of legal acts, including the norms of the Constitution and Federal legislation. The legal status is the civil legal status of an individual entrepreneur, distinguishing him from other active subjects in the Russian economy.

Its foundations are the responsibility, duties and rights of individual entrepreneurs, enshrined in the regulatory provisions of the Civil Code of the Russian Federation (CC RF), the law "On registration legal entities and individual entrepreneurs", of the Tax Code (TC RF). Features of the status of an entrepreneur are also enshrined in other legislative acts.

Legal personality of an individual entrepreneur

The possibility of exercising the legal rights and obligations of an individual entrepreneur is revealed through the concepts of legal capacity and delictual capacity. Currently, there is no legal definition of the legal and legal capacity of an individual entrepreneur: art. 17 and 21 of the Civil Code of the Russian Federation disclose this concept only in relation to citizens, and Art. 48 - only legal entities.

The Russian legal doctrine has long eliminated this gap in rule-making. According to Art. 23 of the Civil Code of the Russian Federation, each citizen can engage in private entrepreneurship without registering his own company (LE), but with registration as an individual entrepreneur. At the same time, most of the legislative norms that establish the peculiarities of the status of merchant organizations have been adapted to IP. It turns out that entrepreneurial legal and legal capacity are categories that coincide at the moment of occurrence: the ability to bear obligations and have rights and a real opportunity to implement them by their actions arise for any person from the moment he goes through the registration procedure and becomes an individual entrepreneur (by analogy with YuL). The same applies to the possibility of individual entrepreneurs to be responsible for their illegal actions (delictual capacity).

All these legal definitions, combined together, is the civil legal personality of an individual entrepreneur. In civil law, such a concept, due to its capacity and convenience, is most often used in relation to any kind of entrepreneurs.

Features of the legal status of an individual entrepreneur without registration

An interesting point is that any person can be recognized as having the legal status of an individual entrepreneur even in the absence of state registration. People who constantly provide services and perform work on transactions with the population often do this for the purpose of making a regular profit.

They are required by law to register. But in order to evade taxes, avoid increased liability (compared to the liability of individuals) or out of banal ignorance, such irresponsible citizens do not enter the appropriate state register. Then, in the event of improper, incomplete performance of obligations to counterparties and the emergence of litigation on this basis, the court has the right to apply the same rules to the agreement of the parties as if the executor on it was an individual entrepreneur.

Certain exceptions to common ground concerning legal status individual entrepreneurs are provided to persons who are engaged in commerce in the agricultural sector. They may not be registered as individual entrepreneurs, but there must be an agreement between such citizens on the creation of a farm (peasant) economy. Such a farm will not be considered a legal entity. There is only one additional condition- Only an individual entrepreneur is capable of heading a farmer's association. For contracts concluded peasant farms, transaction rules always apply commercial organization with legal exceptions.

Registration of a citizen as an individual entrepreneur

The freedom of entrepreneurship is guaranteed by Article 34 of the Russian Constitution.

Any citizen can use his skills, knowledge and his property to actively participate in the economic turnover. At the same time, he must act in good faith, observe the prohibitions on employment certain types business, as well as acquire the appropriate legal status of an entrepreneur.

General provisions of the Civil Code of the Russian Federation provide sole ground for doing business by citizens without forming a legal entity - state registration.

This process and the bodies to which you need to contact those who want to do own business, are described in detail in federal law"On state registration of legal entities and individual entrepreneurs" N 129-FZ.

The registration process is the entry by the authorized body of information about a citizen, an individual entrepreneur, into the relevant federal register - Unified State Register IP (EGRIP). This register contains a list of all entrepreneurs in Russia indicating their last name, first name and patronymic, gender, date and place of birth, place of residence, individual taxpayer number (TIN) and types of activity (according to OKVED), some other information that individualizes IP.

