Individual entrepreneur (IP)(legacy private entrepreneur (PE), PBOYUL until 2005) is an individual registered as an entrepreneur without education legal entity, but actually possessing many of the rights of legal entities. The rules of the civil code regulating the activities of legal entities apply to individual entrepreneurs, except in cases where separate articles of laws or legal acts are prescribed for entrepreneurs.()

Due to some legal restrictions (it is impossible to appoint full-fledged directors to branches in the first place), an individual entrepreneur is almost always a micro-business or small business.

according to the Code of Administrative Offenses

Fine from 500 to 2000 rubles

In case of gross violations or when working without a license - up to 8,000 rubles. And, it is possible to suspend activities for up to 90 days.

From RUB 0.9 million for three years, and the amount of arrears exceeds 10 percent of the tax payable;

From 2.7 million rubles.

Fine from 100 thousand to 300 thousand rubles. or in the amount of the culprit’s salary for 1-2 years;

Forced labor for a period of up to 2 years);

Arrest for up to 6 months;

Imprisonment for up to 1 year

If the individual entrepreneur fully pays the amounts of arrears (taxes) and penalties, as well as the amount of the fine, then he is exempt from criminal prosecution (but only if this is his first such charge) (Article 198, paragraph 3 of the Criminal Code)

Evasion of taxes (fees) on an especially large scale (Article 198, paragraph 2. (b) of the Criminal Code)

From 4.5 million rubles. for three years, and the amount of arrears exceeds 20 percent of the tax payable;

From 30.5 million rubles.

Fine from 200 thousand to 500 thousand rubles. or in the amount of the culprit’s salary for 1.5-3 years;

Forced labor for up to 3 years;

Imprisonment for up to 3 years

Fine

If the amounts for criminal prosecution are not reached, then there will only be a fine.

Non-payment or incomplete payment of taxes (fees)
1. Non-payment or incomplete payment of tax (fee) amounts as a result of understatement of the tax base, other incorrect calculation of tax (fee) or other unlawful actions (inaction) entails a fine in the amount of 20 percent of the unpaid amount of tax (fee).
3. The acts provided for in paragraph 1 of this article, committed intentionally, entail a fine in the amount of 40 percent of the unpaid amount of tax (fee). (Article 122 of the Tax Code)

Penalty

If you were just late in payment (but did not provide false information), then there will be penalties.

The penalties for everyone are the same (1/300 multiplied by the key rate of the Central Bank per day of the amount of non-payment) and now amount to about 10% per annum (which is not very much in my opinion, taking into account the fact that banks give loans for at least 17-20 %). You can count them.

Licenses

Some types of activities an individual entrepreneur can only engage in after receiving a license, or permissions. Licensed activities of individual entrepreneurs include: pharmaceutical, private investigation, transportation of goods and passengers by rail, sea, air, as well as others.

An individual entrepreneur cannot engage in closed views activities. These types of activities include the development and/or sale of military products, trafficking in narcotic drugs, poisons, etc. Since 2006, the production and sale of alcoholic beverages has also been prohibited. An individual entrepreneur cannot engage in: alcohol production, wholesale and retail trade th alcohol (except for beer and beer-containing products); insurance (i.e. be an insurer); activities of banks, investment funds, non-state pension funds and pawnshops; tour operator activities (travel agency is possible); production and repair of aviation and military equipment, ammunition, pyrotechnics; production of medicines (sales possible) and some others.

Differences from legal entities

• The state fee for registering individual entrepreneurs is 5 times less. In general, the registration procedure is much simpler and fewer documents are required.
• An individual entrepreneur does not need a charter and authorized capital, but he is liable for his obligations with all his property.
• An entrepreneur is not an organization. It is impossible for an individual entrepreneur to appoint a full and responsible director.
• Individual entrepreneurs do not have cash discipline and can manage the funds in the account as they please. Also, the entrepreneur makes business decisions without recording them. This does not apply to working with cash registers and BSO.
• An individual entrepreneur registers a business only in his name, in contrast to legal entities, where registration of two or more founders is possible. Individual entrepreneurship cannot be sold or re-registered.
• U employee IP fewer rights than a mercenary from an organization. And although the Labor Code equates organizations and entrepreneurs in almost all respects, there are still exceptions. For example, when an organization is liquidated, the mercenary is required to pay compensation. When closing an individual entrepreneur, such an obligation exists only if it is specified in the employment contract.

