How to become an individual entrepreneur. Individual entrepreneur - where to start? Below will be the cry of my soul and personal experience

Many who want to engage in entrepreneurial activity have a question: to become an individual entrepreneur (IP) or a legal entity (JSC, LLP)? Everyone chooses for themselves, based on their individual situation, needs, desires and focus on results.

Advantages of individual entrepreneurship

Let’s take a closer look at the concept of “individual entrepreneur” and dwell on the advantages of registering as such.

Firstly, unlike a legal entity, an individual entrepreneur pays significantly fewer taxes, and secondly, the rates on these taxes often have low interest rates.

The rate itself depends entirely on the tax regime in which the entrepreneur operates:

  • work based on a patent - 3% of income;
  • work on the basis of a simplified declaration - 3-7%;
  • work according to the generally established procedure for calculating taxes - 5-30%.

In this case, income is understood as the summed amount of money for the sale of services, goods and work in general. Despite the fact that individual entrepreneurs will also have to pay social tax and contributions to savings funds, one way or another, the interest rate will differ greatly from legal entities.

The accounting system for individual entrepreneurs has been significantly simplified. Thus, an entrepreneur is not required to hire an accountant; he can handle most of the accounting on his own.

In addition, when working under a patent, the need for accounting is minimized. A legal entity requires a special person for these actions.

Easy to register. An entrepreneur needs to collect a number of necessary documents, but he is not required to provide any constituent papers.

The only thing is a certificate of state registration. In addition, all registration activities are carried out at the local tax committee.

Minimum costs. So, those who want to become an individual entrepreneur must pay a registration fee, which is equal to 4 MCI (monthly calculation index).

If necessary, you will have to pay for the production of various stamps and seals, however, for the most part this is not necessary.

How to become an individual entrepreneur: legal basis

Like many things in our country, the concept of individual entrepreneurship came to us relatively recently and previously bore the designation “entrepreneur without the formation of a legal entity.” Later it became “private”, then “individual”, familiar to everyone.

One way or another, an individual entrepreneur remains one who works for himself. He can engage in any type of activity: trade, scientific activity, provision of services, art, production.

In addition, he has the right to carry out all the work both independently and by hiring people for various positions. In some cases, an individual entrepreneur may not work, but, for example, rent out real estate.

According to the laws of the Russian Federation, any type of activity that allows you to extract profit must be registered in the prescribed manner. If the “entrepreneur” does not comply with this, it means that he is breaking the law, therefore, he falls under an article of the Criminal Code and must be punished.

As in many other areas, there are loopholes here, however, experience shows that official registration is much more profitable. Firstly, this will allow both the individual entrepreneur and his staff, if any, to receive pension contributions.

Secondly, contrary to the widespread stereotype about restrictions on activities due to the status of an individual entrepreneur, in reality this, on the contrary, implies legality, protection and economic independence.

Conditions for obtaining individual entrepreneur status

All conditions are described in the Civil Code. The most significant criterion is the age of the person wishing to register.

According to the law, an adult citizen can become an individual entrepreneur. However, in some circumstances the age may be 16 years, and sometimes even 14.

You can become an individual entrepreneur at 16 after marriage, but even this does not guarantee full legal capacity, since the person must be recognized as emancipated.

In this case, when registering, you will need one of these documents:

  • certificate of state guardianship authorities confirming legal capacity;
  • court decision;
  • consent of representatives - parents or guardians, certified by a notary, allowing the conduct of business activities;
  • a copy of the marriage certificate, which must be notarized.

Also, using approximately the same criteria, you can obtain the right to conduct certain types of commercial transactions from the age of 14, however, in this case, much is complicated by the law. For example, tax liability comes into force at the age of 16, while there is also property liability, which a citizen of 14 years old simply cannot bear.

By law, it is prohibited to become an individual entrepreneur in the following cases:

  • the citizen is an employee of special services and authorities;
  • the person is undergoing military service;
  • a person holds the position of an official at any level (municipal, regional, state).

Choice of activity

Before you go to register as an individual entrepreneur, you need to clearly decide what type of activity it will be and which branch of the economy it will relate to. It is important to note that an individual entrepreneur can choose an unlimited number of activities, but at the same time he will need to choose one as the main one.

