Entrepreneur - a natural or legal person? Whether the PI legal entity?

Nowadays everybody knows the abbreviation IE - individual entrepreneur. But not everyone sees it the legal status of this IP. Frequently asked question: "entrepreneur - a natural or legal person?". Try to understand.

Who can do business?

By law, every commercial activity can be engaged with a confirmation of their own legal status acts, respectively. Known for entrepreneurial activities is one of its kind, aimed at making a profit. In Russia she can deal with legal entities and individuals.

As you know, forms of legal entities - state (and municipal) enterprises and commercial organizations. Another category, which allowed this very commercial activity, - individual entrepreneurs. In the Civil code in black and white written: "the Individual entrepreneur (IE) carries out its activity without formation of legal entity (legal entity)". But why in this case, it is more often heard the question: "entrepreneur - a natural or legal person?". Is our gross ignorance of the law?

About the problems and the mess

Turns out, not so easy. The cause of this doubt is that the same GC after determining the individual entrepreneur almost immediately reported that his activities subject to the same regulations and rules that regulates the activities of legal entities. Often the tax authorities impose on the entrepreneurs requirements similar to the requirements for commercial organizations. So there is confusion, in which they themselves were entrepreneurs, and regulatory authorities who are accountable to those confused at the numerous types and forms of reporting required from legal entities and entrepreneurs.

To Defend their rights in tax inspection of an individual entrepreneur by a long account of complaints and litigation. Some confusion prevails in the activities of banks related to IP. Not all banks clearly understand: entrepreneur - a natural or legal person? What instructions are applicable to entrepreneurs? Because of this, the entrepreneur have to create mountains of unnecessary reports constantly to assert their rights and try to change the Bank more loyal.

Compare SP and Yul

Maybe, though, the PI is a legal entity? Let's see what it brings individual entrepreneurs legal entities. Mainly, it is financial discipline. In our days, the sole proprietorship involves the obligation to keep a cash book with clear indication of income and expenditure of funds similar entities. They are obliged to submit a tax reporting. If a citizen registered as an individual entrepreneur receives income as a natural person (for example, from the rental or sale of housing), he will have to file two returns - one as a private individual, the other as SP, indicating the income from business activities.

The Tax on exactly the same checks the IP, as legal entities. the same applies to other regulatory authorities. An individual entrepreneur shall report to the labor and fire inspectorates, the Committee on consumer protection, and numerous other instances.

About wage labor

A private entrepreneur has the right to attract employees, make entries in the employment record. Working citizens does not matter, is SP legal entity or not. The civil code of the Russian Federation declares for all workers equal rights in the labour law regardless of the organizational form of the employer. To respect the rights of employees of the SP shall enter into a formal employment contract, to pay contributions to all extra-budgetary funds and to pay taxes for their employees.

By the way, SP has the right to choose the system of taxation, the most beneficial is that also unites him with the legal entity.

Compare individual entrepreneurs and natural persons

And is there any difference of IP from a legal entity? There is not even one. Common individual entrepreneur physical person is also many. In particular, all income SP can use at their own discretion and at any time, to anyone without accounting. As you know, in a commercial organization income are paid only once a quarter in the form of dividends. An important issue of IP, without any doubt, enjoys much more freedom compared to Yul.

From a legal point of view, sole proprietorshipdoes not oblige him to keep records and mandatory to open business Bank account. This entrepreneur can run the calculation in cash (of course, observing all rules of law). Although in practice in our days is practically nonexistent.

About the fines and printing

Another important difference relates to the fines that will inevitably occur because of errors in the conduct of official paperwork business activities. Fines for such violations, voluntary or involuntary, are very solid. Penalties for legal persons more than persons physical, to which this issue refers to PI.

As any individual entrepreneur is not obliged to have a seal, unlike the organization. By law to certify documents it is enough signatures. But it should be noted that, in practice, most partners individual entrepreneurs wary of this form of registration of treaties. The majority of entrepreneurs sooner or later starts their own printing. Thus, this difference can be considered rather arbitrary.

Other details

More recently, the trade in alcoholic drinks can only lead a legal entity, so many entrepreneurs had to register the LLC or other forms of legal entities. Despite the right to have employees, the owner must personally drive your own business and all documents must have its own signature. Other person has the right to sign any documents for sole proprietors only by proxy. Thus, the position of Director or General Director in the staff of IP is an absolute fiction, because under the law, these persons have the right to sign critical documents without a warrant.

The Entrepreneur retains his status in the case of formal termination of the activity. Thus, he must constantly pay contributions to the pension Fund (Pension Fund) irrespective of income, whereas a legal entity in the absence of activity and income has the right to fire the entire staff or sent to unpaid leave (and not pay any contributions).

So, UN - natural or legal person?

From all of the above it becomes clear that all controversial aspects of our legislation, an individual entrepreneur - all natural persons and not legal entities as outlined in the Civil code, but in its activities, this person is obliged to accept most of the regulations and requirements regulating the activities of the organizations, unless there is direct evidence of exceptions to the rule for PI.