Appointment of director

It is legally impossible to appoint a director in an individual entrepreneur. The individual entrepreneur will always be the main manager. However, you can issue a power of attorney to conclude transactions (clause 1 of Article 182 of the Civil Code of the Russian Federation). Since July 1, 2014, it has been legislatively established for individual entrepreneurs to transfer the right to sign an invoice to third parties. Declarations could always be submitted through representatives.

All this, however, does not make the people to whom certain powers are delegated directors. For directors of organizations, a large the legislative framework about rights and responsibilities. In the case of an individual entrepreneur, one way or another, he himself is responsible under the contract, and with all his property he himself is responsible for any other actions of third parties by proxy. Therefore, issuing such powers of attorney is risky.

Registration

State registration individual entrepreneur carried out by the Federal Tax Service of the Russian Federation. The entrepreneur is registered with the district tax office at the place of registration, in Moscow - MI Federal Tax Service of the Russian Federation No. 46 for Moscow.

Individual entrepreneurs can be

• adult, capable citizens of the Russian Federation
• minor citizens of the Russian Federation (from 16 years of age, with the consent of parents, guardians; married; a court or guardianship authority has made a decision on legal capacity)
• foreign citizens living in the Russian Federation

OKVED codes for individual entrepreneurs are the same as for legal entities

Necessary documents for registration of an individual entrepreneur:

• Application for state registration of an individual entrepreneur (1 copy). Sheet B of form P21001 must be filled out by the tax office and given to you.
• A copy of the Taxpayer Identification Number.
• A copy of your passport with registration on one page.
• Receipt for payment of the state fee for registration of an individual entrepreneur (800 rubles).
• Application for switching to the simplified tax system (If you need to switch).

An application for registration of individual entrepreneurs and other documents can be prepared online in a free service.

Within 5 days you will be registered as an individual entrepreneur or you will receive a refusal.

You must be given the following documents:

1) Certificate of state registration individual as an individual entrepreneur (OGRN IP)

2) Extract from the Unified State Register of Individual Entrepreneurs (USRIP)

After registration

After registering an individual entrepreneur It is necessary to register with the pension fund and the Compulsory Medical Insurance Fund and obtain statistics codes.

Also necessary, but optional for an entrepreneur, is opening a current account, making a seal, registering a cash register, and registering with Rospotrebnadzor.

Taxes

Individual entrepreneur pays a fixed payment to the pension fund for the year, 2019 - 36,238 rubles + 1% of income over 300,000 rubles, 2018 - 32,385 rubles + 1% of income over 300,000 rubles. The fixed contribution is paid regardless of income, even if the income is zero. To calculate the amount, use the IP fixed payment calculator. There are also KBK and calculation details.

An individual entrepreneur can apply tax schemes: simplified tax system (simplified), UTII (imputed tax) or PSN (patent). The first three are called special modes and are used in 90% of cases, because they are preferential and simpler. The transition to any regime occurs voluntarily, upon application; if you do not write applications, then OSNO (general taxation system) will remain by default.

Taxation of an individual entrepreneur almost the same as for legal entities, but instead of income tax, personal income tax is paid (under OSNO). Another difference is that only entrepreneurs can use PSN. Also, individual entrepreneurs do not pay 13% on personal profits in the form of dividends.

An entrepreneur has never been obliged to keep accounting records (chart of accounts, etc.) and submit financial statements (this only includes a balance sheet and a financial performance statement). This does not exclude the obligation to keep tax records: declarations of the simplified tax system, 3-NDFL, UTII, KUDIR, etc.

An application for the simplified tax system and other documents can be prepared online in a free service.

Inexpensive programs for individual entrepreneurs include those with the ability to submit reports via the Internet. 500 rubles/month. Its main advantage is ease of use and automation of all processes.

Help

Credit

It is more difficult for an individual entrepreneur to get a loan from a bank than for a legal entity. Many banks also give mortgages with difficulty or require guarantors.