The only body authorized to register entrepreneurs in the Russian Federation is the Federal Tax Service(FTS of the Russian Federation), which is under the jurisdiction of the Ministry of Finance of the Russian Federation. A citizen who is going to register his entrepreneurial status must apply to the inspectorate of the Federal Tax Service of the Russian Federation at his place of residence and have the following documents with him:

An application signed by the applicant, executed in accordance with the Order of the Federal Tax Service of the Russian Federation dated January 25, 2012, N ММВ-7-6 / [email protected]
A copy of the identity document of a citizen and which is his main document (copy of a passport or other document if the person is a foreigner or stateless person).
A copy or original of a document that contains confirmation of the address of one's place of residence (if one has a passport of a citizen of the Russian Federation, a copy of the corresponding page).
If the person is a minor, then the written consent of the legal representatives (parents, guardians, etc.) of such a person to engage in entrepreneurship, certified by a notary; or a copy of the marriage certificate (to confirm emancipation); or a copy of the decision of the state body or court, which establishes the full legal capacity of the minor.
A copy of the document confirming the payment of the state fee (according to Article 333.33 of the Tax Code of the Russian Federation, the fee for registration as an individual entrepreneur is 800 rubles; it can be paid through branches of most banks, ATMs, payment offices during inspections of the Federal Tax Service of the Russian Federation).
A certificate confirming the presence or absence of a criminal record, the fact of criminal prosecution, or containing information about rehabilitation in the event that the future activities of the individual entrepreneur will be related to education, upbringing, medical care for minors, children's and youth sports, etc.
If you want to work in the above areas related to the development of the child, you must have a positive decision of the commission on minors in the relevant subject of the Russian Federation.

During the registration process, the legal status of subjects entrepreneurial activity not yet framed. Only the moment of final registration gives rise to the right to do business, to conduct business on behalf of the individual entrepreneur.

Documents are usually transferred directly to the inspectorate of the Federal Tax Service of the Russian Federation. But there are more convenient ways. Documents can be mailed by registered mail, transfer through the multifunctional provision center public services, send to in electronic format with mandatory certification electronic signature through the Internet. If all papers are transferred through a representative, it is necessary to certify all the signatures of the applicant on each document in the notaries.

Registration deadlines and final decision

The legislator has provided employees of the inspections of the Federal Tax Service of the Russian Federation with a sufficiently short time to carry out the registration procedure and verify all submitted documents. According to Article 8 of the Law "On Registration of Legal Entities and Individual Entrepreneurs", registration must take place within 5 days (working days) from the date the applicant submits all required documents.

Based on the results of the study of the submitted papers, the authorized tax inspector forms a decision on registration or refusal to register an individual as an individual entrepreneur. If everything is in order with the documents, then the inspector draws up his decision and enters information about the new individual entrepreneur into the USRIP. During the business day following the decision, the newly-minted businessman is notified of a positive decision with a copy of it attached, confirming that the information is in the register. From this moment on, a citizen becomes an individual entrepreneur and can safely carry out his economic activity in a new capacity for himself.

The right of a citizen to appeal against the decision of the Federal Tax Service of the Russian Federation

One of the most important civil rights is the right to be protected both in court and in out of court. The decision to refuse registration as an individual entrepreneur is usually first appealed to a higher tax authority - the tax office of a city or a constituent entity of the Russian Federation, but the legislator also allows an appeal immediately to the court. A complaint can be filed before the expiration of 3 months from the date of receipt of a decision to refuse state registration or from the date of receipt of information in a different format about the violation of one's rights. A complaint against a decision of a higher inspection is filed within the same time limits, only from the moment the decision on the previous complaint is received. The deadline for filing a complaint if it is missed, if any good reason restored by the higher tax authority.

The complaint is filed in the same manner as the documents for registration. Its mandatory details are:

Full name of the potential individual entrepreneur, his place of residence;
information regarding the refusal to grant IP status;
full name tax office which has taken the contested decision;
claims and claims of the complainant.

In addition, your arguments can be supported by any necessary written evidence: documents, certificates.

The term for consideration of the complaint should not exceed 15 working days. It is extended only if necessary by the head of the tax office within 10 working days. Based on the results of consideration of the complaint, the higher inspectorate of the Federal Tax Service of the Russian Federation can either satisfy the applicant's requirements and cancel the initial decision, or leave the complaint unsatisfied. The final decision must be communicated to the applicant within the next working day after its issuance.

