Pension Fund

To begin with – sort out the differences. The main difference from the IP Ltd is a degree of responsibility to the creditors. First. An individual entrepreneur (FE) is responsible for its obligations to all its assets. Founders LLC is not responsible for any loss of his property company, and thus run the risk of only the authorized capital (minimum of 10 000 rubles), with the exception of proven in court in cases of willful failure or some other violations of law. For this reason, the registration company safer for the owner than the PI.

Second. IP as opposed to freely dispose of Company revenues and no duty to contribute revenue to the bank account and keep cash discipline. Founder of dividends may only be paid once a quarter, the distribution of profits after taxes will be required to pay the founders still tax personal income tax rate of 9%. PI after tax freely dispose of profits and additional taxes are not paid. Note that the IP is obliged to pay contributions to the Pension Fund, regardless of whether it is operating or not.

Third. To sell its stake in the company legally just, everything is done by negotiation in the share capital from seller to buyer business. Sell Business IP can only be in the form of property that, legally, not so easy. Also note the nuance. Register IP is only possible at the place of permanent residence (residence permit), but to operate an individual entrepreneur can be in any region. Ltd. is registered in the location (legal address). Can live in Moscow, and the registration company will be held in Kaliningrad. In addition, Russian law there are no restrictions on the number of LLC in which the same person may be a founder, you can be the founder of hundreds of firms, and PIs can be only one. It is also worth noting that since 2006, an individual entrepreneur shall be obliged to register all employees in the workbook. The number of hired personnel in PI is not restricted. Administrative responsibility for the individual entrepreneur, typically lower than for the company. For example, in the case of imposing fines for IP will be lower. As for the choice – it is yours. Everything depends on the goals and objectives of you and your business.