An IP is considered a legal entity or an individual. Legal status of the entrepreneur: Is the individual entrepreneur an individual or a legal entity? A legal or natural person is an individual entrepreneur

The emergence of this question is connected with the dual interpretation of the above concepts. People may be confused about how an individual entrepreneur, being an individual, enjoys the rights and performs the duties of a legal entity. In this article, we will understand the physical or legal entity is IP, and we will clearly distinguish between these concepts.

What is IP

Article 11 The Tax Code gives the concept of the term individual entrepreneurs. These include individuals who are registered in the prescribed manner and carry out entrepreneurial activities without forming a legal entity. Already in this normative legal act a clear answer is given to question asked. It is also confirmed by the following rules.

Article 23 of the Civil Code of the Russian Federation practically duplicates this provision. A clear distinction is also made in the following definitions specified in the law “On state registration... " dated 08.08.2001.

That is, for the legislation of the Russian Federation there are no problems with the distinction between these concepts. Let's try further to understand all the subtleties and nuances.

The fact that an individual is engaged in entrepreneurial activity is evidenced by the following:

A person carries out a certain type of activity for profit (exclusively for himself).
Property is produced and acquired also for the purpose of generating income.
Accounting for business transactions. To do this, under any taxation regime that the individual entrepreneur has chosen, he keeps a book of income and expenses. It contains records in chronological order and information about primary documents confirming transactions.
Established contacts with suppliers, buyers and other contractors.
The activity is carried out at the risk of the businessman, and he also bears any responsibility personally and with all his property.

An interesting rule is the one that establishes the possibility of applying the norms of legislation that regulate legal relations related to the activities of legal entities to entrepreneurial activity individuals. But certain conditions are provided for here: otherwise should not follow from laws, regulations or the very essence of legal relations. It is this provision, enshrined in the Civil Code of the Russian Federation, that raises questions.

We also note that individual entrepreneur and individual- this is a specific person who is endowed with the necessary amount of legal capacity and capacity.

The legal capacity of the subject is the ability to have rights and bear obligations. According to the norms of the Civil Code, citizens can both independently engage in entrepreneurial activities and create legal entities. This list also includes the ability to make transactions within the law, to have property and non-property rights, and more.

Legal capacity is the ability to manage rights and obligations, which is acquired from the moment of majority, i.e. from the age of 18. But the legislation also provides for cases in which legal capacity may arise at the age of 16.

IP acquires its status from the moment of state registration.

To understand an individual entrepreneur is an individual or legal entity, it is necessary to analyze what is common and different between these terms.

Common for IP with physical. faces

Individuals- These are citizens of the Russian Federation, foreign citizens and stateless persons. But in order for them to become subjects of economic legal relations, they must have a sufficient amount of legal capacity and legal capacity. For legal entities, this is not required, just state registration is enough.

An individual may carry out one of the following activities:

Work under an employment contract.
Provide services under a civil law contract.
Be a private, self-employed person. This activity is similar to entrepreneurial, but differs in its social orientation (lawyers, notaries, private security guards, private detectives).
Individual entrepreneurs.

What an individual entrepreneur and an individual have in common is as follows:

These two terms are equated with each other by the norms of the legislation.
This is a specific person who has a surname, name, patronymic, identification number.
They have a certain place of residence where they live and are registered as an individual entrepreneur.
Endowed with the necessary amount of law and legal capacity.
A business entity registered as an individual entrepreneur can act both as an entrepreneur and as a citizen. in Russia This is not prohibited, but expressly provided for by law.
They have the right to conduct various business operations, conclude contracts and make transactions.
They may also be in economic relations with legal entities and perform legally significant actions on their own behalf.
In the event of debts, they are liable with all their property, except for that which, according to the law, cannot be levied. By decision arbitration court a citizen who is not able to satisfy the requirements for monetary obligations may be declared bankrupt.

In order to avoid all kinds of risks in the implementation and conduct of business, an individual entrepreneur needs to find out all the nuances for himself even before registration. In particular, what type of activity will be chosen, whether it is subject to licensing, what method of taxation will be used, whether settlement accounts will be opened in banks, etc. These factors also influence the success of doing business.