• An individual entrepreneur does not keep accounting records and it is more difficult for him to prove his financial solvency. Yes, there is tax accounting, but profit is not allocated there. Patent and UTII are especially opaque in this matter; these systems do not even record income. The simplified tax system “Income” is also unclear, because it is not clear how many expenses there are. The simplified tax system "Income-Expenditures", Unified Agricultural Tax and OSNO most clearly reflect the real state of the individual entrepreneur's business (there is an accounting of income and expenses), but unfortunately these systems are used less frequently.
• The individual entrepreneur himself (as opposed to the organization) cannot act as collateral in the bank. After all, he is an individual. The property of an individual can be collateral, but this is legally more complicated than collateral from an organization.
• An entrepreneur is one person - a person. When issuing a loan, the bank must take into account that this person can get sick, leave, die, get tired and decide to live in the country, giving up everything, etc. And if in an organization you can change the director and founders with the click of a finger, then in this case an individual entrepreneur can just close it and terminate the loan agreement or go to court. IP cannot be re-registered.

If a business loan is denied, then you can try to take out a consumer loan as an individual, without even disclosing your plans to spend money. Personal loans usually have high rates, but not always. Especially if the client can provide collateral or has a salary card with this bank.

Subsidy and support

In our country, hundreds of foundations (state and not only) provide consultations, subsidies, preferential loans for individual entrepreneurs. IN different regions - different programs and help centers (you need to search). .

Rice. Number of individual entrepreneurs per 10,000 population

Experience

Pension experience

If the entrepreneur pays everything regularly to the Pension Fund, then the pension period runs from the moment of state registration until the closure of the individual entrepreneur, regardless of income.

Pension

According to current legislation, an individual entrepreneur will receive a minimum pension, regardless of how many contributions to the Pension Fund he pays.

The country is undergoing almost continuous pension reform and therefore it is not possible to accurately determine the size of the pension.

Since 2016, if a pensioner has the status of an individual entrepreneur, then his pension will not be indexed.

Insurance experience

The insurance period for the Social Insurance Fund only applies if the entrepreneur voluntarily pays contributions to the social insurance (FSS).

Difference from employees

The Labor Code does not apply to the individual entrepreneur himself. It is accepted only for hired workers. An individual entrepreneur, unlike a director, is not a mercenary.

Theoretically, an individual entrepreneur can hire himself, set a salary and make an entry in work book. In this case, he will have all the rights of an employee. But it is not recommended to do this, because... then you will have to pay all salary taxes.

Only a female entrepreneur can receive maternity leave and only under the condition of voluntary social insurance. .

Any businessman, regardless of gender, can receive an allowance of up to one and a half. Either in RUSZN or in the FSS.

Individual entrepreneurs are not entitled to leave. Because he has no concept of working time or rest time and the production calendar also does not apply to him.

Sick leave is granted only to those who voluntarily insure themselves with the Social Insurance Fund. Calculated based on the minimum wage, the amount is insignificant, so in social insurance it makes sense only for mothers on maternity leave.

Closing

Liquidation of an individual entrepreneur is an incorrect term. An entrepreneur cannot be liquidated without violating the Criminal Code.

Closing an individual entrepreneur occurs in the following cases:

• in connection with the adoption of a decision by an individual entrepreneur to terminate activities;
• in connection with the death of a person registered as an individual entrepreneur;
• by court decision: forcibly
• in connection with the entry into force of a court verdict of deprivation of the right to engage in entrepreneurial activity;
• in connection with the cancellation of a document (delay) confirming the right of this person live in Russia;
• in connection with a court decision to declare an individual entrepreneur insolvent (bankrupt).

Databases on all individual entrepreneurs

Website Contour.Focus

Partially free Contour.Focus The most convenient search. Just enter any number, last name, title. Only here you can find out OKPO and even accounting information. Some information is hidden.

Extract from the Unified State Register of Individual Entrepreneurs on the Federal Tax Service website

For free Federal Tax Service database Unified State Register of Individual Entrepreneurs (OGRNIP, OKVED, Pension Fund number, etc.). Search by: OGRNIP/TIN or full name and region of residence (patronymic name does not have to be entered).

Bailiffs Service

For free FSSP Find out about enforcement proceedings for debt collection, etc.

