When planning to engage in private business, you need to decide what legal form the organization will have. Choosing the form of commercial activity so that it suits the business as much as possible is one of the most important stages. In order to do this, it is necessary to understand the professional literature and study a lot of information regarding the organizational and legal forms of various enterprises.
For example, you can be a private entrepreneur and operate on your own behalf, or you can represent the interests of a legal organization, acting as a co-owner or owner.
Considering the first case, it is necessary to register as a private entrepreneur. According to Ukrainian legislation - FOP or SPD. However, before making your choice in one of the parties, it is necessary to clarify the pros and cons of the chosen form.
FOP is an abbreviation that stands for "physical person - entrepreneur", in Russia - FLP (individual entrepreneur).
Pros
Registration of FOP is an easier option for completing documentation and requirements.
The benefits are:
- no requirements for authorized capital;
- registration procedure is short;
- produced at the place of permanent residence;
- seal and bank account are optional;
- bookkeeping system is very simple and does not require an accountant;
- The taxation system has been greatly simplified.
Opening conditions
If the purpose of opening such a form is the legalization of income, the acquisition of the ability to settle accounts with customers using a non-cash form of payment and cash out if necessary, then FOP is the best choice.
In order for this form to be optimal, a number of conditions must be met:
- work is carried out independently or the number of employees does not exceed 10 people;
- turnover is from 3 to 5 million UAH. per year (about 11 million rubles) or the 5th single tax group is used;
- with partners, contractors, employees and employees, payments are made by bank transfer;
- availability of VAT for customers;
- business is new and just starting to pick up pace.
Single tax
For small business entrepreneurs there is a single tax system. Simplified system - a special mechanism that allows you to levy taxes and fees, replacing the payment of certain taxes and certain fees for the payment of tax with accounting and reporting in a simplified form.
The simplified system is not allowed to be used by non-residents. If a person is registered as an entrepreneur, then he must be a resident of the country. In this case, the person hasthe right to apply the simplified taxation system on a general basis.
There are four groups of business entities, three of them are individual entrepreneurs. The fourth group applies to legal entities producing agricultural products.
Groups
FOP groups are diverse. For each, there are both simplifications that make life easier for entrepreneurs, and restrictions.
The first is the only group where PPO books (recorders of settlement transactions) are not required. The condition for being in this group is an income level not exceeding UAH 300,000. (about 650,000 rubles). You can engage in retail trade in the market or provide personal services. Counterparties are exclusively individuals.
Examples of services:
- services for the restoration, repair, restoration of furniture or its manufacture under an individual order;
- custom joinery or carpentry;
- metal customization;
- repair services for watches, musical instruments;
- repair services for personal items, hardware;
- services for the treatment of linen, washing, cleaning or dyeing textiles or furs;
- hairdressing services.
The second group is the most common and in demand. The tax rate for this group is fixed, paid from the minimum salary, and not from the total income. Reporting must be submitted once peryear. At the same time, the maximum level of income is UAH 1.5 million. per year (approximately 3.2 million rubles).
Those who are registered on this group can carry out activities related to the provision of services to the population and those who pay the UN.
Examples:
- Restaurant business. Sale of beer and table wine is allowed.
- Providing space for rent.
It is prohibited:
- Be an intermediary in the sale, evaluation, purchase, rental of real estate.
- Sell, produce, repair household and jewelry made of precious metals, precious stones, semi-precious stones.
- Provide services for legal entities on a common system.
The maximum allowable income for this group is UAH 1.5 million.
Third group. The tax rate for this group is 5% of income in the case when VAT is included in the single tax, 3% - for those who pay VAT. The maximum annual income is UAH 5 million.
Entrepreneurs of this group can engage in any type of activity except that which is prohibited for the unified system, as well as sell and produce goods, provide services to the public, provide services to all taxpayers and entrepreneurs.
Keeping cash registers is mandatory if the income has exceeded UAH 1 million since the beginning of the calendar year. (about 2.2 million rubles). If there is no such amount of income, then PPO is not necessary.
What group is chosen for the FOP depends entirely on the typeactivities and profits.
Cons
The disadvantage of FOP is what kind of responsibility will be imputed in case of accidents. The entrepreneur is responsible for the business and for all obligations with absolutely all his property. It is legally assumed that a small entrepreneur should not incur such losses and obligations that he cannot pay off without using his property. However, in reality, it often turns out that in order to open a business, entrepreneurs who are too confident in their success take on obligations that they cannot then fulfill. In this case, they are subject to legal liability, and often in court.
General tax system
Payments made by FOP on the common system:
- personal income tax;
- unified social contribution;
- VAT (Value Added Tax).
The general system is applied in the case when, along with the application that the registration of an individual as a business entity is required, an application was not submitted to use the simplified system.
Total income subject to tax is the proceeds received by the entrepreneur as a result of the activity.
Reporting
FOP pays taxes under a simplified system. Among the mandatory reporting, which is submitted as a result, are:
- Declaration on personal income taxes (this is a tax declaration "on property status and income"). Herserved once a year within forty calendar days from the start of the new year.
- For themselves FLPs report on ERUs once a year until April 1 of the year following the reporting year.
- If a registered FOP is a VAT payer, then it is necessary to submit a tax return on the issue of VAT every month. Deadline - within twenty calendar days after the reporting month. Declaration form approved.
- Registers of received and issued invoices are being submitted to the tax service. Done electronically.
- If PPO is used, then every month, no later than the 15th day of the month following the reporting one, it is necessary to submit a report on the use of PPO, as well as RC.
Calculation of ERUs
ESV (single social contribution for compulsory state social insurance) is calculated according to a certain algorithm.
ESV for FOP:
- If the income for the month is 0 in total or there were losses incurred by the entrepreneur, then the ERU is 0.
- If monthly net income is between 0 and the minimum wage, then the ERU is equal to the minimum insurance payment. The calculation is made by multiplying the minimum monthly wage by 34.7%.
- If the total monthly income is from the minimum wage to the maximum accrual base, then the ERU is 34.7% of net income;
- If net income is more than the maximum accrual base, then ERUs will be equal to 34.7% ofthe maximum value of the base.
Register
In order to register a business, it is necessary to perform a number of procedures, mandatory activities. To register a FOP on a common system, you need:
- Submit documents to the state registrar.
- In the tax office, write a statement that the necessary taxation system has been chosen.
- After the registration of the single tax payer is completed, it is necessary to submit a special request, in which there will be an extract from the register of payers.
- Pick up the finished statement.
- Register income and expense books with the tax office.
For registration you need to bring with you:
- copies of identification code and passport;
- declaration that the single taxation form has been chosen;
- pre-received extract from the unified state register;
- book of income and expenses;
- application written in the name of the head of the tax or application form 5-OPP.
In order to carry out the registration procedure, it is not necessary to come to the tax authority on your own. You can use the services of official Internet portals and submit all documents electronically. Then, after the deadline for processing documents, you need to pick up the originals.
Documentation
Due to the fact that the reporting submitted by the business owner is standard, it must be drawn up in accordance with the requirements. It is most convenient to download the FOP reporting form on specialized Internet resources. Beforewhen preparing reports, it is important to make sure that the form of the report and the form comply with the latest changes in legislation, and are also suitable for a particular form of taxation.
