Why should an entrepreneur register an LLC?

According to the latest statistics, every second entrepreneur when registering his first business registers a private entrepreneur (individual entrepreneurship ). At the same time, about 90% of entrepreneurs register LLC (Limited liability company) as their second enterprise. What is the matter here? Can all novice businessmen immediately open an LLC, not an IP?

The question "what to register when creating a business?" For today remains open and actual. And there are at least three reasons for this.

The first reason: when opening their first business, most people are simply reinsured. Indeed, what if they suddenly do not get a business? In this respect IP is easier to register and to close.

The second reason: when registering an enterprise, beginning businessmen try to reduce overhead costs. After registering an IP, they do not need to contribute money to the charter capital, separately hire a bookkeeper to work ...

The third reason: beginners simply do not know many advantages of LLC.

In order to help novice businessmen "correctly" decide on the registration of their company, we will answer the main question: "Why does an entrepreneur need to register an LLC?" Obviously, the answer to this question lies in the advantages of LLC.

Advantages of LLC:

1) Limited liability for debts.

Very useful quality, in practice meaning that even if you owe your creditors a million, to answer for debts you will be within your contribution to the authorized capital.

2) Ability to conduct any activity.

Under the law, subject to the acquisition of the necessary permits and licenses, LLC can deal with almost any kind of activity. Unlike PI, for LLC in this sense there are many restrictions and bans, for example - on the sale of alcohol products ...

3) Taxation.

All taxes are paid based on the profits received. If the enterprise did not conduct activity at any one time, then taxes are not deducted for this period either.

4) Doing business indirectly.

The founders of the LLC do not need to manage their enterprise personally. To do this, you can hire a director or a professional manager. At the same time, there is no need even to issue a power of attorney to them. You issue an order for the company and go ahead ...

5) Possibility of business expansion.

Limited Liability Companies have excellent opportunities for their expansion: reorganization of production, merger with another commercial structure, attraction of outside investments ...

6) Charter.

Many important points can be reflected in the company's charter . For example, the property shares of participants in the enterprise, the ban on the sale to outsiders of its share of the company when the founder leaves it, etc.

7) The established legal practice.

Organizational and legal form The limited liability company has long and successfully exists in the legal field. Thanks to which at the moment, virtually all matters relating to the commercial activities of these enterprises are legally regulated.

8) Liquidity.

This enterprise can be sold and bought. Some lucky businessmen even build the whole business on this: they buy unprofitable enterprises, organize their production, and then sell them.

From the above advantages, it is clearly seen that LLC compared with the IP is much better adapted to business. This is the conduct of almost any activity, and opportunities to expand business, and attract investment ... Why does an entrepreneur register an LLC? For a comfortable conduct of prospective and serious business!