Common for individual entrepreneurs and legal entities. persons

According to the legislation of the Russian Federation, a legal entity is:

organization (LLC, CJSC, etc.)
which has separate property (is on the balance sheet and is used in work)
for obligations can be responsible only within the limits of this above property (personal is not included here)
can enjoy all the rights and obligations (conclude transactions, pay taxes)
may act as a plaintiff and a defendant in litigation.

To understand what common for an individual entrepreneur and a legal entity, it is necessary to clearly understand, first of all, what are their differences.

A legal entity is an organization, an individual entrepreneur is a specific person. Those. in the latter case, it is a real-life subject, and in the first case, it is an organized society (which, as it appeared, may disappear in one moment).
Registration of an individual entrepreneur is carried out at the place of residence, and a legal entity - at the legal address.
It is characterized by organizational unity, which means its own management system. An individual entrepreneur carries out its activities independently, but can also act as an employer when using hired employees.
Ownership and liability. This term refers to the property that the organization has separately, and the founders or members of the organization have separate property. And these concepts must be distinguished and not confused. Since the organization bears property liability only within the amount (property) of the authorized capital, and the individual entrepreneur is liable for all his obligations own property. This is considered the most important difference.
The presence of its own name, in contrast to the individual entrepreneur, which is registered only under the full name;
A legal entity is required to have a current account and its own seal. For an individual, this obligation is voluntary and recommendatory.
The presence of a charter, which is a constituent document, is another necessary condition for the activities of legal entities.
Organizations can carry out any type of activity in any area, there are restrictions for businessmen.

The general is as follows:

They are created solely for entrepreneurial activities and are intended to make a profit.
Personal property and non-property rights are exercised on their own behalf.
In order to become a full participant in economic legal relations, it is necessary to carry out state registration with the relevant authorities.
Tax systems such as the simplified taxation system and the single tax on imputed income may be the same.
The recruitment process is the same. Everyone is recorded in work book. For employees, the necessary deductions are made in Pension Fund and withhold personal income tax.
They may have a checking account. Although, as mentioned above, for organizations this is an obligation, but for individual entrepreneurs it is not. For banks, an IP is a legal entity in the implementation of non-cash transactions. That is, look for tariffs for various services in the sections intended for organizations.
In court, they can act as a plaintiff and a defendant.

Status of an individual entrepreneur, namely the physical is it a person or a legal entity. a person must be understood even before state registration is carried out. Since in the process of doing business you will understand all the pros and cons, that is, all the advantages can be used in your activities.

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Entity is an organization, firm, company registered in accordance with the procedure established by law, which owns, manages or operational management separate property and is liable for its obligations with this property, may, on its own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and defendant in court.

Mandatory attributes of a legal entity

Thus, a legal entity registered in Russia must have four features:

presence of organizational unity. A sign of organizational unity is the presence of constituent documents in a legal entity, which reflect the system of management bodies and the relevant divisions for the relevant functions, enshrined in the charter of the legal entity. Bodies of a legal entity can be sole (director, president, chairman of the board) and collective ( general meeting, board, ), and their role is to form the will of the legal entity and to express it outside;

possession of separate property. Property isolation is the presence of such an attribute as the authorized capital of a legal entity, an independent balance sheet. The external expression of this independence is also the presence of a bank account in the company;

ability to bear independent property responsibility. Every firm that is a legal entity is responsible for the results of its economic activity. She is liable for her debts with her own property. This excludes the liability of a legal entity for the debts of its members or founders. In turn, neither its participants nor the founders are liable with their property for the debts of a legal entity. However, in cases prescribed by law or founding documents, founders and participants of a legal entity may bear subsidiary (additional) property liability for its obligations;

the opportunity to speak in civil circulation on your own behalf, to be a plaintiff and a defendant in court. A legal entity is an independent participant in civil circulation, it is capable of acquiring and exercising rights and obligations on its own behalf. Therefore, one of the signs of a legal entity is its performance on its own behalf in civil circulation, as well as in court. A legal entity acts in civil circulation, as well as in court under its own name, which individualizes it, makes it a legal person. The name of a legal entity must indicate its organizational and legal form, as well as its own individual name.