If a decision is made in favor of a potential individual entrepreneur, the body that made the initial decision to refuse registration must complete all necessary registration actions within 5 days according to the initial documents and enter information about the new entrepreneur into the EGRIP.

If the decision on the complaint is not made in favor of the person, then you should forget about the further legally prescribed appeal to higher tax authorities and you need to apply to the court. In practice, higher inspectorates always take the side of their lower colleagues, and only competent work in court hearings, it can tip the scales in favor of persons wishing to acquire the legal status of individual entrepreneurs.

The status of an individual entrepreneur is determined at the legislative level in accordance with the form of management. He gives the individual entrepreneur rights and obligations that must be adhered to without fail. Every businessman should know about this parameter.

Status determination

Starting economic activity, subjects inevitably face a choice: to give preference to one or another organizational and legal form of business processes. To do right choice and take the most advantageous position in the way of doing business, it is necessary to carefully consider all the positive and negative aspects that are characteristic of the existing organizational and legal forms.

The civil law status of an individual entrepreneur is defined in two ways, since the considered form of business operations includes signs belonging to different persons. It's about both on individuals and on business entities of a legal entity.

There are a number of documents that determine the position of the IP. In accordance with the Civil Code of the Russian Federation, it is possible to identify a list of entities related to individuals and engaged in entrepreneurial activities. Individual entrepreneurs include citizens who carry out entrepreneurial activities, while creating a legal entity is not required. After reviewing the Civil Code of the Russian Federation, it becomes clear that in legislative order Individual entrepreneurs are not included in the composition of legal entities. However, it is wrong to rank them as individuals.

The most correct option in determining the legal status of an individual entrepreneur is to classify him as a separate group of individuals who are not classified as legal entities. But in connection with the management economic activity for commercial purposes, they are endowed with specific powers that apply to the sphere of entrepreneurship. Outside this area, individual entrepreneurs are ordinary citizens of the state with the status of an individual.

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Specific Features

The legal status of an individual entrepreneur, from a legal point of view, is determined by the peculiarities of origin. An individual entrepreneur is recognized as a participant in economic processes, as he carries out activities of an entrepreneurial nature. The formation of a business entity as such is not carried out.

This duality determines the rights that accompany obtaining IP status, especially the right to receive commercial benefits.

Individual entrepreneurs can only engage in a limited list of activities. It is determined by the relevant state authorities and excludes, for example, the possibility of selling alcoholic beverages or selling services related to security activities.

Therefore, before the IP registration procedure, each business entity needs to carefully read the list of prohibited types of manipulations that imply the need to open a company with limited liability. There are restrictions related to the tax policy pursued by the state government, therefore, a thorough check of the actual activity of the subject is carried out.

Obtaining the status of an individual entrepreneur does not mean that the property belonging to the subject will be divided into categories (participating in entrepreneurship and not). In this situation, both pluses and minuses can be identified. For example, it is possible to use a previously acquired item of property for the purpose of making a profit in the course of a commercial activity.

However, the negative side is that all property may be subject to seizure if the individual entrepreneur has unfulfilled obligations to creditors.

In this case, the property of the IP will be transferred as a payment of debt, while no records are kept of property that was or was not involved in the process of activity.

Among the obligations of an individual entrepreneur, they highlight the need to make timely payment of tax payments, the amount of which is calculated according to the form. It should be borne in mind that mandatory payments include amounts sent to Pension Fund. In many regions of Russia, individual entrepreneurs have a special position, which is reinforced by the support of representatives of local governments. This manifests itself in the form of benefits provided for by law. Such measures are carried out by the state for the development of small businesses.

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Positive sides

After the documents confirming the status of an individual entrepreneur are drawn up, the entrepreneur has special rights and obligations. The most important right is that an individual entrepreneur has the opportunity to carry out activities for the purpose of making a profit.

An individual entrepreneur with a civil law status is exempted from the obligation to make tax payments (they are charged on the amount of income received by individuals). To register a legal status, a number of necessary documents are collected, their number is minimal. The costs associated with the relevant registration are somewhat less than for other forms of law.