With help, you can keep tax records on the simplified tax system and UTII, generate payment slips, 4-FSS, Unified Settlement, SZV-M, submit any reports via the Internet, etc. (from 325 rubles/month). 30 days free. Upon first payment. For newly created individual entrepreneurs now (free).

Question answer

Is it possible to register using temporary registration?

Registration is carried out at the address permanent residence. To what is indicated in the passport. But you can send documents by mail. According to the law, it is possible to register an individual entrepreneur at the address of temporary registration at the place of stay, ONLY if there is no permanent registration in the passport (provided that it is more than six months old). You can conduct business in any city in the Russian Federation, regardless of the place of registration.

Can an individual entrepreneur register himself for work and make an entry in his employment record?

An entrepreneur is not considered an employee and does not make an entry in his employment record. Theoretically, he can apply for a job himself, but this is his personal decision. Then he must conclude with himself employment contract, make an entry in the work book and pay deductions as for an employee. This is unprofitable and makes no sense.

Can an individual entrepreneur have a name?

An entrepreneur can choose any name for free that does not directly conflict with the registered one - for example, Adidas, Sberbank, etc. The documents and the sign on the door should still have the full name of the individual entrepreneur. He can also register the name (register a trademark): this costs more than 30 thousand rubles.

Is it possible to work?

Can. Moreover, you don’t have to tell them at work that you have your own business. This does not affect taxes and fees in any way. Taxes and fees to the Pension Fund must be paid - both as an individual entrepreneur and as a mercenary, in full.

Is it possible to register two individual entrepreneurs?

An individual entrepreneur is just the status of an individual. It is impossible to simultaneously become an individual entrepreneur twice (to obtain this status if you already have it). There is always one TIN.

What are the benefits?

There are no benefits in entrepreneurship for people with disabilities and other benefit categories.

Some commercial organizations also offer their own discounts and promotions. Online accounting Elba for newly created individual entrepreneurs is now free for the first year.

The legally secured property rights of individual entrepreneurs are regulated by Civil Law Russian Federation. The person carrying out the legally activity may have different means of production. The law does not prohibit the use of hired labor to work with them. In case of disputes, the individual entrepreneur bears financial liability. By decision of a judicial authority, the property of an entrepreneur can be alienated within the framework of administrative or criminal proceedings.

Legal aspects of the concept

Unlike individuals who use movable and immovable property for personal reasons, individual entrepreneurs use it for the purpose of extracting material benefits, creating consumer or production benefits. This fact is cornerstone in understanding the property relations of the entrepreneur with the state and business partners. Within the existing regulatory framework, the following forms of ownership of individual entrepreneurs are allowed:

• production and economic complex as a whole;
• construction for economic purposes;
• equipment;
• vehicle;
• materials;
• raw materials;
• rental property used for collective or individual farming;
• income received;
• production results;
• residential buildings;
• other.

The following types of activity serve as the basis for the emergence of property rights: individual, labor, personal or subsidiary farming, family or small enterprise.

Despite the fact that the law allows individual entrepreneurs to work in various fields, only a few of them gained great popularity. We are talking about consumer services for the population, retail trade in food and non-food products, catering. This is explained by several factors. The key here is the simplicity of organization and registration of the license. In 2nd place is the opportunity to start making a profit within 1-2 months from the moment you start working.

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Paperwork

When registering property rights to an individual entrepreneur, the emphasis is on the norms of Civil Law. Here you need to highlight 2 key points. If we're talking about about a created thing or material value, then all ownership rights to it belong by default to the author. This element can be used by another person for a fee or free of charge. This fact is fixed in the lease or sale and purchase agreement of the property.

In the event of the death of the owner, the rights to the objects created by him are inherited. If the deceased did not leave a legally formalized last will, then property rights are transferred, within the framework of current legislation, to blood relatives, a spouse. In some cases, the rights to the private property of an individual entrepreneur are transferred to his legal successor.

The second point is property that is jointly owned by all participants in the enterprise.

In the event of any judicial or administrative proceedings, the participants in the collective farm bear equal responsibility.

If one of the shareholders leaves the business, goes to jail or dies, then his share is subject to one of the following procedures in accordance with the established procedure:

• connects with parts of other participants;
• passes within the framework of the will left to another person;
• confiscated as a result of a court order;
• other.