Commercial and non-profit organizations

Legal entities, depending on the main purpose of their activities, are divided into commercial and non-profit organizations.

A commercial organization has as the main goal of its activity the extraction of profit, and the profit received is distributed among its participants.

To achieve its main goal, a commercial organization is engaged in entrepreneurial activities.

A non-profit organization cannot have profit making as its main goal.

A non-profit organization is created to achieve social, charitable, cultural, educational, scientific and managerial goals, to protect the health of citizens, to develop physical culture and sports, meeting the spiritual and other non-material needs of citizens, protecting the rights, legitimate interests of citizens and organizations, resolving disputes and conflicts, providing legal assistance, as well as for other purposes aimed at achieving public benefits.

A non-profit organization can also engage in entrepreneurial activities, however, the profit received from such activities is not distributed among its participants, but is used for the purposes for which it was created.

To the number commercial organizations relate business partnerships and companies (general partnerships, limited partnerships, companies with limited liability, additional liability companies, joint-stock companies), production cooperatives, state and municipal unitary enterprises.

Non-profit organizations include consumer cooperatives, public and religious organizations (associations), foundations, state corporations, non-profit partnerships, institutions, autonomous non-profit organizations, associations of legal entities (associations and unions).

State registration with the tax authorities as a legal entity

A legal entity has legal capacity and legal capacity, which appear to it simultaneously at the time of its inception, that is, from the moment of its state registration and entry into the state register.

The legal capacity of a legal entity can be universal (general) and special (limited).

The universal (general) legal capacity of a legal entity means that this legal entity may have civil rights and incur civil obligations necessary to carry out any type of activity not prohibited by law.

commercial organizations, general rule, have universal legal capacity, regardless of the indication of a specific type of activity in their constituent documents.

The exceptions are state and municipal unitary enterprises, as well as those commercial organizations that are engaged in commercial activities in one specific area (for example, banks and insurance organizations).

All non-profit organizations have a special (limited) legal capacity, since they are all created to achieve certain goals using certain methods.

Termination of a legal entity

The legal capacity and legal capacity of a legal entity exist until the moment of its termination, which occurs in two forms: reorganization and liquidation.

Reorganization is the termination of a legal entity with the transfer of rights and obligations by succession to other persons.

Reorganization can take place in the following forms: merger, accession, separation, separation, transformation.

Liquidation is the termination of a legal entity without the transfer of rights and obligations by way of succession to other persons.

Liquidation can be voluntary (for example, by decision of the founders) or forced (by a court decision in case of violation of the law or in case of bankruptcy).

Legal entity: details for an accountant

Can interdependent legal entities sell goods to each other at cost?
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Reorganization of the institution: personal income tax and insurance premiums
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Conducting a test purchase is a new authority of Roszdravnadzor
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subsidiary liability. A complete guide for business owners and managers based on the analysis of 100 arbitration cases
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Income tax in 2018: clarifications of the Ministry of Finance of Russia
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Model statutes
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An individual entrepreneur is a legal entity or an individual? Answer unambiguously the question “Is an individual entrepreneur a legal entity or an individual?” difficult - at least for the understanding of a simple man in the street. If the answer to this question is unknown to you, but you need to deal with it, the article will help you.

Who is an individual entrepreneur, and why is it important to choose the right form of doing business

An individual entrepreneur is a person who, wishing to engage in entrepreneurial activity, registered with the tax office as an individual entrepreneur and received the appropriate right.

Understanding whether an individual or legal entity is an individual entrepreneur, it is necessary to understand the differences between individuals and legal entities.