For individual entrepreneurs, fines are provided for violation of the provisions defined at the legislative level. However, their size is significantly less than the amount of fines that legal entities have to pay. When creating an IP, each business entity needs to issue an account with which non-cash transactions will be carried out.

Legal entities have the opportunity to dispose of profits at their discretion. Unlike individual entrepreneurs, persons registered in the status of a limited liability company must wait for the distribution of profits in order to take advantage of the results of the activity.

The advantage of the status of an individual entrepreneur is that he has the right to use his property in a simplified manner. An individual acting as an entrepreneur and his family have the right to use all property without restrictions, even if it is involved in the implementation of commercial activities. This provision is valid until the loss of the status of an individual entrepreneur occurs.

Individual entrepreneurs have the ability to carry out combined activities related to entrepreneurship, other types of non-commercial activities.

Competent conduct of business is inextricably linked with an understanding of the norms of the law. Without this, it is impossible to build a successfully developing company. The choice of legal form depends on the goals of the business. Correct decision for initial stage will contribute successful implementation ideas and intentions. There are many differences between the legal statuses of an individual entrepreneur and a legal entity (LE). common moments, but there are enough differences.

To understand the features of the submitted forms, it is necessary to analyze the articles of the law that indicate the procedure and conditions for the implementation of activities. Knowing the basics of regulation and the requirements, it will not be difficult to choose the appropriate option for implementing a business plan. We propose to understand what constitutes the legal status of an individual entrepreneur, as well as its features.

Individual entrepreneur: status features

Individuals who carry out entrepreneurial activities without registering a legal entity, but registered in accordance with the requirements of the law, are called individual entrepreneurs or individual entrepreneurs. They also include the heads of the peasant farms. The term "individual entrepreneur" was introduced in 1995 (Civil Code, Article 23). The use of the combination "private entrepreneur" is considered incorrect.

Due to the peculiarities of the term “individual entrepreneur”, the legal status of an individual entrepreneur is dual in nature. It is simultaneously subject to the norms of legislation for both individuals and business entities. Thus, a citizen gets the opportunity to conduct business without creating a new economic entity (law dated 08.08.2001 under number 29-FZ). Compared to the rights of a legal entity, they are significantly inferior to him, but against the background of other individuals, they are more extensive.

The civil law status of an individual entrepreneur is defined as the legal status of an individual entrepreneur in the field of entrepreneurial (civil law) relations, which characterizes the principles, guarantees, measures of responsibility and determines their place in the system of civil law relations, taking into account the specifics and characteristics of their activities.

The conduct of any activity not prohibited by law is a characteristic hallmark a citizen who has acquired the status of an individual entrepreneur. Exclusive rights impose certain obligations. With the adoption of the status of an individual entrepreneur, it becomes necessary to pay taxes, mandatory contributions and fees to extra-budgetary funds. But in many cases, the entrepreneur is guided by legislative acts for individuals. So, for example, when using existing vehicles for commercial purposes, he pays taxes to an individual, observing the procedure established for this category.

Defending the rights and interests of individual entrepreneurs in court and features of legal regulation

The scheme of judicial protection of the interests of an individual entrepreneur depends on the basis on which he acted in a given situation. For an individual entrepreneur who is a business entity, it will be carried out in arbitration courts. In the case when the legal relations of an individual entrepreneur are considered from the point of view of a citizen, then the court of general jurisdiction will become the venue for the proceedings. In this regard, it is very important to determine on the basis of what and in what capacity the entrepreneur acts in a particular situation.

Conducting industrial or commercial activities without proper registration is prohibited by law.

Normative legal acts regulating in detail the civil-legal status of individual entrepreneurs are currently absent. Numerous attempts to address this omission have been unsuccessful. Acceptance on federal level a single law would to some extent simplify the interaction between entrepreneurs and their counterparties, as well as government agencies. Existing locally legislative acts, primarily aimed at the development and support of small businesses. They emphasize the special status of citizens - individual entrepreneurs, but in order to find out the procedure and working conditions, it is necessary to rely on a large number of normative documents.

You can learn about the main methods of protection in the implementation of commercial activities of an individual entrepreneur by reading this article:

Positive aspects of IP status

Individual entrepreneurs have a number of advantages. All positive (and negative) points are easier to consider in terms of comparison with two categories:

with ordinary citizens
with other organizational and legal forms.