Making a decision in each case requires careful consideration of the available documents. Sometimes the procedure is delayed due to disputes between participants in the enterprise or due to claims by creditors.

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Determining the type of property

Before submitting documents for registration of property rights, it is necessary to correctly determine the form of ownership according to OKFS for individual entrepreneurs. The all-Russian classifier is used to compile and record the tax base. It provides the following options:

• state;
• Russian;
• federal;
• property of the subject;
• state corporations;
• owned by stateless persons;
• property of a foreign legal entity;
• property of another state;
• municipal;
• property of religious organizations;
• property of consumer cooperation;
• property of political or public associations;
• federal-foreign ownership;
• international and foreign property;
• union ownership;
• mixed;
• other.

At the time of registration of rights, it is necessary to carefully indicate the classification of this property. Subsequently, the conditions and rules for working with it are largely determined by the OKFS. If the applicant has any difficulties with this issue, he can always seek advice from a lawyer.

: registration of ownership

IN Lately Cases of individual entrepreneurs applying for registration of ownership of real estate have become more frequent, and a number of specific questions arise.

When an organization acquires, for example, a warehouse, it puts it on its balance sheet; this property is used in economic activity and is the property of the organization. When an individual entrepreneur buys a property, he registers his right as an individual. Who owns this property: an individual entrepreneur or an individual? What if the property is used both in business and for personal purposes? How to differentiate between personal property and property used for entrepreneurial activity in case of bankruptcy of an individual entrepreneur?

These and other questions arise for individual entrepreneurs who use property subject to state registration in their activities. Let's try to answer them.

Is it possible to register real estate to an individual entrepreneur?

In accordance with paragraph 1 of Art. 23 of the Civil Code of the Russian Federation, a citizen has the right to engage in entrepreneurial activity without forming a legal entity from the moment of state registration as an individual entrepreneur. Under entrepreneurial activity according to Art. 2 of the Civil Code of the Russian Federation is understood as independent activity carried out at one’s own risk, aimed at systematically obtaining profit from the use of property, sale of goods, performance of work or provision of services by persons registered in this capacity in the manner prescribed by law. State registration of an individual as an individual entrepreneur is carried out in accordance with the Federal Law - Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs”.

By general rule, enshrined in paragraph 3 of Art. 23 of the Civil Code of the Russian Federation, the rules of the Civil Code of the Russian Federation are applied to entrepreneurial activities of citizens carried out without forming a legal entity, which regulate the activities of legal entities that are commercial organizations, unless otherwise follows from the law, other legal acts or the essence of the legal relationship. Legal relations of property belong precisely to that category of legal relations that are regulated by legal norms relating to citizens.

Note:

The law does not provide for the division of property of a citizen as an individual entrepreneur and as an individual.

According to Art. 24 of the Civil Code of the Russian Federation, a citizen is liable for his obligations with all the property belonging to him, with the exception of property on which, in accordance with the law, cannot be levied. Consequently, an individual can acquire ownership of real estate only in the status of an individual, but not an individual entrepreneur. Ownership of something does not depend in any way on the acquisition or termination of the status of an individual entrepreneur. This is one of the main differences between the two forms of entrepreneurial activity - a legal entity and an individual entrepreneur.

As stated in paragraph 3 of Art. 49 of the Civil Code of the Russian Federation, the legal capacity of a legal entity arises at the moment of its creation and terminates at the moment of making an entry about its exclusion from the Unified State Register of Legal Entities. That is, after its creation, a legal entity has the right to acquire any property. As for the termination of the activities of a legal entity, this can take place through either reorganization or liquidation. For both cases, the law provides for a special procedure during which questions about the future fate of the property of a legal entity must be resolved. There is no liquidation procedure for individual entrepreneurs. Citizen submits Required documents to the registration authority, and thus his status as an individual entrepreneur is terminated. And this does not in any way affect his legal property relations.

This position is also supported in the Letter of the Ministry of Economic Development of the Russian Federation dated January 1, 2001 No. OG-D05-63. The Ministry of Economic Development refers to Art. 212 “Subjects of property rights” of the Civil Code of the Russian Federation, according to which private, state, municipal and other forms of ownership are recognized in the Russian Federation. Property can be owned by citizens and legal entities, as well as the Russian Federation, constituent entities of the Russian Federation, municipalities (clause 2 of Article 212 of the Civil Code of the Russian Federation). This list includes only a citizen and does not include an individual entrepreneur.