Therefore, you need to evaluate what exactly will be (or already is) the primary source of income.

In addition, during registration, not just a specific sector of the economy is indicated, but it must comply with OKVED - the All-Russian Classifier of Types of Economic Activities. Next, state statistical bodies will list the future individual entrepreneur in a certain branch of the economy.

Some types of activities require a license, or they will have to be approved by regulatory authorities. Although the number of specified types is not limited, you should avoid those that imply any additional solutions and choose those that you have already worked with.

There are also areas that are inaccessible to individual entrepreneurs:

  • military sphere;
  • production and trade of alcoholic products;
  • private security services;
  • production and sale of pyrotechnics;
  • employment of Russian citizens abroad;
  • space-related activities;
  • securities industry;
  • pension and investment funds;
  • sale of electricity.

If the desired type of activity relates to one of the listed ones, it will be impossible to create an individual entrepreneur and it will be necessary to register as an LLC.

Find out how to become an individual entrepreneur from the video.

Tax choice

The next step is choosing taxation, which is a rather labor-intensive process.

There are several types:

  1. The general taxation system is a list of all taxes that an individual entrepreneur will need to pay; it is one of the most common, but at the same time a rather complex system; everyone who has not made certain additional instructions to choose a different type falls under it.
  2. The simplified taxation system (STS) is applied voluntarily if the individual entrepreneur has no more than 100 employees and the profit does not exceed 45 million for 9 months.
  3. The patent system may exempt individual entrepreneurs from paying certain taxes.
  4. The Unified Temporary Income Tax (UTII) replaces some other payments, for example, property and value added tax, as well as personal income tax.
  5. The Unified Agricultural Tax (UAT) also replaces some payments: property tax, VAT and personal income tax and is used directly by agricultural entrepreneurs.

One way or another, the choice of taxation is extremely important, and many secondary criteria must be taken into account, which will subsequently affect the entire work as a whole.

Preparation of documents

This stage turns out to be no less difficult; the main thing is to clarify all the points so as not to “fly by”.

The list of required documents includes:

  • a signed application and certified by a notary;
  • certified by a notary: an identification document (passport or something else), as well as confirming the place of birth (for example, a birth certificate);
  • document confirming place of residence;
  • a receipt confirming payment of the state duty.

With the above documents you need to come to the Federal Tax Service office and register.

Drawing up an application

The process of drawing up an application must be taken extremely seriously, since an accidental error in the text or inaccuracy in data can cause a refusal to assign individual entrepreneur status.

So, the main points:

  • when indicating the series and number of the passport, there must be two spaces;
  • The phone number is written starting with +7;
  • in the “district” item, the area where the city is located is noted, and not a part of the city specifically;
  • if sheet 003 remains blank, it is not provided upon submission;
  • It is prohibited to indicate your full name on sheet B using a computer - only manually with a black pen, and the signature is often placed under the supervision of a tax service representative;
  • There is no need to indicate an email unless it is an electronic submission;
  • It is prohibited to print documents on both sides of the sheet.

It is advisable to discuss the details with knowledgeable people, and perhaps seek help directly from tax officials.

Insurance premiums for individual entrepreneurs

Each individual entrepreneur, one way or another, will have to pay insurance premiums, no matter what their tax regime is. This fee is annual and the amount is fixed.

Contributions are paid to the FFOMS and the Pension Fund. Moreover, they will have to be paid even when no business activity is carried out. They are paid into Social Security, Health Insurance, and Retirement Accounts.

The tax regime used by the individual entrepreneur may affect the amount of tax payments. For example, if the work is carried out under a patent or UTII, the profit received does not affect the payment in any way.

According to the simplified tax system, it will be necessary to pay a single tax. The general system turns out to be quite unprofitable, since entrepreneurs have to pay not only personal income tax, but also VAT, as well as property tax.

In addition, if a businessman receives more than 300 thousand per year, then an additional contribution to the Pension Fund is also paid.

Submission of documents and review deadlines

After collecting all the necessary documents, they are directly submitted to government authorities.

