What is the legal form of the business better than an LLC or IP

What is the legal form of the business better than an LLC or IP
Что лучше ООО или ИП
What better company or entrepreneur?

according to the classification, in the Russian Federation emit a huge amount of organizational and legal forms (OPF) conducting economic activities, each of which detects the presence of various office business entity. From the definition of clear, that economic entities in Russia include any legal entities, as well as other organizations, able to operate without the formation of a natural person, or just considered individual entrepreneurs. It is the choice of legal form, as a form of liability, become the main criterion for the organization of small and medium-sized businesses, because this choice will depend not only on one or another form of taxation, but also a number of business opportunities for entrepreneurs. Consider the main forms of economic activity as the SP and OOO.

individual entrepreneurship – IP

If you choose this legal form of doing business, worth knowing, that the main feature will be the fact, that the owner will be responsible in the performance of certain obligations directly from the property belonging not only to the economic activities of institutions subject to them, but it is in his personal use.

The main advantages of such a registration form as individual enterprise (IP), include the following criteria:

  • The minimum number of constituent documents.
  • Doing fewer required reporting documents.
  • Having a choice of simplified tax reporting systems.
  • Installed amount of social and pension contributions.
  • No need for the presence of the authorized capital.
  • Minimum Requirements for Registration.

Negative aspects of doing business at the opening of individual entrepreneurship, a number of, following factors:

  • Individual entrepreneur (IP), as security for the obligations, It meets all the means at its disposal assets.
  • There are some restrictions on the exercise of certain activities.
  • The absence of a specific model legislation providing benefits in the field of tax legislation.
  • The package of documents in the organization of the legal form of running your own business is limited by law to provide social relief measures and various banking products.

Limited Liability Company – Ltd

The main feature of the legal support of business, as the organization of a limited liability company (Ltd), It is the fact, that this form can not only personally exercise entrepreneurial functions, but to resort to other natural or legal persons, with the co-founders function, as well as not to risk assets, located in private consumption answering for the obligations only available authorized capital.

The main advantages are the legal form of the company:

  • A wide range of bank lending programs.
  • Broad access funding from the state, along with plenty of indulgences economic.
  • A number of significant opportunities at the conclusion of civil - legal relations (contracts).
  • the possibility of organizing, as a franchise, and its own brand.
  • The open capacity change of legal form.

The main disadvantages of doing this kind of business, how OOO, It will be a series of circumstances mentioned below:

  • Register this kind of economic activity is associated with the registration of a large number of constituent documents.
  • Entrepreneurial activity requires reference documents, for subsequent submission to the state control.
  • High tax base.

on the video: OOO or IP (practical experience and pitfalls) by Anna Sokolova:

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