What is an individual entrepreneur and why is it necessary to register?

What is an individual entrepreneur and why is it necessary to register?
What is an individual entrepreneur and why is it necessary to register?

Video: What is an individual entrepreneur and why is it necessary to register?

Video: What is an individual entrepreneur and why is it necessary to register?
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Individual entrepreneurship (IP) is one of the ways to generate income using your own capabilities and strengths. This is very relevant, for example, if you are a teacher who is capable of tutoring, giving individual or group lessons, or an artist, writer, photographer. For people who have land, there is an opportunity to grow vegetables, making a profit from the sale.

Basic concept

Let's understand what IP is. This is one form of small business. Individual entrepreneurs are individuals who are registered in a certain order established by law. They can carry out their private activities without forming a legal entity. Earlier in Russia, the equivalent concepts of PE (private entrepreneur), PBOYuL (without the formation of a legal entity) were used. Nowadays, these terms have been replaced by the concept of IP. What is an IP and why is it necessary to register it? This procedure is of great importance if you want to earn legally. Registration of an individual entrepreneur takes place at the place of residence of an individual. However, he can carry out the activity itself at other addresses.

What is IP
What is IP

Eatanother feature that not everyone knows about: the place of residence should not be used for activities that are related to any industrial production. The fact is that it is intended only for the residence of citizens. But this provision must be interpreted restrictively: it does not prohibit activities in these premises that do not contradict the rights of all persons living there, neighbors. For example, if your activity is related to intellectual work, for example, collecting data, writing scientific papers or drawing, programming, accounting, tutoring, auditing, consulting, then this can be done at the place of residence without breaking the law. In addition, as noted above, you can live at one address and conduct your business elsewhere.

When do entrepreneurial thoughts enter people?

IP in 2013
IP in 2013

Many begin to think about what an individual entrepreneur is only when they begin to be dissatisfied with something in the work of an ordinary employee in an enterprise. I want more income. At the beginning of independent work, you will have to work hard to achieve good profits. But if everything works out, then in the future a person will become independent. It will not be necessary to work for the owner, since in this case you yourself are your own boss. Legislation allows only adults to engage in entrepreneurship. An individual who operates as an individual entrepreneur must be registered under his own name. It is an independent subject of business and civil law, like anycommercial organization. After registration, a person is the owner of the labor force with the instruments of production, he can independently organize his work, manage its results. So what is an IP? This is an opportunity to become an independent worker within the law.

New in IP since 2013

IP activity
IP activity

From this year there is no need for individual entrepreneurs to submit the following reports to the tax authorities:

- Quarterly.

- Semiannual.

- For 9 months of work.

For individual entrepreneurs in 2013, there were other significant changes. The value of the insurance (fixed) contribution has increased. You can reduce the amount of the single tax by the amount of contributions under the insurance contract. New concepts have appeared: patent activity and the deflator coefficient. However, many entrepreneurs have decided to leave the business this year, as social contributions for them have almost doubled.

Registration and activity of an individual entrepreneur has a number of risks, but an opportunity is provided to start a business, which allows you to become independent!

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