There are three ways to do this:

What to do after registering an individual entrepreneur

After registering an individual as an individual entrepreneur, the applicant is issued the following documents by the tax service:

  • OGRNIP certificate;
  • extract from the Unified State Register of Individual Entrepreneurs.

After this, you need to perform a number of actions:

  • register with the Pension Fund of Russia, as well as with the Social Insurance Fund, while the latter must be contacted no later than 10 days after registration;
  • decide which taxation system to use in the future, and this also cannot be delayed (for example, in order to be on the simplified tax system, you need to submit papers no later than 30 working days);
  • if necessary, place an order for printing, and for some types of activities - a cash register;
  • notify state control authorities, most often Rospotrebnadzor;
  • pick up a letter from the statistics department;
  • open an individual bank account.

The notification is submitted in paper form, usually in two copies. The transfer of papers is carried out both personally and through a trusted person.

In addition, documents on starting a business activity can be sent by mail, as well as electronically. Within ten days the data will be updated and will be in the Rospotrebnadzor register.

Conclusion

Almost any citizen, especially an adult, can become an individual entrepreneur in Russia. However, for this you need to collect a significant package of documents.

In addition, obtaining individual entrepreneur status may be denied, so it is necessary to approach this issue as carefully as possible.

Individual entrepreneur status can also be obtained by citizens aged 16 or even 14 years old, but in this case it will be difficult to achieve, and subsequently the collapse of the activity is possible, since clients may not be able to trust the young entrepreneur.

The matter is not limited to submitting documents and becoming an individual entrepreneur. Then you need to perform many more manipulations just to be allowed to work, let alone the activity itself.

You can learn how to become an individual entrepreneur from the video.

In contact with

An individual entrepreneur allows you to conduct business without creating a legal entity. This is a fairly profitable and simple way to organize your own business. Many companies offer professional assistance with legal support for individual entrepreneur registration. This is often justified: their experience allows them to provide qualified services in a minimum of time.

Those who want to try their hand at opening an individual entrepreneur will find the detailed instructions we have compiled useful. By following it, you can easily register an individual entrepreneur yourself.

Individual entrepreneurs have their own characteristics compared to other organizational forms of business activity.

Advantages of IP:

  • the ability to legally engage in several types of activities simultaneously;
  • simplified taxation system;
  • the ability to control income/expenses without an accountant;
  • official registration of employees;
  • low cost of business maintenance;
  • availability of transactions without an invoice/stamp;
  • simple registration process;
  • ease of termination of activity.

Disadvantages of IP:

Individual entrepreneur registration procedure

Prepare in advance

The legislation of the Russian Federation determines that any citizen over 18 years of age who has issued a certificate of state registration of individual entrepreneurs has the right to carry out the activities of an entrepreneur.

Initially, the future individual entrepreneur needs to decide what he will do, that is select types of activities according to OKVED. It is better to specify several codes. Amendments to documents subsequently, if you wish to expand the list of permitted business operations, are carried out on a paid basis. 1st code is the main one. You can find the current database on the website http://www.okvad.ru. It is worth considering that some of them are tied to a specific taxation system.

The legal address is considered to be the address where the individual entrepreneur is officially registered. Thereby no need to rent premises, confirm the existence of ownership rights to it. It is also possible to operate in another district/city/region.

Prepare 1 copy of the documents required for registration. Application F No. P21001 for state registration of an individual indicates: passport and contact details, types of economic activity, place of registration.

The signature on it must be notarized if it is not the applicant who submits the documents. Also needed: receipt of payment of state duty, copies of passport (basic data with registration on 1 sheet) and TIN.

The state duty is paid at the nearest branch of Sberbank of the Russian Federation. Details must be clarified with the State Tax Inspectorate at the place of registration. You can fill out a receipt and pay on the official website of the Federal Tax Service.

It is advisable to optimize taxation. By filling out and submitting an application (in 2 copies) about your intention to switch to the simplified tax system (simplified system), you can reduce your tax burden and simplify your accounting. You can download the application form. It is necessary to decide on the interest rate: 6% of income, 15% of income minus expenses. Explanations from the Federal Tax Service will help you understand the nuances and calculate the rate that suits you.

