What is a state of emergency, what is an LLC?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

When organizing their business, many of its founders often ask themselves the question: what legal form to choose? In this article, we will try to analyze what is a state of emergency, what is an LLC, what is their difference and what are the advantages.

What is OOO

LLC is an abbreviation for "Limited Liability Company". This is the most common organizational and legal form of enterprises today, as is the state of emergency. What is a state of emergency and how it differs from LLC, we will consider later in this article. An LLC is a company that can be founded by one or more people.

In this case, the founders can be not only individuals, but also legal entities. When creating an LLC, for its full functioning, it will be necessary to perform the following steps:

1. Define the company name.
2. Find location - legal address.
3. Elect the head - the sole executive body.
4. Select activities for the enterprise.
5. Prepare documents for registration.
6. Pay the share capital by any available method.
7. Pass the state registration procedure.
8. Make seal and stamps.
9. Open an account inbank.
10. Report the opening of the enterprise to non-budgetary organizations.
11. Select tax regime.
12. Employ workers.

The number of employees in an LLC is not limited in any way. All provisions of the current labor legislation apply to persons working in such an enterprise.

What is an emergency

PE is an abbreviation for "Private Entrepreneur". Speaking of an emergency, the meaning of which implies an individual, one should represent a citizen of the Russian Federation who has expressed a desire to engage in entrepreneurial activity and has passed state registration in the prescribed manner.

Today, the concept of "private entrepreneur" as such no longer exists. Therefore, it is useless to look for an answer to the question of what is an emergency? At the legislative level, it was replaced by "Individual Entrepreneur".

And yet, answering the question of whether the PE is a private entrepreneur or an enterprise, one can definitely answer that this is an entrepreneur. In order to to obtain IP status, you must perform the following steps:

1. Determine your desired activities.
2. Prepare registration documents. The address of the place of residence of an individual will be indicated as the IP address.
3. Pass the state registration procedure.
4. For full-fledged functioning, there is no need to obtain a seal and open a current account.

IP can employ any number of people. Same waylike an LLC, an individual entrepreneur is obliged to keep work books and make all necessary contributions, including to the Pension Fund and the social insurance department. Absolutely all types of guarantees established by labor legislation apply to IP employees.

Procedure for registering an LLC

In order to open an LLC, the following list of documents must be submitted to the registration authority:

1. Decision to establish an LLC or minutes of the meeting of founders (if there are several founders).
2. Agreement on the establishment of an LLC - if there are several founders.
3. Charter of LLC.
4. Application for registration in the form P 11001. It should be noted that the specified application must be certified by a notary, a fee for notarial acts is paid.
5. Letter of guarantee from the owner of the premises where state registration is made, or copies of title documents.
6. Pay a state fee of 4,000 rubles and 400 rubles for issuing a certified copy of the Charter.
7. If necessary, submit an application for the transition to a simplified taxation system.
8. Power of attorney, if another person will provide documents for registration. In this case, it is issued on behalf of all the founders who certified their signature in the registration application.

Within 5 working days, the relevant body will issue a certificate of state registration, an extract from the Unified State Register of Legal Entities, a copy of the Charter, a certificate of registrationfor tax accounting (or a reasoned refusal to register an LLC).

Procedure for creating IP

It will not be difficult to register an individual entrepreneur on your own. To do this, you must perform the following actions:

1. Select activities, or OKVED, for small businesses.
2. Fill out the application on your own in the form P 21001. The specified application can be filled out both by hand and in printed form. But it should be remembered that it is impossible to make corrections, amendments or correct information in the printed version.
3. Since 2011, there is no need to certify the specified application with a notary if the future individual entrepreneur provides documents for registration personally. If the documents will be submitted through a representative or by sending by mail, then in this case it is necessary to attach to the package of documents:

- a copy of the IP passport;

- a notarized application for registration in the form P 21001;- a power of attorney for an authorized person.

It should be noted that a representative cannot always receive ready-made documents from the tax office.

4. Prepare an application for the transition to a simplified taxation system.

Advantages and disadvantages of OOO

Any form of doing business has a number of advantages and disadvantages. We will find some of them at OOO:

1. Responsibility for an LLC may be limited by the amount of the authorized capital, for the founder - by the amount of his contribution. The amount of fines for enterprises is quite large.
2. Sufficient anonymity of LLC members.
3. Judicial disputes in an LLC are always subject to arbitration.
4. There are a number of restrictions on the disposal of cash for an LLC. For example, for one transaction, the cost of receiving cash is limited to 60 thousand rubles. LLC is obliged to observe cash discipline and maintain appropriate reporting.
5. LLC is obliged to open bank accounts and report it to the tax authority.
6. When distributing profits, after paying all taxes and contributions, the founders are required to pay personal income tax in the amount of 9% from the received dividends. The right to receive dividends arises no more than once a quarter.
7. Modern enterprises have developed a more trusting attitude towards LLC as a form of business, since this form of organization involves a more serious cash, financial responsibility.

Disadvantages and advantages of IP

Consider the pros and cons of IP:

1. When creating an IP, an individual will incur less costs for paying state fees (payment to a notary, state registration fee, payment of authorized capital) than when creating an LLC.

2. An individual entrepreneur is liable for his debts with all his property - as an individual. Individuals may also be subject to criminal liability. At the same time, the fines are much lower.

3. Litigation at an individual entrepreneur, in the event of an appeal against the regulations of state bodies, is subject to consideration in the Arbitration Courts. In other cases, disputes are submitted topermission to the courts of general jurisdiction.

4. An individual entrepreneur can carry out licensed activities in accordance with the requirements for candidates. The exception is the ban on the sale of alcoholic products.

5. If an individual entrepreneur opens an account as an individual, there is no need to report this to the tax authority. In all other cases, the message is required.

6. Cash discipline for individual entrepreneurs has been simplified.

7. Information about individual entrepreneurs is available, if only because they break through on checks.

8. An individual entrepreneur has the right to use the proceeds immediately after receiving it and does not pay any taxes on it.

9. Separate tax benefits are established for individual entrepreneurs, and the state very often helps in the development of entrepreneurship by establishing various types of subsidies. In order to decide on the form of running your own business, you need to weigh all the possible pros and cons specifically for yourself, as well as calculate all the associated risks.