A legal entity is an independent company that has the right to acquire rights and obligations on its own behalf. For example, when buying a product, it does not become the property of the founders of the legal entity, but the property of the company, i.e. the organization independently acquires the rights to property on its own behalf. Speaking of obligations, we can give a simple example - the obligation to pay taxes. Taxes should be paid by the organization, not its founders. Sole Proprietor Income Tax is paid by the Sole Proprietor.

We emphasize: the organization acquires rights and obligations not on behalf of the persons who established (organized) this legal entity. person, namely from his own.

Don't know your rights?

An individual, in turn, has personal rights and obligations, bears independent responsibility - receives ownership of the assets he acquires, bears personal responsibility for paying taxes, etc.

Let's explain in simple terms why it is necessary to distinguish the organizational and legal form. The fact is that a lot depends on the right choice - the procedure for registering as a legal entity or individual entrepreneur, the procedure for paying taxes, the ability to engage in one or another activity (for example, individual entrepreneurs cannot sell strong alcohol, but LLCs can), the procedure for submitting reports and accounting, and much more. Accordingly, when choosing a legal form, you proceed from the tasks of the future business and answer the question - is it possible with one form or another of doing business to succeed in the chosen direction of entrepreneurial activity.

Is an individual entrepreneur a legal entity

Is an individual entrepreneur a legal entity? The answer is unequivocal - no.

When considering this situation, it is necessary to pay attention to similar signs of IP and legal entities. persons:

bookkeeping duty, personnel office work(if there are employees), paying taxes related to doing business;
the presence of mandatory registration in the tax office, the ability to have a seal;
increased (in comparison with a natural person) responsibility for administrative offenses.

However, there are even more differences:

An individual entrepreneur, unlike the founders of a legal entity, is liable for debts with all his property.
one individual entrepreneur cannot be registered by 2 or more persons, but one organization can.
An individual entrepreneur does not submit as many reports as an LLC, it maintains simplified accounting.
Individual entrepreneurs have the right to choose a patent taxation regime, while LLC does not.

What do sole proprietors have in common with individuals

For ease of understanding, it can be argued: an individual entrepreneur is an individual who is registered with the tax office and can legally conduct business.

like an individual, an individual entrepreneur pays taxes, but he has more of them, because. he also pays income tax.
just like an individual, an individual entrepreneur is liable for debts with all acquired property, including a personal car, an apartment, a summer house, etc.
An individual entrepreneur can file for bankruptcy just like an individual.
An individual entrepreneur, like an individual, can be a citizen of Russia, a foreigner and a stateless person.
An individual entrepreneur, like an individual, can defend his interests in court, but business-related issues are not considered by the courts general jurisdiction and arbitration courts.

conclusions

So, we figured out the question of whether an individual entrepreneur is a legal entity or an individual. By virtue of the law, an individual entrepreneur is an individual, however, endowed with a special status and the opportunity to carry out entrepreneurial activities. There are many pros and cons of doing business. You can read about them in our article: "What is more profitable and easier to open an individual entrepreneur or LLC". Some types of business can not be run by an individual entrepreneur in principle, and this is a significant limitation. However, if the business is small, then IP is an excellent alternative to legal entities.

Individual Entrepreneur (IP)- registered in the manner prescribed by law and carrying out entrepreneurial activities without forming a legal entity.

Status of an individual entrepreneur

To acquire the status of an individual entrepreneur, a citizen must have the following common features subject of civil law:

Legal capacity (the ability to have civil rights and bear obligations);

Legal capacity (the ability to acquire and exercise civil rights by one's actions). Only capable citizens can carry out entrepreneurial activities, that is, those who are able to independently perform legal actions, conclude transactions and execute them, acquire property and own, use and dispose of it. As a general rule, civil capacity arises in full from the onset of adulthood (upon reaching 18 years of age);

Have a place of residence (a place where a citizen lives permanently or predominantly).

The status of an individual entrepreneur is acquired as a result of state registration of a citizen as an individual entrepreneur.

Registration of an individual entrepreneur

A citizen has the right to engage in entrepreneurial activities without forming a legal entity from the moment of state registration as an individual entrepreneur, and state registration can only be carried out at the place of his official permanent registration at the place of residence.