Citizens who are not registered as individual entrepreneurs are significantly limited in their rights. For them, it is forbidden to carry out commercial operations that involve making a profit on a regular basis. Violation of this requirement may lead to liability, the nature of which - administrative or criminal - will depend on the details of the situation. Such restrictions do not apply to individual entrepreneurs. Even in terms of taxation, IP has slight advantage- he does not have to pay personal income tax, which is mandatory for all citizens (payments are made from most of the income received).

Comparing individual entrepreneurs and legal entities, one can note the minimum level of expenses during registration. In addition, for individual entrepreneurs, the volume of necessary documents is much less, there is no obligation to pay authorized capital and registration of a legal address. An entrepreneur can safely conduct business without a seal and a current account. The tax legislation for individual entrepreneurs enshrined large quantity tax regimes, while the administrative one provides for penalties for much smaller amounts and short sentences.

An individual entrepreneur has the right to independently decide on what needs to spend the income received in the course of activities. The property of an individual entrepreneur is another significant advantage status. An individual entrepreneur can use it for both personal and commercial purposes without restrictions. The family members of the entrepreneur also have a similar right.

For individual entrepreneurs, the possibilities of combining this status with the performance of other types of activities are open. So, for example, he can work for hire (except for some positions that are subject to the restriction). An entrepreneur has the right to act as a founder of a legal entity, as well as a participant or founder of a public organization. As an individual, he can enter into legal relations without restrictions. Thus, the range of possible occupations does not end with commercial activities.

Negative side of the status

Features of the legal status of an individual entrepreneur suggest the presence of not only many advantages, but also a sufficient number of disadvantages. First of all, it is worth noting the mandatory tax deductions and payments to off-budget funds. An individual entrepreneur must submit reports established by law. If the entrepreneur has employees, he performs the functions of a tax agent - transfers mandatory payments from the income of employees (individuals).

IP is subject to a number of restrictions. Certain types are closed to them. public services, including civil (Article 17, subparagraph three of paragraph 1 of the law of July 27, 2004 under the number 79-FZ). A restriction is placed on the activities carried out. Some types are not available to individual entrepreneurs (among them the production and sale of alcohol, medicines; activities related to the military sphere, etc.). Sometimes legal entities refuse to cooperate with individual entrepreneurs. One of the reasons is the difficulty with VAT (payment and refund).

An important disadvantage of IP status is the (risk) of all available property. In the event of claims arising in the course of activities, IP may be charged cash(including personal property, subject to restrictions established by law) to pay off debts to government agencies or business partners in full. This fact leads to the fact that an improperly organized business will directly affect the well-being of the entrepreneur. But even for legal entities, there is a possibility of incurring significant material losses of personal property. They bear subsidiary liability (Article 399 Civil Code).

Sole proprietorship and marriage contract

It is necessary to pay attention to one more point, which concerns the property and income of the entrepreneur. If the individual entrepreneur is in a civil marriage (officially registered), then everything that is received in the course of activity is subject to division upon divorce. Property, the use of which was carried out only for commercial purposes, is also distributed between the spouses in equal shares. This rule applies even if the status of an entrepreneur was acquired before marriage.

A kind of “insurance” can help in this situation. To prevent unwanted division, it is necessary to conclude a prenuptial agreement, which indicates the current status and procedure for divorce. It is also worth considering that without the consent of the spouse, an individual entrepreneur cannot dispose of real estate acquired in marriage. Even if it is used only for commercial purposes.

Termination of activity

Along with the beginning of the status, its termination has a number of features that must be observed. The entrepreneur has the right to terminate this activity at any time by his own decision. To do this, he needs to fill out an application (form No. P26001) and pay a state duty (160 rubles). After submitting the necessary documents to the tax office, a positive decision is obtained and a mark is entered in the state register on the termination of activities. In addition to this reason, the reason for changing the status of an individual entrepreneur may be:

businessman's death
bankruptcy declaration,
injunction to carry out such activities,
invalid certificate of an individual entrepreneur (expiration).

