PI or LLC: what to choose

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2020-07-03 00:45:08

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Often, having decided to organize their own business, the entrepreneur faces a difficult choice. On the one hand, it can take shape as an individual entrepreneur, on the other - to choose a more presentable form of organization like a LLC or JSC. Some newcomers to the business do not really know what the differences between these organizational forms.

Before you choose a PI or LLC, it is necessary to consider all the pros and cons of these organizations and understand what is different from the OOO UI. IP - the simplest form of doing business. The status of the SP can be obtained with minimal cost. When an individual business does not require share capital.

Beginners often ask the question: LLC or LLC - which is better? In fact, it is impossible to say that one form is better than another. Just each of them has advantages and disadvantages.

PI as a simple form of business, also has disadvantages. For example, in the case of debt, the entrepreneur could lose all his property. The calculation is even apartment and a car that don't belong to the firm direct relationship. While SP may be registered only by place of residence and to conduct business throughout Russia. Choosing a PI or LLC to open, it is necessary to remember that OOO (and company) a more sophisticated reporting system. The limited liability company is subject to high taxes. Such organizations should be required to keep tax records and provide it as needed.

However, in some cases, the organization OOO or ZAO is required. It is known that not all of the seriously individual entrepreneurs. OOO looks more upmarket and presentable. The entrepreneur who designed the UI has a print format "IP Ivanov AA". This is the official name of his organization. If you plan to create large-scale production, such print will look ridiculous. Wondering to choose a PI or LLC, it should focus on how significant will it be for doing business.

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For Example, for small shops where it is implemented in small retail, makes no difference. But for those organizations that have to cooperate with other companies, it can be very critical. If a firm is created for sale, it is better to not even choose a PI or LLC, and more serious company. Of course. the cost of registration of JSC is much higher. So, for the organization entrepreneur need to spend 800 rubles for OOO - 4 thousand, and for ZAO - 24 thousand rubles. But at the same time organization CJSC is much easier to apply. Entrepreneur to sell the firm, it is difficult, because it is completely decorated by the owner.

OOO is a medium variant between the unpresentable SP and expensive company. In addition, JSC is easier to attract shareholders and investors, and for entrepreneurs or LLC is a very difficult task. Most of the really large organizations have a form of. This allows them the freedom to issue shares and to attract serious capital. ZAO may have a limited number of shareholders.

If the business is not for sale and no plans for raising outside capital, you can make IP. This will allow to carry out activities in the country will facilitate reporting, but will not create the desired company image. This form is very attractive for retailers. It does not require registration of branches and report for equipment in the workplace. While for a report for the equipment required. Opening a new office, the company is obliged to notify government agencies. And for OOO, and for entrepreneurs there are as General system of taxation and simplified. Therefore, to worry about the fact that when OOO will not work to issue a "simplified tax system", not worth it. It is more important to decide whether the design of the OOO those cost reporting will be entrepreneur. 


Article in other languages:

AR: https://www.tostpost.com/ar/business/22973-pi-or-llc-what-to-choose.html

BE: https://www.tostpost.com/be/b-znes/40667-p-c-taa-shto-vybrac.html

DE: https://www.tostpost.com/de/business/40221-einzelunternehmen-oder-die-gmbh-was-soll-man-w-hlen.html

HI: https://www.tostpost.com/hi/business/24580-llc.html

KK: https://www.tostpost.com/kk/biznes/41039-zhk-nemese-zhsh-b-l-ta-dau.html

PL: https://www.tostpost.com/pl/biznes/42870-niesprawny-lub-sp-z-o-o-co-wybra.html

PT: https://www.tostpost.com/pt/neg-cios/42525-ip-ou-llc-o-que-escolher.html

TR: https://www.tostpost.com/tr/business/37703-ip-veya-llc-ne-se-mek-i-in.html

UK: https://www.tostpost.com/uk/b-znes/41547-p-abo-tov-scho-vibrati.html

ZH: https://www.tostpost.com/zh/business/29256-pi.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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