Quite often, some citizens have a question about how the state identifies individual entrepreneurs and in what legal field it places them. This is actually important information, since the algorithm of actions of small business representatives depends on it.
Is an IP a natural or legal person?
Those who are not sophisticated in legal matters related to business will definitely come to the need to understand this topic. And this will happen at the first attempt to start your own business.
So, if you look at the current legislation of the Russian Federation, you can easily establish the following fact: an individual entrepreneur is an individual who carries out its activities on the basis of mandatory registration. Establishment of a legal entity for IP is not a necessity. Neither circumstances nor the law require this.
But at the same time, there are a number of situations when faced with which, even after a legal educational program, the question still arises: "Is an IP an individual or legal entity?" Why this information is becoming increasingly relevant will be discussed below.
The hidden edges of the law
There are a number of legal aspects that many entrepreneurs face only after starting up their business and taking the first steps in the hard business of free activity.
Here is one such point. Despite the fact that the law defines an individual entrepreneur as an exclusively physical person, it also reads as follows: the provisions and rules that govern the activities of legal entities in general and commercial organizations in particular may be applicable to entrepreneurs. This means that in some situations to the question: “IP is physical. face or not? ”the answer will not be so clear.
Complicating the logical chain is the fact that sometimes the tax service makes demands on entrepreneurs on the basis of provisions that apply to commercial organizations. In some letters of the Ministry of Taxes and Duties addressed to representatives of small business, there is no such term as an IP. A natural reaction is the assumption that the legal status of individual entrepreneurs in the eyes of state representatives does not differ from that of legal entities.
Similar behavior sins and the Central Bank. For these reasons, after the topic was raised: “Is an individual entrepreneur an individual?”, You need to thoroughly study it and boldly remind the tax authorities that they are dealing with an individual entrepreneur.
Important Nuances
This block of information is needed in order to realize all the facets of the issue under consideration. When the differences between these two legal forms of activity are clear, it will be easier to protect their rights and take the right position in front of any state structures.
So, understanding that IP is a legal entity. face or not, it makes sense to pay attention to those moments of activity that both forms of doing business are very similar, which leads to confusion afterwards.
First of all, it's finance. A vivid example is the need to fill out a cash book, where all cash receipts and, consequently, their subsequent expenditure should be recorded.
Another unifying obligation is the submission of tax reporting. An interesting fact is that you need to take it for all income. For example, a private entrepreneur sold his apartment and received funds as an individual. So, you need to submit a declaration separately for the funds received from the sale.And then another one, as an IP. That's all so strict.
As for verification, they are carried out at the same level as legal entities. That is, any controlling organization can come to visit - from the Fire Inspection to the Committee for the Protection of Consumer Rights. After this, the question will inevitably arise: “Is an IP a legal entity?” But it is always worth remembering that some similarities between two such different forms of doing business are exactly the same elements of interaction with government bodies, and no more. The legal position of the IP is completely different.
Features of an individual
So, based on the fact that the law still defines an individual entrepreneur as a physical person. face, you need to build on just that.
You can start with the issue of using declared income. An entrepreneur has every right to dispose of these funds as he sees fit, and at any time. Moreover, such actions do not need to inform anyone. But commercial organizations (legal entities) cannot afford this. They have the right to withdraw income only in the form of dividends. Moreover, such operations can be performed only once every three months.
The next thing you need to pay attention to is bookkeeping. If tax reporting for IP is mandatory, then accounting is a matter of desire. An entrepreneur may not keep a record at all, let alone surrender anything. Commercial organizations do not have the opportunity to enjoy such freedom of action.
Another fact worthy of attention in the framework of the topic “Is an IP a natural or legal person?” Concerns opening a bank account for carrying out activities. This item is not mandatory in the case of an individual entrepreneur. In other words, an individual can only work with cash. Commercial organizations are deprived of such privileges.
What about print and fines?
In order for all representatives of small and medium-sized businesses to follow the rules established for them, there is a system of fines. And although both legal entities and individuals can, so to speak, run into such penalties, in the case of individual entrepreneurs, the amount of payments will be much less.
This means that the government makes significantly more stringent requirements to various commercial organizations. So the state registration of legal entities and individual entrepreneurs has different consequences, especially in the issue of fines.
As for the press, here individuals are again free from any obligations and can safely do without it. All you need to do business is a signature. But if the plans include cooperation with serious enough partners, it is better to get a print.
What you need to know about the status of an official
Initially, those citizens of the Russian Federation who carry out temporary or permanent activities on the basis of an employment contract fall into this category. And this applies only to military organizations, municipalities and state institutions.
And although at first glance the IP is unlikely to have anything to do with this category, in case of fixing administrative violations on its part, the entrepreneur can be held responsible as an official.
Loan issue
In some situations, information on whether an individual entrepreneur is able to issue loans to individuals becomes relevant. In this regard, it is worth noting that entrepreneurial activity is any activity that leads to profit, whether it is the sale of a particular product or the provision of services.
Thus, it may seem that such financial transactions are normal. But this whole logical chain breaks down on the law, which has the name "On the consumer loan." It prohibits those who have registered as IPs to carry out such activities (to issue loans).
Conclusion
So, having understood the question: “Is an individual entrepreneur or legal entity?”, One can safely say that entrepreneurs have nothing to do with commercial organizations. The consequence of this fact is both some advantages and certain limitations. Therefore, before choosing a form of doing business, it makes sense to soberly and competently evaluate the features of future activities.
