What is CHP, what is it?

The organization of the business many of its founders often wonder: what legal form to choose? In this article we will try to analyze what is CHP, what is LLC, what is their difference and what are the benefits.

What is LLC

Oh – that's the abbreviation for: ‘limited liability company”. This is the most common legal form of businesses today as emergency. What is PE and what is different from OOO, discussed below in this article. LTD – company that may be established by one or several persons.
In this case, the founders can be both physical and legal persons.
When you create a LLC, for its proper functioning, you will need to complete the following steps:

1. Define the name of the company.
2. To Determine the location – legal address.
3. Select the head – the sole Executive body.
4. Choose activities for the company.
5. To Prepare the documents for registration.
6. To Pay the share capital in any way.
7. Pass the state registration procedure.
8. Make prints and stamps.
9. Open a Bank account.
10. To Announce the opening of the enterprise to non-budgetary organizations.
11. Choose the mode of taxation.
12. To Employ workers.

The Number of employees in an LLC is not restricted. For persons working in such enterprise, subject to all the provisions of the applicable labor laws.

What is a FOP

State of emergency – the abbreviation: “entrepreneur”. Speaking about the incident, the value of which means a natural person, should submit a citizen of the Russian Federation, who wishes to engage in entrepreneurial activity and passed in the established procedure the state registration.

Today the notion of "private entrepreneur" as such anymore. It is therefore futile to seek an answer to the question of what is an emergency? At the legislative level, it was replaced by "Individual entrepreneur".
And yet, responding to a question about emergency – a private entrepreneur or a company, clearly the answer is the entrepreneur.
To get status of IP, you must perform the following steps:

1. To Determine the desirable types of activities.
2. To Prepare the registration documents. The address of the place of residence of the individual is listed as the address, IE.
3. Pass the state registration procedure.
4. For proper functioning need to obtain printing and opening a Bank account no.

SP can employ to itself any number of people. As well as, LLC, IP is required to keep employment records and to make all necessary payments, including the Pension Fund and the social insurance office. Workers FE apply to absolutely all types of guarantees established by the labour legislation.

The Order of registration of the company

To open the LLC, the registration authority must submit the following documents:

1. The Decision to establish LLC or minutes of the meeting of the founders (in case if there are several founders).
2. The Agreement on the establishment of OOO – if several shareholders.
3. The Charter company.
4. The registration Statement on form f 11001. It should be noted that the application of mandatory certified by a notary, paid the fees for notarial acts.
5. Letter of Guarantee from the owner of the premises where produced state registration or copies of documents of title.
6. To Pay the state duty in the amount of 4 thousand rubles and 400 rubles for the issuance of certified copies of the Charter.
7. If necessary, submit an application for transition to the simplified system of taxation.
8. A power of Attorney if the documents for registration will provide the other person. In this case it is issued on behalf of all the founders, who were assured their signature in the application for registration.

Within 5 working days, the relevant authority will give out the certificate on the state registration, the certificate of incorporation, copy of Charter, certificate of tax registration (or a reasoned refusal to register).

The Order of creation of the UI

To register Yourself IP will not be easy. To do this, you must do the following:

1. Choose activities, or NACE, for a small business.
2. To fill in the application form R 21001. The said application is allowed to fill in by hand and printed version. But we should remember that in the printed version it is impossible to correct, amend, or correct the information.
3. Since 2011, there is no need to certify this statement to the notary, if the future entrepreneur provides the documents for registration personally. If documents will be submitted through a representative or by mail, in this case, the package of documents to attach:

- a copy of passport IP;
- a notarized application for registration on form f 21001;
- power of attorney for the authorized person.

Note, that the finished documents from the tax might not always get a representative.

4. To prepare the statement for transition to the simplified system of taxation.

The Advantages and disadvantages of the company

Any form of business has a number of advantages and disadvantages. Some of them we find the:

1. Liability of LLC may be limited by the size of the share capital, for the founder – in the size of its contribution. The fines for businesses are quite large.
2. Sufficient anonymity of the company.
3. Litigation from OOO is always subject to consideration in Arbitration courts.
4. To set a number of restrictions regarding the order in cash. For example, in one transaction the cost of cash withdrawal is limited to 60 thousand rubles. OOO is obliged to comply with cash discipline to the proper statements.
5. OOO is obliged to open Bank accounts and report it to the tax authority.
6. The distribution of profits, after payment of all taxes and contributions, dividends received, the founders are obliged to pay personal income tax at the rate of 9%. The right to receive dividends does not occur more than once in a quarter.
7. Modern enterprises have developed a more trusting attitude towards the company, as to the form of business, as it involves more serious cash, a liability.

Advantages and Disadvantages of IP

Consider the pros and cons of IE:
1. When creating the PI physical person will incur fewer costs for payment of state fees (notary's fees, state duty for registration, payment of the share capital), rather than with the creation of OOO.
2. On its debt SP is responsible with all its assets – a physical person. The SP may be imposed and criminal liability. The size of the fines is much lower.
3. Litigation in the IP, in case of appeal of normative acts of bodies of state authorities, are subject to consideration in Arbitration courts. In other cases, disputes are to be settled in the courts of General jurisdiction.
4. SP can carry out the licensed activity in accordance with the requirements of the candidates. The exception is a ban on the sale of alcoholic beverages.
5. If SP opens account as natural person, there is no need to report it to the tax authority. In all other cases, communication is necessary.
6. Cash discipline is SP simplified.
7. Information about PI is available though, because break checks.
8. SP has the right to use the proceeds immediately after its receipt and does not pay her any taxes.
9. SP has a separate tax benefit, and the government often helps in the development of entrepreneurship, setting different types of grants.
Simple answer to the question, what is better to choose PE (SP) or LLC, is difficult to answer. In order to determine the form of running your own business, you need to weigh all the pros and cons specifically for yourself, as well as to calculate all the risks.