Limited Liability Company (LLC) It is a private enterprise engaged in entrepreneurship, the income of which is distributed between its participants. Types of LLC are regulated by the relevant federal law, there is a list of those areas of the economy where company owners can work without problems, there are also forbidden industries. Below we will tell everyone about this in more detail.
Advantages of LLC
Despite the fact that the types of activities of the LLC are regulated and some of them need to be licensed, this type of entrepreneurial activity has many advantages. For example:
- authorized capital can be specified without restrictions;
- it can be presented both in monetary and in other valuable equivalent;
- simple registration and management;
- Convenient maintenance of accounting and tax documentation.
But before registering a legal entity, you need to choose its type of activity for OKVED. This moment needs to be approached very carefully, since the chosen area will be directly related to one or another type of reporting, as well as taxation.
Classification by classifier OKVED
Types of LLC activities have their own code number. To begin with, it is very important to determine the key focus of the future enterprise or business. Choose a code and indicate it first. The main activities of the company should be at the very beginning. Next come the secondary codes, which will no longer, unlike the key one, affect taxation and other economic processes.
When registering, the types of LLC - both primary and secondary - are registered on a special form, and the focus of activity should be present in an abridged version in the name of the company.
How to choose the focus of LLC?
Which species are best suited to field of activity your business? It is better to think over this issue collectively and not make a mistake. When you have decided and registered, all information is entered into the Charter of the company. The main activities of the LLC are those areas that, according to the classifier, are most consistent with its real work.
In the future, if you plan to change the profile, but do not want to register a new company, you can change the key focus in the papers.
If we talk about additional types of LLC, then they can be specified in unlimited quantities and selected on the basis of the principle of all potential areas that you would like to deal with in the future. Indeed, in practice, changing the type of work of a company is very difficult. And it is sometimes required to change the types of activities of an LLC, especially if the business has not begun to bring the expected profit, which is why its owners decide to reprofile.
Licensing
This issue is regulated by the relevant federal law. The license can be presented both temporarily and on an unlimited basis. When concluding the relevant agreement, it is provided that the types of LLC you have chosen do not belong to the prohibited ones in their activities and comply with all constitutional norms of the Russian Federation. They should also be spelled out in detail in the installation of the company and agreed with participants in the company who plan to start entrepreneurial activity.
Company name
According to the current legislation on state registration, a legal entity must have three types of names:
- indicating the legal form;
- abbreviated;
- branded, which may coincide with the previous one.
Additionally, the name may be in a foreign language or in the language of the peoples of the Russian Federation.
Earlier, when registering an LLC, a company name was checked for uniqueness, but now it is not. However, in order to use words such as “Russian” or “Moscow” in the title, you need to get special government or municipal permission.
There are no bans on the use of a company name, but note that if you use someone else’s, you may be sued provided that its owner has registered this name as its intellectual property.
Prohibited Business Areas
There are also types of LLC that cannot be opened. For example, it is forbidden to engage in the following types of business within the framework of such a legal form:
- weapons;
- finance and funds;
- aircraft and much more.
In Russia, all these areas are exclusively under state control, therefore private business in such sectors cannot be carried out.
It is worth adding that there are restrictions on entrepreneurship in the production and storage of chemicals, poisons, pyrotechnics and explosives. Also, LLCs cannot engage in the security business, lending, employment of citizens abroad, and natural resources issues. There are also severe restrictions on the pharmaceutical industry.
Insurance premiums
Why is it necessary to choose the main types of LLC as correctly as possible? They affect not only the amount of taxes and the particulars of filling out documents, but also the percentage of transfers to the insurance fund. The fact is that the potential danger of this or that type of activity is calculated for the employees performing it. The higher it is, the correspondingly there will be a greater harmfulness coefficient, therefore the insurance rate in terms of deductions will also be considerable. At the same time, the difference between the lower and upper bar ranges from 0.2 to 8 percent of profit.
Therefore, when you open an LLC and choose a key type of activity, focus on possible earnings in the area that is most relevant to you, calculate whether you can make regular contributions.
If you plan to engage in trade, consulting and other services, study the classifier and choose the type that is most suitable for them or the whole. Specify whether the purchase of a license to carry out activities of this kind will be required, and whether it is prohibited. If everything is done correctly, then you can easily register your LLC and will be able to get to work and hire employees.
