What is better to open: LLC or IP? Advantages and disadvantages of IP and LLC. The difference between IP and LLC

What is better to open: LLC or IP? Having decided to throw off the shackles of office slavery and no longer work "on my uncle," developing your own business, you should know that it must be legitimate from a legal point of view. That is, you need to register with the bodies of the Federal Tax Service. And for this, first of all, it is necessary to decide which of these two options is more appropriate.

Definition

In order to understand what the difference between an LLC and an IP is, and which of the two forms of doing business is better, for starters it is worth looking into the Civil Code of the Russian Federation and reading their definitions.

An individual entrepreneur is an individual who has been registered in the manner prescribed by law as an entrepreneurial entrepreneur.

LLC - an economic company or an association established by one or more persons, with a share divided by share capital.

This means that by registering as an individual entrepreneur, you confirm that the entire business is entirely owned by you. If it is planned that several companies will manage the company or firm, it is more profitable to register an LLC - this form ensures protection of interests of each of the founders.

Documents required for registration

The difference between LLC and IP is also in what documents are required for business registration. In order to start working as an individual entrepreneur, you need:

• A registration application filled in form 12001;
• Application for USN (if necessary);
• Receipt of payment of state duty.

To register an LLC, you will need more documents:

• A registration application form 11001;
• Protocol or decision on the design of the LLC;
• Charter in 2 copies;
• A receipt confirming the payment of the state duty;
• Application for USN (if necessary).

In some cases, to register a new legal entity LLC, you will need to supplement the main package of documents with the establishment agreement (if there are several founders), as well as with papers relating to the legal address (a certified copy of the property certificate or a letter of guarantee from the owner).

The amount of state duty

Trying to understand what is better to open - LLC or IP, you, among other things, should pay attention to the fact that for registration of various forms of business, the amount of state duty will also be different.

In accordance with paragraph 1 of the first part of Article 333.33 of the Tax Code of the Russian Federation, the establishment of LLC is subject to a duty of 4 thousand rubles. The same document determines the necessary contribution for those who plan to work as an individual entrepreneur - in this case the cost will be much lower, only 800 rubles.

A responsibility

Of course, the difference between PI and LLC is closely tied to liability for obligations. So, individual entrepreneurs are responsible for all the property that belongs to them, except for the one for which the recovery can not be distributed by law (Article 24 of the Civil Code of the Russian Federation). But the members of the LLC bear only the risk of losses related to the activities of the organization, within the limits of their shares in the authorized capital. At the same time they do not answer personal property.

Administrative Responsibility

What is better to open: LLC or IP? When studying this issue, it is necessary to carefully consider issues related to administrative responsibility. If an offense was committed by an individual entrepreneur, then, in accordance with the laws of the Code of Administrative Offenses of the Russian Federation, they are liable as officials. At the same time, the measures imposed in such cases on LLCs (for example, fines) are much higher than those applied to officials. That is, PIs, brought to administrative responsibility, end up with much smaller losses.

Registration address

Individual entrepreneurs are registered at the place of residence, at the address of permanent residence registration, which is indicated in the passport. LLC - in the place where the sole executive body of the organization is located. In fact, in the second case you will have to rent or buy a legal address, which will entail additional costs.

Features of taxation and withdrawal of funds from accounts

In terms of withdrawing money from a settlement account, doing business in the form of IP is certainly a more convenient option. You can contact the bank at any time in order to receive cash. In this case, your expenses will be limited to the amount of tax - 6 or 15% (if you use a simplified taxation scheme).

As for LLC, withdrawal from cash accounts is rather problematic, and without appropriate justification it is completely impossible. One of the possible ways is to pay dividends to the participant of the organization, which is additionally taxed at a rate of 9% (PIT). In addition, as for the IP, it is necessary to pay a tax amount of 6 (if the general taxation system for the LLC is applied) or 15% (for USN).

Elimination of

Whatever one may say, this issue still should be divided into two parts - official and unofficial. From a legal point of view, LLC for liquidation needs about 3-4 months of time and up to 30-40 thousand rubles for various expenses. Elimination of IP requires much less financial costs (an average of about 5000 rubles) and time (up to 2 weeks). With the informal closing of IP problems do not arise at all, but in the case of LLC, you will need additional costs (depending on the organization's appetites, the amount can reach 30-50 thousand rubles). Immediately it is worth mentioning that it will not be possible to transform IP into LLC afterwards: it will be necessary to create a new legal entity.

Attraction of investments

The difference between PI and LLC is also traced in how easy it is to find investors for a business of one form or another. Practice shows that it is extremely difficult for an individual entrepreneur to do this, because he has no authorized capital, and, in fact, he acts on his own. The situation is complicated by the fact that the entire business belongs to a citizen, and therefore investing funds can not guarantee anything to the investor.

In the case of LLC, everything is much simpler. After all, at least a guarantee of the investor's interests can be its inclusion in the list of participants of the organization due to the repurchase of a stake in the authorized capital.

Reputation and image

Here, the IP once again loses a few. Even though with this form of business you are responsible for all your assets, the status of the LLC in the eyes of partners and counterparties is much higher, and therefore many companies prefer to cooperate with such organizations.

Summing up

In order to simplify your choice, we combine the pros and cons of PIs and LLCs into a single table.

What is better to open: LLC or IP? In fact, everything depends on the situation and the scale of the future business. If you plan to work on a large scale, cooperate with a huge number of companies and organizations, open branches and expand, attract new investors, it is more profitable, of course, to open a full-fledged legal entity.

However, it is worth remembering that with all the costs of registration, if you change your mind at some point or something does not work out, you will remain in the red, and the closing process may last for more than one month. Benefits of IP allow you to do it much faster and without serious costs.