What is better LLC or SP?

Every person who wants to start doing business faces a choice of the form of ownership of the future enterprise, and decides that the best is an LLC or an IP. Both types of enterprises have their advantages and disadvantages.

In this article we will look at all the stages of the work of enterprises, all the benefits and disadvantages of PI and LLC.

  1. Opening of the enterprise. You draw up a package of documents, and carry it to the tax office. In this package is your receipt of payment of state duty for opening a business. For the IP you will give 800 rubles, for the LLC - 4000 rubles. If you do not want to go through the instances to open an enterprise, then you hire a lawyer for these purposes. His services here also vary in price, you will give 2000 for an IP, almost 8000 for an LLC. If you open an LLC, you will also have to register the Company's Charter. Keep this in mind when deciding what is better LLC or SP.
  2. Before filing the documents, you will have to go to the bank and open an account on which the authorized capital must be at least 10 thousand rubles. A certificate of this must be attached to the documents for opening an LLC.When opening the IP, no Charter and capital is required. Earlier in the mandatory documentation at the opening of the LLC was also the Memorandum of Association. At the moment it is abolished, but in many firms it is still available. What determines the charter? It indicates the composition of the founders, their passport details, addresses, telephone numbers, and shares in the capital. These percentages in percentage terms will be needed later, when the founders begin to divide property or dividends.
  3. At the origins of a company can stand several people, one entrepreneur opens the SP Imagine a situation that two people decided to do business together. In the case of an LLC, they have a clear understanding of who owns what. If they created an IP, and used the data of one of them, then when parting it is impossible to legally prove the rights to the property of the second. If the relationship is good, then everything will be honest, and if not - the second person will be left with nothing. This is the decisive factor in the dispute, which is better LLC or SP.
  4. All profits received in the IP, can be immediately spent by the owners. Profit from the activities of LLC can not be spent on yourself. It can only be spent on the purchase of raw materials, the salary of workers,production development. At the end of the year, the meeting of founders may decide to pay dividends to the participants of LLC. It is also a way to receive real money, but not in a limited liability company, but in a closed joint-stock company (joint-stock company).
  5. If the company incurs losses and it is recognized as insolvent (bankrupt), then LLC can easily get out of this story, going through a bankruptcy procedure, which allows you to save the company. If the individual entrepreneur goes bankrupt, the bailiffs seize any property of the individual entrepreneur and pay off their debts from the enterprise’s activities. But the fines in the event of administrative liability are much lower for individual entrepreneurs, for LLC they are sometimes ten times more.
  6. When registering, the LLC should indicate its address - the location of the non-residential premises rented by it. A PI is enough to specify the address of the entrepreneur. Ltd. is registered at the location (where it works), and the PI - at the place of residence of the owner of the business.
  7. Businesses are starting to work. The question arises from the SP or LLC, what is best to do to keep competent records. In the PI can be one person and employee, and the owner. There is only a book of expenses and income.In LLC there must be a general director and an accountant. They should receive a salary in accordance with the staffing table. Ltd. submits to tax large statements. Both IE and LLC are required in accordance with the tax code are required to keep the primary accounting documents for 4 years.
  8. If you want to receive large state orders, then you need an LLC, large enterprises do not work with IP-Schnick.
  9. Choosing the best IP or LLC, do not forget that by opening the IP, you will know about this step of yours, because you will not hide your last name. In the case of an LLC, only lawyers and a tax specialist will know it. This is a small factor, but for some it is important.

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