Article 218 of the Civil Code of the Russian Federation establishes the grounds for acquiring property rights. Thus, ownership of new thing, manufactured or created by a person for himself in compliance with the law and other legal acts, is acquired by this person. Receipts received as a result of the use of property (fruits, products, income) belong to the person using this property legally, unless otherwise provided by law, other legal acts or an agreement on the use of this property. The right of ownership to property that has an owner can be acquired by another person on the basis of a contract of sale, exchange, donation or other transaction for the alienation of this property. In the event of the death of a citizen, the ownership of his property is inherited by other persons in accordance with a will or law. In case of reorganization of a legal entity, the ownership of the property belonging to it passes to legal entities - legal successors of the reorganized legal entity. In cases and in the manner provided for by the Civil Code of the Russian Federation, a person may acquire ownership rights to property that does not have an owner, to property whose owner is unknown, or to property that the owner has abandoned or to which he has lost ownership on other grounds provided by law . That is, the right of a citizen established by civil law to own property acquired on the grounds listed in Art. 218 of the Civil Code of the Russian Federation, is not determined by the presence or absence of the status of an individual entrepreneur.

In addition, Art. 5 of the Federal Law -FZ “On state registration of rights to real estate and transactions with it” (hereinafter referred to as the Federal Law) provides that the participants in the relations arising during the state registration of rights to real estate are, in particular, the owners of real estate, to whom This includes citizens of the Russian Federation. Individual entrepreneurs, based on the interpretation of this article, are not independent subjects of these legal relations. That is, when registering rights to real estate and transactions with it, an entrepreneur without forming a legal entity enters into legal relations regulated by Federal Law as a citizen. Moreover, clause 18 of the Rules for maintaining the Unified State Register of Rights to Real Estate and Transactions with It, approved by the Decree of the Government of the Russian Federation (hereinafter referred to as the Rules), also does not provide for the indication in this register of information about whether an individual has the status of an individual entrepreneur. It should also be noted that the Rules establish the specifics of state registration of rights and transactions only in relation to enterprises (clause 28).

Thus, the ownership of a real estate property is registered in the generally established manner for the citizen, regardless of whether he has the status of an individual entrepreneur.

It is also necessary to note the fact that a legal entity, unlike a citizen - an individual, has separate property and is liable for its obligations with this property. A citizen (if he is an individual entrepreneur without forming a legal entity) uses his property not only to engage in business activities, but also as his own personal property necessary for the exercise of inalienable rights and freedoms. In this case, the citizen’s property is not legally demarcated (clause 4 of the Resolution of the Constitutional Court of the Russian Federation dated January 1, 2001 No. 20-P).

The inadmissibility of registering ownership of a real estate by a citizen as an individual entrepreneur is directly confirmed judicial practice. Thus, in the Resolution of the Seventh Arbitration Court of Appeal dated January 1, 2001 No. 07AP-4096/2010, the court, analyzing the provisions of paragraphs 1 and 4 of Art. 23, art. 24 Civil Code of the Russian Federation, Art. 131 of the Federal Law - Federal Law “On Insolvency (Bankruptcy)”, came to the conclusion that the current legislation does not distinguish between the property of individuals and individual entrepreneurs/

For all questions that arise when registering the ownership rights of an individual entrepreneur to real estate, you can get advice at the address: Zonal district, village. Zonalnoe st. Lineinaya 1, tel.-4-82, 22-9-96

Head of the Zonal Department of the Federal Service for State Registration, Cadastre and Cartography

What is the position of an individual entrepreneur? What should the entrepreneur at the head of the business entity be called - director, founder, boss?

In accordance with Article 23 of the Civil Code, an entrepreneur engages in business activities without establishing a legal entity. He has the right to be called an entrepreneur from the moment of registration with the state tax authorities. His name, surname and patronymic are the identifier of the entrepreneur in the system of market relations. In all documentation, the registration certificate, his personal data is indicated. An individual entrepreneur does not have the right to assign any euphonious name to his company according to current legislation.

