What fixed payments does IP and LLC have?

Fixed payments are obligatory payments made by individual entrepreneurs to state extra-budgetary funds in order to be able to provide themselves with health insurance and a pension.

IP and LLC are two legal forms of entrepreneurial activity. The difference lies in the responsibility borne by the individual entrepreneur and the owner (participant) of the company. Fixed payments are not provided for LLC, but are mandatory for individual entrepreneurs.

More recently, IP registration was considered simpler, less troublesome and less costly than creating an LLC. The issue became controversial when fixed payments were established for individual entrepreneurs. These payments must be paid by entrepreneurs to the Pension Fund and the Compulsory Health Insurance Fund.

Regardless of the amount of income received, the activity is carried out or not, the entrepreneur, as a law-abiding citizen, must pay contributions to these two instances.

It looks illogical from the point of view of a simple layman, but is understandable from the point of view of the letter of the law.

To the point

At the beginning of 2014, once again there were changes in fixed payments for individual entrepreneurs. Until that time, payments were, indeed, fixed, the same for all, and were set for a period of twelve months. When the amendments to the Law "On Insurance Contributions" became effective, a gradation appeared in the system of fixed payments for individual entrepreneurs:

- with an annual income of 300, 000 rubles. and less

- with an annual income of over 300, 000 rubles.

If the income does not exceed 300, 000 rubles, then the total amount of contributions to both funds for the year will be 20, 727 rubles. 53 kopecks

With an income of more than 300, 000 rubles. You must pay an additional 1% of this exceeding amount to the Pension Fund by April 1 of next year, but not more than 138627 rubles. 84 cop. In this case, the entrepreneur does not pay contributions for compulsory health insurance.

Fixed payments are calculated on the basis of the minimum wage set on January 1 of the current year.