List of documents for individual entrepreneur registration

After carefully checking the list of documents required for registering an individual for errors and inaccuracies, go to the nearest tax office in your area of ​​residence.

What is needed to open an individual entrepreneur:

  • application for registration of individual entrepreneurs (filled out on 5 sheets and stapled);
  • application for transition to the simplified tax system (if necessary);
  • quarter of state duty payment;
  • photocopies of TIN and passport information (some State Tax Inspectorates require a bound and notarized copy of all pages). Foreigners must additionally provide photocopies of:
  • residence permit;
  • confirmation of the actual address of residence in the Russian Federation.

You must have with you original passport, TIN. Form No. P21001 should be completed only in black ink in capital block letters or in Courier New 18 font on a computer.

Remember! The inspector must provide a receipt that he received the package of documents on a specific date. Sheet B F No. P21001 must be filled out in front of you and then returned.

Documents will be reviewed within 5 days. After its expiration, the individual entrepreneur is registered or rejected due to the presence of inaccuracies or incorrectly specified data, or the provision of an incomplete set of documents.

You can also submit documents:

  • by sending via the Internet (an electronic signature is required);
  • by sending by mail with a mandatory description of the attachment (it is better to declare the value).

You can find out the addresses of the Federal Tax Service in Moscow, St. Petersburg and other regions by providing some information.

Documents receiving

Do not forget to come back at the specified time to receive your completed registration documents. If desired, you can receive them by mail to your registration address.

A package of documents is issued:

  • extract from the Unified State Register of Individual Entrepreneurs;
  • notice of tax registration;
  • OGRNIP certificate;
  • notification of assignment of statistics codes;
  • notice of registration with the Pension Fund.

What to do after registration

Seal

You can order a seal from a special company, they do it within 3 days. You must have a copy of your state registration certificate with you. By law, it is not necessary to have a seal. However, having it will give you the following advantages:

  • reliability when concluding transactions;
  • additional protection of documents. There are also disadvantages:
  • the seal should always be at hand;
  • Sometimes it is necessary to update the stamp pad (additional costs).

Checking account

If you think it is necessary to have a current account, then before opening it, choose a bank. Treat this responsibly - read the services offered and customer reviews.

The procedure for opening an account for an individual entrepreneur is simple. It is enough to provide a set of documents to the banking institution that suits you. The list is established by banks individually. The current account will be ready within the day.

To receive an information letter from state statistics, you need to submit to the relevant authority at the place of registration of the individual entrepreneur:

  • a photocopy of the OGRIP certificate (or an extract from the Unified State Register of Individual Entrepreneurs);
  • original passport.

The procedure is free, the letter is issued within half an hour. It is necessary when opening an account.

Remember! Opening an account requires you to notify the territorial body of the Pension Fund within seven days, otherwise you face a fine of 5 thousand rubles. The notification is submitted in 2 copies, one of them is returned with the date, signature, and seal imprint.

On May 2, 2014, the obligation to notify the tax authority about the opening of an account was cancelled.

Registration with the Pension Fund and funds

By law, an individual entrepreneur must formally register employees. If you are an employer, you must register as an employer with:

    1. Compulsory Medical Insurance (occurs automatically after registration with the Pension Fund).

The deadlines are strictly observed from the moment of signing the 1st employment agreement with the employee:

  • Pension Fund – 30 days;
  • FSS - 10 days in advance. You need to collect the following set of documents:
  • passport;
  • extract from the Unified State Register of Individual Entrepreneurs;
  • agreement with the employee;
  • application for registration of an individual entrepreneur as an employer;
  • license (if there are licensed types of activities);
  • tax registration certificate;
  • certificate of state registration of individual entrepreneurs.

Individual entrepreneurs are assigned special numbers. Subsequently, they will need to be indicated in some documents.

As an employer, an individual entrepreneur is obliged to:

  • pay employees wages;
  • withhold personal income tax;
  • calculate insurance premiums in favor of employees;
  • submit reports to funds within specific deadlines.