An individual entrepreneur is an employer and has the right to conclude employment contracts. Thus, he has the right to approve the position of director or manager in his business entity. The individual entrepreneur independently decides who exactly will occupy this position and what it will be called. But the position of director differs significantly between an individual entrepreneur as an individual and an enterprise as a legal entity. A legal entity, in accordance with Article 53 of the Civil Code, has civil rights and obligations exclusively through its executive bodies. They act according to constituent documents LLC, legislation and other legal acts. The director of the LLC, therefore, does not execute his personal will, but the will of the legal entity, that is, all of its founders. All issues related to the activities of a legal entity are resolved at a meeting of the founders, and after that they are assigned to the director for execution. An individual entrepreneur, while remaining essentially an individual, from the moment of registration still acquires a certain status that allows him to engage in individual entrepreneurship. He expresses his will regarding the conduct of business personally. If another individual is involved in this, that is, an employee is hired as a director or manager, the expression of the will of the individual entrepreneur will be legal on the basis of a power of attorney. That is, at the moment the power of attorney comes into force, the director or manager of the individual entrepreneur will make decisions regarding issues related to business activities, but with the consent of the individual entrepreneur himself.

And since individual entrepreneurship is not labor activity, for which wages are calculated and paid, then an individual entrepreneur cannot accrue it to himself, enter into an employment contract with himself and, accordingly, cannot be the director of his own business. According to article number 413 of the Civil Code, civil obligations cannot arise between a creditor and a debtor who are represented by one person.

Often when doing business, the question arises about what position an individual entrepreneur has permitted by law. In any other organization and enterprise, except state and municipal, an individual entrepreneur can hold any position, that is, be a hired employee receiving wages. And in his free time from his main job, he can engage in entrepreneurial business registered in his name. But in the individual enterprise itself, he is exclusively the employer and has the right to hire workers for any positions, including the position of director.

An individual entrepreneur makes an entry in the work book only hired worker, and without fail in accordance with Labor Code. He himself acts on the basis of a certificate of registration as an individual entrepreneur and does not make entries in the Labor Code. Entrepreneurial activity is included in the general seniority, the pension is issued on the basis of paid insurance contributions to the Pension Fund.

Their legality depends on what position an individual entrepreneur has indicated in the documentation. In contracts, for example, it is indicated “IP surname, first name, patronymic, valid on the basis of a certificate number such and such.” That is, in all documents regarding his business entity, he acts as an individual entrepreneur.

As noted above, since an individual entrepreneur is a natural person, he owns property that he uses for commercial purposes and property used for personal purposes. And although it is not actually divided, legally the property of an entrepreneur, used by him to make a profit, is separated for the purpose of calculating certain taxes. For example, in the professional tax deduction when calculating personal income tax, you can only include expenses associated with property used in business activities. The situation is the same with expenses under the simplified tax system and unified agricultural tax.

An individual entrepreneur must independently determine whether, for tax purposes, property should be classified as used in business activities or not. But in practice this can be quite difficult to do. For example, a car, the computer may well be used simultaneously both for personal purposes and for profit. And the costs of such property are a reason for constant disputes tax authorities with entrepreneurs. This is especially true for passenger cars and the costs associated with them.

Another problem related to the property of an individual entrepreneur is related to the Family Code. As you know, property acquired during marriage belongs to both spouses (unless otherwise provided by the marriage contract). For property used by a citizen for the purpose of carrying out entrepreneurial activities, there is no exception from the joint ownership regime.

Considering that possession, use and disposal common property carried out by mutual consent of the spouses, it should be recognized that a married entrepreneur is somewhat limited in the use of his property for business purposes. Yes, for disposal real estate and making transactions requiring notarization and (or) registration, an individual entrepreneur must obtain the notarized consent of the other spouse. Surprises can also await an entrepreneur during a divorce, because ex-spouse has the right to half of all property. And, for example, individual entrepreneur, presenter trading activities in a store, may lose half of the goods, half of the store’s area, etc.

It should be taken into account that spouses have the right to change the regime of joint ownership established by law (Article 34 of the Family Code) and establish a regime of joint, shared or separate ownership of certain types of property or all property in its entirety. Thus, a prenuptial agreement can be used to determine legal regime property of an individual entrepreneur, including in matters of his property liability.