Any future entrepreneur needs to decide which legal status is more advantageous to choose to start a business: LLC or individual entrepreneur.
How to choose a legal status
Advantages of the limited liability company format
a charter, memorandum of association, and authorized capital are required;
the maximum number vk database of founders in a company is 50 people;
there are no restrictions on types of activities – you can sell any product;
LLCs enjoy greater trust from counterparties;
income belongs to a legal entity, withdrawal of profits is allowed only as dividends and after payment of taxes;
the founders are not subject to financial liability in the event of liquidation or bankruptcy of the organization;
registering an LLC will cost more than registering an individual entrepreneur;
a mandatory requirement is full accounting and tax records;
fines are higher than for individual entrepreneurs;
The company can be sold.
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The nuances of opening an individual entrepreneur
there may be no more than five employees when working under a patent and one hundred employees when using other taxation systems;
limited number of activities available;
revenue is considered the property of the entrepreneur, but he bears personal property liability for all obligations;
tax reductions based on the amount of losses from previous periods are not permitted;
without registering as a VAT payer, the number of buyers is greatly reduced;
it is possible to refuse to make a seal, open a bank account, self-employed persons are allowed not to use online cash registers;
registration takes little time and is cheap;
simplified reporting is provided;
The business cannot be passed on by inheritance.
When choosing one of the forms, it is important to proceed from legal and organizational aspects. It is recommended to start with an individual entrepreneur - this way you will be able to protect yourself from a large number of difficulties that legal entities face.