Any business must be legalized. Legalization as a source of budgeting is needed not only by the state, but also by the entrepreneur himself, in order to have legal protection and an attractive image in the face of clients and counterparties.
An entrepreneur can conduct two types of activities - commercial and non-commercial. The main goal of doing business is to generate income. Non-profit activity has many purposes, the profit from the commission of which does not fall under the category of income.
Registration of commercial enterprises presupposes, first of all, interaction with tax authorities, pension funds and social services, payments to which are made from income.
There are several organizational and legal forms (OPF) of commercial enterprises, the registration of which will allow an entrepreneur to conduct a completely legal business and be protected at the legislative level.
These are individual entrepreneurship (IP), limited liability company (LLC), open and closed joint stock companies (OJSC, CJSC).
Individual entrepreneur
An individual entrepreneur is the most common and simplest OPF, which can be registered by any capable adult citizen of the Russian Federation. In exceptional cases stipulated by law, a teenager who has reached the age of sixteen can also register an individual entrepreneur. Registration of an individual entrepreneur takes place without forming a legal entity.
The advantages of an individual entrepreneur are simplified accounting, no need for a legal address. Registration of an individual entrepreneur does not require the Charter and the presence of the authorized capital.
The disadvantage of an individual entrepreneur is his liability to creditors with all his physical property.
Limited liability company
An LLC can be registered by one individual and a group of founders. To register an LLC, it is required to draw up a Charter, an authorized capital, which cannot be less than 10,000 rubles, and a legal address that cannot coincide with the registration address, but may not coincide with the address of the location of the actual production.
The members of the LLC are liable within their own share of the authorized capital, which is terminated with the liquidation of the enterprise.
Joint Stock Companies
For the registration of joint-stock companies, there are regulations on the amount of the authorized capital, which is divided between the participants of the joint-stock company by means of shares. The regulation also exists for the number of shareholders. In a CJSC the number of participants cannot exceed 50 people. Otherwise, it becomes necessary to change the type of closed company to an open joint-stock company or to reorganize into an LLC. Registration is similar to LLC, only the registration of JSC is supplemented by a clause on the issue of the primary block of shares.
Both LLC and JSC are registered with the formation of a legal entity and can be liquidated or reorganized in accordance with the law. With regard to individual entrepreneurs, only the termination of registration is possible, payments by the individual entrepreneur on debts are mandatory until they are fully paid off.
