What types of IE are most common in Russia and why

IP is today the most popular form of business organization, which is associated with the relatively ease of tax and management accounting. Another reason is a more favorable tax regime created for individual entrepreneurs.

Most start-up entrepreneurs, choosing between opening an IP and LLC, prefer the first form. The main reasons are:

- simpler registration procedure;

- lack of share capital;

- More loyal fines for violations of the law;

- less reporting, which must be submitted to the tax authorities;

- availability of benefits for insurance premiums for employees of individual entrepreneurs.

What types of IP in Russia can be distinguished

All entrepreneurs can be divided according to a number of criteria:

1. By size (turnover):

- large business (with revenues of 1.5 billion rubles per year);

- medium-sized business (with revenue from 75 million p.);

- small business (with revenue from 1.5 million p.);

- micro-business (with revenue of up to 1.5 million rubles).

2. According to the applicable tax regime:

- IP on the simplified tax system;

- IP on OSNO;

- IP on UTII and PSN.

3. By type of activity:

- Individual entrepreneurs engaged in retail trade;

- IE providing services to the population;

- IE, manufacturing goods, etc.

The most popular types of IP in terms of turnover

Most of the IP relates to small and micro-business, with a turnover of up to 75 million rubles. in year. However, as of the beginning of 2014, a significant number of such entrepreneurs have closed. This was due to an increase in insurance premiums in the FIU to almost 36 thousand rubles. For many individual entrepreneurs whose incomes often did not exceed 100 thousand rubles. per year, this amount was unbearable.

Statistics of the Federal Tax Service indicate that in the first half of 2013, more than 500 thousand IPs closed

Many entrepreneurs initially register IPs, and later, when the business increases its turnover, they are reorganized into LLCs.

The main reasons are that IP is more difficult to expand and develop a business. Many counterparties and credit organizations are distrustful of entrepreneurs and do not want to work with them.

The most popular types of IP in terms of tax regime

Most IEs use UTII, as well as USN.

UTII and STS - the most loyal tax regimes. When UTII really received income does not matter, taxpayers pay tax in a fixed amount based on the number of employees or the size of the sales area. The value of the patent also does not depend on the actual profit and is determined by the type of activity.

USN - a special tax regime that is more profitable than OSNO. It replaces the main types of taxes (for profit, VAT, personal income tax) with a single one. Its rate is 6% of all income or 15% of the difference between income and expenses. Also, this mode is distinguished by simpler accounting.

OSNO IP is rarely used. As a rule, it is used on condition that the majority of its business partners are located at OSNO.