Often, having decided to organize his own business, an entrepreneur faces a difficult choice. On the one hand, it can take shape as an individual entrepreneur, on the other hand, it can choose a more presentable form of organization like LLC or ZAO. Some newcomers to the business are not very clear about the differences between these organizational forms.
Before choosing an IP or LLC, one must take into account all the pros and cons of these organizations and understand how LLC differs from IP. IP is the simplest form of doing business. The status of a non-profit policy can be obtained by spending a minimum of funds. In case of individual entrepreneurship, the presence of authorized capital is not required .
Beginners often ask the question: IP or LLC - which is better? In fact, one cannot say that one form is better than another. Simply, each of them has advantages and disadvantages.
IP, being a simpler form of doing business, also has disadvantages. For example, in case of debt, an entrepreneur may lose all his property. Even an apartment and a car are taken into account, which do not have a direct relationship with the company. Moreover, an individual entrepreneur can be registered only at the place of residence, and business can be conducted throughout Russia. When choosing whether to open an IP or LLC, it must be remembered that LLC (and ZAO) have a more complex reporting system. Limited liability company is subject to high tax. Such organizations must compulsorily maintain tax reporting and provide it as necessary.
However, in some cases, the organization of an LLC or a ZAO is necessary. It is known that not everyone takes individual entrepreneurs seriously. LLC looks more prestigious and presentable. The entrepreneur who issued the IP has the print format "IP Ivanov A. A." This is the official name of his organization. If you plan to create a large-scale production, then such a print will look comical. Thinking about choosing an IP or LLC, you should dwell on how significant it will be for doing business.
For example, for small shops where goods are sold in small retail, there is no difference. But for those organizations that have to cooperate with other companies, this can be very critical. If a company is created for sale, it is better to even choose not a private entrepreneur or LLC, but a more serious company. Of course. The cost of registering a CJSC is much higher. So, for organizing an IP, you need to spend 800 rubles, for an LLC - 4 thousand, and for a company - 24 thousand rubles. But at the same time, the organization of a closed joint-stock company is much easier to file. It is difficult to sell an IP as a company, because it is fully framed by the owner.
LLC - this is the average option between an unpresentable IP and an expensive company. In addition, it is easier to attract shareholders and investors in a closed joint-stock company, and for an individual entrepreneur or LLC this is a very difficult task. Most really large organizations are in the form of OAO. This allows them to freely issue shares and attract serious capital. A company may have a limited number of shareholders.
If the business is not formed for sale and there are no plans to attract third-party capital, then it is possible to make an IP. This will allow carrying out activities in the country, facilitate reporting, but at the same time it will not create the company the desired image. This form is very attractive to retailers. It does not require registration of branches and a report for equipment at workplaces. While for LLC the report for the equipment is required. Opening a new office, the company is obliged to notify government agencies about this. Both for LLC and IP there is both a general taxation system and a simplified one. Therefore, it is not worth worrying about the fact that with LLC it will not work out to issue a "simplified payment plan". It is more important to decide whether the design of the LLC is worth the reporting costs that the entrepreneur faces.