Registration fee

Self-registration of individual entrepreneurs significantly saves the budget. You will not have to pay for the services of a law firm (1-4 thousand rubles) and a notary (about 1 thousand rubles). Total registration cost includes:

Mandatory part:

  • state duty - 800 rubles. + bank commission;
  • a small amount must be spent on making photocopies of passport pages and TIN.

Optional part:

  • cost of printing in companies specializing in this:
    1. regular with plastic equipment - from 200 rubles;
    2. automatic – from 500 rubles;
  • opening a current account in some banks is free, in others it costs about 800 rubles. (in addition, you will need to pay for monthly maintenance and access to Internet banking).

As you can see, registering an individual entrepreneur does not require large expenses or special skills.

Experts advise:

  • fill out forms carefully and accurately;
  • always carry your passport with you;
  • make photocopies of all individual entrepreneur documents without exception;
  • save receipts, registration and current documents of individual entrepreneurs;
  • keep original documents.

After completing these steps, you will receive a package of permits to conduct business activities. By correctly registering an individual entrepreneur, you will open a “clean” path for your business.

If you feel that you are not born to do a standard job, if you have great potential and strive for constant perfection, then you will certainly be interested in the possibility of organizing your own business.

A person driven by such a desire most likely asks himself more than once the main question: what is necessary for this?

The primary tasks will be the creation of business ideas and an excellent understanding of the structure of future activities. It is necessary to draw up plans for business development, marketing, and merchandise turnover. The overriding financial plan must not be lost sight of.

How to become an individual entrepreneur

To start carrying out business activities, you need to register and obtain a permit.

Important components of the success of a future entrepreneur:

Purposefulness and readiness for action.

The emergence of a new environment and readiness for new necessary acquaintances. Rotation among successful entrepreneurs. Ability to find common language with people. Basic knowledge of communication psychology.

Fear of failure and the possibility of mistakes should not be scary. No business can do without this.

The main thing is a person’s attitude towards possible failures, as well as the ability to find ways out of current situations.

It is necessary to put aside the fear of the new, be prepared for problems, hope for the best, but be prepared for anything.

Another important piece of advice is that you shouldn’t take money from the bank and get into lifelong debt to open a business. Primary investments should be saved and not borrowed.

Opening a small business does not require much investment. Over time, when income comes, material costs may increase.

How to become an entrepreneur in Russia

The main criterion is the age of the applicant. Any capable adult citizen can easily become one. A person has the opportunity to register a business upon reaching 16 years of age, with the agreed decision of the guardianship authorities, trustees, or the court. Teenagers over 14 years of age also have the same opportunity with parental consent.

It is prohibited for military personnel, municipal and state employees, security officials, and prosecutors to engage in individual entrepreneurship in our country.

It is necessary to provide a list of the following documents:

  • Application with a notarized signature.
  • Copies of documents: Identity card. Passport.
  • It is necessary to first make copies of the main page and the page indicating registration.
  • Birth certificate to determine the date and place of birth.
  • For minors, a notarized statement of consent from legal representatives to open an individual business is required.
  • A certificate of payment of the state duty of 400 rubles must be attached.

When providing copies, you must also provide original documents.

How to submit documents for registration of individual entrepreneurship

You must submit the documents yourself to the tax office at your place of residence.
It is possible to transfer documents through intermediaries. This can be done through a law firm that registers entrepreneurs. This will save time, but will require a financial investment.

One option is to submit documents by mail, with a receipt.
In any case, registration is usually ready no later than 5-7 days.

Upon receipt of a positive decision, a record of state registration of individual entrepreneurs is made in the register of individual entrepreneurs.

In case of refusal, the documents are returned to the owner of the application, with the obligatory stipulation of the reason for the refusal.

Possible reasons for refusal:

  • Incorrect list of documents presented.
  • State registration that has not expired in the same capacity.
  • A year has not passed since the date of the previous bankruptcy.
  • Deprivation of the right to engage in entrepreneurial activity by a court decision, with specified dates and times, and the possibility of resuming activities.

How to become an entrepreneur in Kazakhstan

The formation procedure is almost identical to the procedure in Russia.

You must be an adult citizen.

Documents required for the procedure:

  • Statement of desire to conduct business.
  • Identity card + its copy.
  • Certificates confirming registration and permanent residence. Original and copy.
  • Photo 3.5 x 4/5
  • Payment of the duty and a document confirming this payment. The duty for 2016 is 2121 tenge.