The legal status of an individual entrepreneur has many advantages compared to legal entities and ordinary citizens, but there are also some disadvantages. In any case, it cannot be said that an individual entrepreneur is an ideal form for carrying out commercial activities. With the right approach to build successful business possible regardless of the legal form. In the process of work, it is important to take into account the requirements of the law, to have an idea of the rights and obligations, and then it will be possible to avoid many problems.

Video - "Comparison of IP and LLC"

For many who are just starting to enter the business, the legal status of an individual entrepreneur is not always clear. Meanwhile, an accurate understanding of the essence and significance of this provision is simply necessary when choosing one or another organizational and legal form for one's own business.

Unfortunately, the level of legal literacy, despite the abundance of lawyers, in our country is often not at a very high level. As a result, even promising business ideas turn out to be unrealized for the simple reason that a person could not fully understand all the nuances that the status of an individual entrepreneur brings with it. the result of this is either a failed business, or a complete rejection of the implementation of your idea.

Features of the IP status

First of all, we note that the legal status of an individual entrepreneur has a dual nature, therefore, the norms of legislation applicable to individuals, as well as business entities, are simultaneously applied to it.

This duality is caused by the fact that a citizen who has expressed a desire to carry out entrepreneurial activity receives such a right, but at the same time he does not create a new economic entity and, to a certain extent, receives a more extensive list of civil rights.

Features of IP activities

The most significant right in acquiring the status of an individual entrepreneur is the ability of a citizen to carry out any business activity that is not prohibited by law, which allows you to make a profit.

At the same time, a number of duties are assigned to him, the fulfillment of which provides for the legal status of an individual entrepreneur. For example, on the payment of mandatory tax payments, fees and contributions to off-budget funds.

At the same time, in many legal relations, an individual entrepreneur acts on the basis of the norms of legislation for individuals. For example, if he uses for commercial purposes vehicles, which are issued to him, then he also pays the transport tax as an individual, in the manner established for this category of taxpayers.

There is also no distinction in relation to other property of a citizen-entrepreneur. For example, in the event of his bankruptcy, everything that belongs to the entrepreneur is included in the bankruptcy estate, regardless of the purpose for which this or that property was used.

Peculiarities of judicial protection of the rights and interests of individual entrepreneurs

Another feature in the status of an individual entrepreneur lies in the options for judicial protection of his interests. Thus, the protection of the rights of individual entrepreneurs, as a business entity, is carried out in Arbitration courts. And disputes arising from civil law relations of an entrepreneur as a citizen are subject to consideration in courts of general jurisdiction. Therefore, it is extremely important, in the perspective of litigation, to determine on the basis of what an individual entrepreneur acts in a given situation, or rather, as someone, a citizen or an entrepreneur. Depending on this, a further scheme for the protection of rights and interests is being built.

Features of the civil law status of an individual entrepreneur

Note that on this moment there is no normative legal act that would regulate in detail the civil legal status of an individual entrepreneur. Meanwhile, attempts to prepare such a bill have been made repeatedly, both at the level of the legislature and in the form of initiatives from various public organizations. In a number of regions, local legislative acts have been adopted at the local level, which emphasize the special position of citizens with the status of individual entrepreneurs. First of all, the data legal documents associated with support measures for small businesses.

Nevertheless, the adoption of a single law at the federal level, which would legislate the specifics of the legal status of individual entrepreneurs, would greatly facilitate life, both for the entrepreneurs themselves and for their counterparties and government bodies. Until then, it is necessary to be guided by many regulatory documents that contain provisions regarding the status and features of the work of an individual entrepreneur.

For a detailed disclosure of all the nuances of the position of a citizen registered as an individual entrepreneur, it makes sense to consider all the strengths and weak sides such a position. By the way, it is this analysis that best reveals the features of the legal status of an individual entrepreneur.

Benefits of being an individual entrepreneur

p> Note that all the advantages of registering a citizen as an individual entrepreneur can be divided into two groups:

advantages over the usual position of a citizen;
advantages of an individual entrepreneur in comparison with other organizational and legal forms of entrepreneurial activity.