How to become an entrepreneur in Belarus

It is necessary to provide documents from the list:

  • Passport and its copies.
  • Photo 3x4
  • The original or a copy of the document certifying payment of the state duty.

After receiving the notice of registration, the person submitting the application must appear at the tax office and provide a copy of the passport and a copy of the certificate of mandatory registration.

Citizens who have an outstanding criminal record against the procedure for carrying out economic activities cannot become individual entrepreneurs in the Republic of Belarus. Citizens, individual activities are in a state of bankruptcy.

How to become a successful entrepreneur

To successfully establish an individual entrepreneurship, you need the following:

  • First, you need to unconditionally believe in your abilities and desires. If a person is confident in himself, then despite the failures he encounters, he will certainly achieve success.
  • Secondly, the work that a person plans to do must be clear and understandable to him. Under any circumstances, business should come first, not profit.
  • Thirdly, it is necessary to clearly structure the assigned tasks and follow the planned course towards them.

Usually, people who start their own business have a very good idea of ​​the work in the area they are going to engage in. Most often, aspiring entrepreneurs receive the necessary theoretical and practical basis at their previous places of work, as ordinary employees.

To undertake is to start something new, to organize, arrange, launch. At the same time, entrepreneurial activity has a risky nature, because the start of any project in itself does not guarantee its success. How to become an entrepreneur from scratch to reduce possible risks? How to become an individual entrepreneur and obtain the official right to do business? Is it possible to predict, at least in general terms, whether your business will generate income or not? You will find out the answer to these and other questions from our article.

Who are you in spirit - an entrepreneur or an employee?

Psychologists identify a special type of thinking - entrepreneurial. A certain percentage of people have this type of thinking from birth, but it can be developed. The main features of this thinking are initiative, the ability to take risks, willingness to fail, responsibility, and communication skills.

A real entrepreneur will not be stopped from realizing his idea by the lack of resources at the start. He will move forward, even if everyone around him or circumstances are against it. There are very few such people, but even they do not always achieve success.

Most people have an employee mindset. They are focused on working under the control of a boss and performing only certain job functions. Of course, paid work can also bring significant income, but it is no coincidence that more than half of workers periodically think about how to become a successful businessman. Competition in the labor market is very high. To count on a high salary, you need to bring your employer several times more income than he pays you.

If you are not yet ready to take the risk of independent entrepreneurial activity, but at the same time do not want to work for someone all your life, there is a way out. You need to start your own business without quitting your job. How to become a businessman while continuing to work for hire? For those who want to combine work and business, we have prepared.

Where to start your business

So, if you are basically ready to start your own business, you need to understand. The main idea of ​​the business is that income comes from people whose needs or requests you satisfy at a high level.

All types of business activities can be divided into three large groups: services, trade, production. You need to choose the direction that you like and where you see some potential.

You need to study your business idea well, because there are many nuances in the implementation of each of them. Where can I find this information? You may be familiar with this business from the inside because you work in a similar field. Or maybe you are a consumer or client of the direction you want to launch.

For our readers, we have prepared a series of books about activities popular among small businesses. These include retail and wholesale trade, online stores, catering, beauty services, and legal services. The series is available to all users of the Regberry service in their personal account.

After you have chosen your idea, and at a theoretical level you already imagine how to become an entrepreneur from scratch, you need to prepare a business plan. Of course, this document does not at all guarantee entrepreneurial success, but at least it will outline the framework for the implementation of your idea:

  • necessary costs;
  • consumer market analysis;
  • marketing analysis;
  • estimated income;
  • payback period of the project.

Professional marketers can create a good business plan, but their services are quite expensive. What to do if you are not ready to spend 30-50 thousand rubles on a business plan?

This document can be developed on a special state portal for aspiring entrepreneurs. Business Navigator evaluates the prospects of a business idea for almost 200 Russian cities.

Moreover, calculations are based on real statistical data of consumer demand for a specific product or service. In addition, data on the profitability of 5,000 active business entities is used.

The business navigator allows you to select a direction of activity based on any of the following criteria:

  1. According to the relationship between supply and demand. In the city you choose, the first to be offered are areas where there is insufficiently satisfied consumer demand in specific areas. You will immediately see where there is a lack of catering outlets, fitness clubs or furniture stores.
  2. By the amount of investment. Business without investment is, of course, a myth. Yes, some services can be provided with only a telephone, computer and car. These are personal resources that can be used in business, but for which you have already paid once. And the minimum investment amount that the navigator takes into account is 50,000 rubles.
  3. By type of business. Here you can choose from a whole list of objects: shops, consumer services, leisure, sports clubs, etc.

Working in the navigator is intuitive, and as a result you receive a free business plan that meets the requirements of the Small Business Support Fund. After studying the prepared document, you can move on to the legal part of the question: “How to become a businessman?”

What form should I use to register a business?

You can conduct business either in the format of a legal entity (LLC/JSC) or while remaining an individual (IP). In Russia there are approximately equal numbers of both types of business entities. But if this is your first business, then it is easier to start it as an individual entrepreneur.

Of course, there may be reasons why you immediately want to register a company rather than an individual entrepreneur. Typically, a limited liability company is registered if several partners start a business or if serious investments are expected to be attracted in the future.

We will tell you further about how to become an individual entrepreneur, and in this table you will find some of the most important differences between the two organizational and legal forms. But remember that in the question of how to become a businessman, the choice of form of business registration still does not play a decisive role.

Individual entrepreneur

Limited Liability Company

Full property liability of an individual for the obligations of his business. Seizure can be imposed even on property that was not used in business activities or was acquired before the start of the business.

The founders are liable for the debts of the LLC to the extent of their share in the authorized capital. However, if the liquidated organization has tax debts, and the LLC’s funds are insufficient, then the founders themselves must pay them. In addition, business owners can be held vicariously liable at the expense of their personal property.

Simple withdrawal of business profits, no additional tax.

The profit of the LLC is distributed among the participants in the form of dividends, on which 13% personal income tax must be paid.

Simple management, no accounting required, easy to stop business activities.

There is a mandatory corporate document flow, accounting must be kept, and liquidation of a company is a complex and lengthy process.

More tax benefits, relatively low penalties.

Fewer taxation options, high fines that are imposed on both the organization and the manager.

There are fewer permitted types of activities; most entrepreneurs are engaged in small trade or providing services to the population. The scale of the business is usually small, and it is impossible to officially attract partners. Deregistration of an individual entrepreneur terminates the business.

All legal activities are permitted, including all licensed activities. New partners or investors can be attracted to the business; the composition of the original participants can be completely changed without stopping the LLC’s activities.

How to open an individual entrepreneur

You can learn about how to become an individual entrepreneur in an organizational sense from ours. And here we will provide a short checklist for those who want to prepare documents for registering an individual entrepreneur using our free service.

  1. Register in your personal user account by entering your email.
  2. Decide what types of economic activities you will be engaged in and select the corresponding OKVED codes.
  3. Fill out the form fields in the document preparation service. To do this, you need to provide your full passport details.
  4. Find out the contacts of the tax office, which accepts documents for registration of individual entrepreneurs. Registration of individual entrepreneurs takes place at the registration address in the passport. If there is no permanent registration, but there is a temporary one, then registration is allowed at this temporary address.
  5. Pay a receipt for the state duty in the amount of 800 rubles according to the details of the specific Federal Tax Service. If you submit documents for registration at the MFC, the receipt must indicate the details of the multifunctional center itself, and not the inspection.
  6. Select the tax system you will work with and prepare an application for switching to preferential treatment. If you do not do this, you will be subject to the general system (OSNO) by default, where the tax burden is highest.
  7. Submit to the tax office or MFC a completed application in form P21001, a copy of your passport, and a receipt for payment of the duty. If you decide to switch to a simplified taxation system (STS), then the application for the transition, prepared in our service, is submitted along with documents for registration of individual entrepreneurs.