Advantages of individual entrepreneurs over ordinary citizens

In comparison with general civil rights, the civil legal status of an individual entrepreneur significantly expands the possibilities of a citizen. Most importantly, he is given the right to conduct entrepreneurial activities. A citizen who is not registered as an individual entrepreneur does not have the right to perform any commercial operations aimed at making regular profits. Otherwise, he may be held liable, depending on the consequences of criminal or administrative.

In the field of taxation, an individual entrepreneur is exempt from paying personal income tax, which is mandatory for all citizens of the Russian Federation to pay on most types of income received.

Advantages over legal entities

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

The organizational and legal form of an individual entrepreneur allows him to independently manage all the income received in the process of entrepreneurial activity.

The mode of use of property, which an individual entrepreneur can use both for commercial purposes and for his own needs, has also been significantly simplified. By the way, family members of an entrepreneur also have the right to dispose of property, including those used in their business activities.

Meanwhile, commercial activity not the only thing a sole trader can do. The legislation does not restrict his right to work for hire, with the exception of certain positions, to be the founder of legal entities, the founder or member of public organizations, to enter into various legal relations as an individual.

Disadvantages of IP status

At the same time, the acquisition of the status of an individual entrepreneur imposes certain obligations and restrictions on a citizen. We have already noted that from the moment of registration of an individual entrepreneur, a citizen is obliged to make payments established by law to extra-budgetary funds and taxes. In addition, he must regularly submit the established reporting forms provided for business entities. And when using hired personnel, perform the duties of a tax agent for the transfer of mandatory payments from the income of individuals.

Restrictions of individual entrepreneurs

There are also certain restrictions for persons with the status of individual entrepreneurs. For example, they cannot be accepted into the state civil or other service. In addition, there are certain restrictions that directly relate to the implementation of entrepreneurial activities. So, there is a certain list of activities, the implementation of which is closed to individual entrepreneurs.

Cons compared to legal entities

We also note that situations of refusal of a transaction with an individual entrepreneur in favor of a legal entity are not uncommon, since for many managers and business owners, as well as ordinary citizens, the status of a legal entity. face is more attractive than IP. The reasons for this opinion are different and require a separate detailed discussion.

However, the most significant drawback of the status of an individual entrepreneur, which most often leads to the rejection of such an organizational and legal form, is that an individual entrepreneur is liable for his obligations with all the property that belongs to him by right of ownership. The Civil Code provides that an individual entrepreneur carries out his activities at his own risk. As a result, failures in business can lead not only to its loss, but also to the loss of most of the property of the entrepreneur's family.

What other disadvantages are there?

The right of ownership of individual entrepreneurs has another nuance, which for some reason is rarely paid attention to in practice. The fact is that if an entrepreneur is married, then all his income received in the course of entrepreneurial activity, as well as property acquired from them, in case of divorce, are subject to division between spouses.

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

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

Summary

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

For example, it is not uncommon for an entrepreneur who has the habit of spending part of the profits from a business for his own needs, and does the same with targeted funds received as part of supporting small businesses or obtaining a loan. And if in the first case there are no restrictions on the use of profits, then in the second situation, this may lead to Negative consequences further.

By the way, the mistake of many novice entrepreneurs often lies not in the reasonable expenditure of proceeds. As a rule, not a very psychological attitude works: “my profit, I do what I want”. As a result, the business is left without financial support, and often deprived of the opportunity to make the necessary payments.

This problem is not unique to our country. In many countries where the legislation provides for a legal position similar to that of an individual entrepreneur, applicants for this status undergo psychological testing, which allows them to determine a person’s ability to run their own business.

In Russia, for the time being, the conditions for acquiring the status of an individual entrepreneur do not provide for such a mandatory procedure, which may be why people who are deprived of an entrepreneurial spirit often get into business. As a result, many good ideas remain unfulfilled, and a person is disappointed in his abilities. And if the loss of the status of an individual entrepreneur is also accompanied by serious debt repayment costs, then tragedies are not uncommon here.

All this makes you think again and firmly weigh your capabilities in the implementation of your plans, and if you have faith in yourself and it is justified, then it makes sense to take risks and open your own business.

Economy

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

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

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

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

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

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

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

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