People are divided into two categories: some can work under superior management and live from paycheck to paycheck, for others it is a hard routine that turns life into a kind of hell. People of the second category make excellent entrepreneurs, but desire alone is not enough for this, although it depends on it whether the first step is taken. The question of how to become an entrepreneur is occupied mainly by those who want to achieve independence and intend to build their well-being more actively than saving a penny from their salary.

How to become an entrepreneur, where to start your business

Of course, the desire to build your own business is very important, but it is only on this basis that it is impossible to build a truly profitable business. The whole problem is that such a desire may be too abstract. I want to become an entrepreneur - this is a vague formulation, it is as vague as the desire to have a lot of money. A vague goal makes it impossible to move forward because the direction of movement is unknown. So, how to become an individual entrepreneur, where to start?

First of all, you need to decide on the goal; for this it is worth conducting an audit of your own talents and skills. For people with artistic taste and bright creative thinking, it is better to select a business that suits this particular talent, but pragmatists who prefer the world of clear numbers will feel uncomfortable in a space where everything is based on creativity.

How to choose a direction of work

Demand gives rise to supply, this old truth makes it possible to find your niche and decide on the direction. This requires an analysis of consumer demand, and where it intersects with your capabilities is where the right direction of work begins. For example, for a talented chef, a true culinary artist, anything related to food would be a good option. It doesn’t have to be your own restaurant, because bringing such a project to life requires a significant amount of money and effort. Although, if there are opportunities, you should not discount this idea.

But how can someone whose talents lie far from obvious solutions become an entrepreneur? In fact, any specialist can open his own business, from an electrician to a cleaner; not all professions require a bright sign; there are also those who provide this sign with the necessary resources. In commerce, success depends on the presence of an end consumer for a product or service, so those entrepreneurs who make other entrepreneurs their clients will certainly not go wrong.

Production, services or sales

Business as such can be divided into three categories: production of various goods, services or sale of goods. Each activity requires different skills and talents, but there are some generalities. Anyone who is thinking about how to become a private entrepreneur must build a plan of action. First of all, this is the formulation of a commercial proposal that will interest customers and the provision of this proposal with goods or services.

Sales is a fairly profitable business, but it is in an area of ​​fierce competition. Stores of the same type with approximately the same assortment can multiply only to a certain limit, since there are not infinite buyers. But manufacturing may have broader prospects, especially considering the number of existing sellers who are constantly in search of a product that will distinguish them from their competitors.

For those who cannot produce goods and do not have trading talents, services are an excellent option. How to become an individual entrepreneur in the services market? Even if there are already competitors in this niche, this does not mean that you should give up the fight in advance. On the contrary, a service already available on the market makes it possible to analyze the possibilities of making it better, more accessible, of higher quality and, as a result, take a leading position.

Preparatory stage

You will have to invest money in any business, even the smallest one. However, before you start spending start-up capital and registering documents, you need to carry out a preparatory stage; everyone who knows how to become an entrepreneur from their own experience has already learned about this from their own experience. Everything that can be done for free and without registration must be done at this stage.

You can analyze the chosen line of business, enter into a preliminary agreement with suppliers, find premises, prepare all the necessary documents, and provide yourself with start-up capital. Some aspiring businessmen conduct tests on their friends and relatives, testing their own talents in action. For example, a designer can help with interior selection, and a stylist can help with image development.

Start-up capital

How to become an entrepreneur from scratch without financial investments? There is only one honest answer to this question: no way. Even if you are just going to open a small hairdressing salon with one chair, you will have to buy tools, equipment and furniture, pay for rent and utilities. Finally, funds will be required to pay for the registration of an individual entrepreneur, although this is significantly cheaper than an LLC.

Many successful businessmen recommend starting small and trying not to take out loans with interest - the risk of not only losing money, but also remaining in debt is too great. It is better to develop a minimum plan, save money from your salary, and enlist the financial support of relatives and friends. At the very least, you can agree with them to defer the repayment of the debt if something goes wrong.

What is a business plan and why is it needed?

Many people consider a business plan unnecessary, unimportant, or, on the contrary, too complex a project to even begin to draw up. However, it is the business plan that helps to calculate in advance all the necessary expenses, analyze all controversial issues, and provide ways to solve possible problems. This document is a summary that you can rely on in moments of uncertainty and confusion.