To register an entrepreneur, you must prepare the following documents:

a copy of the passport and certificate with the TIN number;

receipt of payment of the fee;

IP registration application a certain sample in duplicate.

Basic rights and obligations of an individual entrepreneur

Citizens registered as individual entrepreneurs have rights and obligations.

IP rights:

Ability to choose the types of activities permitted by law.

The right to hire workers.

Freedom to choose partners and products. The entrepreneur himself determines the market segment in which he will develop his business.

The right to independently determine the cost of goods and services offered.

The individual entrepreneur himself decides how and how much to pay his employees.

The entrepreneur has the right to dispose of the profits as he pleases.

An individual entrepreneur has the right to appear in court as a plaintiff and a defendant.

Sole proprietorship is a subject commercial activities who also has certain responsibilities. Namely:

All entrepreneurs must adhere to the rules current legislation.

All monetary transactions are documented. Such documents include, a contract for the supply of goods, etc.

To carry out licensed types of business, an entrepreneur must obtain a state permit - a certificate, patent or license.

All employees who are hired by an individual entrepreneur must be officially registered. That is, the IP concludes with a person labor contract, an agreement on the performance of specific works or other agreements. After completing the documents, the entrepreneur is obliged to make the necessary contributions to the Medical Insurance Fund, the Pension Fund and the Social Insurance Fund.

If the activity of the IP causes harm environment, he is obliged to take measures to reduce negative impacts. If a businessman cannot resolve this issue on his own, he must contact the environmental service.

The entrepreneur is obliged to pay taxes to the state treasury in a timely manner.

Sole proprietor is a participant market relations who must always respect the rights of the buyer.

If, for some reason, the IP has changed data (surname, place of registration or residence, type of activity), he is obliged to notify the relevant authorities - the tax office, funds and other institutions.

IP taxes and fees

An individual entrepreneur is obliged to pay a fixed payment to social funds, regardless of income.

There are four taxation systems:

Ordinary system of taxation (OSNO);

Simplified taxation system (USNO);

Single tax on imputed income (UTII);

Patent taxation system (PSN).

Advantages and disadvantages of IP status

The status of an individual entrepreneur has the following advantages compared to registering your own enterprise:

simplification of the processes of creating and liquidating a business;

free use of own proceeds;

Individual entrepreneur (IP): details for an accountant

Responsibility of an individual entrepreneur for violation of the deadlines for submitting the SZV-M form
Circumstances: an individual entrepreneur is brought to administrative responsibility, who has already been brought to administrative responsibility ... that the contested legal provision applies to an individual entrepreneur who acts as an insured in respect of ..., if such an obligation is not fulfilled by an individual entrepreneur, it becomes possible to interpret, assuming, .. .one imperfection of the current legislation: now individual entrepreneurs will not be held accountable...
On the impact of the OKVED codes declared in the USRIP on the tax and legal qualification of the activities of an individual entrepreneur
Entrepreneurial activity. On the contrary, if an individual entrepreneur carries out activities outside the scope of types ... information about an individual entrepreneur contained in the Unified state register individual entrepreneurs. Non-submission (... the totality of the above norms implies that an individual entrepreneur initially has a common (universal) ... 1. The nature of the operation. For example, an individual entrepreneur carries out retail food items...
The Supreme Court supported individual entrepreneurs - "simplifiers"
How to calculate insurance premiums individual entrepreneurs in 2017? Individual entrepreneurs using the USNO with ... are distributed. The revolutionary decision of the Armed Forces of the Russian Federation An individual entrepreneur applying the simplified taxation system with an object ... to the court of first instance. The position of an individual entrepreneur. The individual entrepreneur argues that it is unlawful to calculate ... contributions payable by the individual entrepreneur for himself. But an individual entrepreneur turned to the RF Armed Forces ...
The Supreme Court on the limitation on the value of fixed assets when individual entrepreneurs apply the simplified tax system
Exceeded by an individual entrepreneur during the reporting (tax) period, such an individual entrepreneur, according to ... determination of the residual value of fixed assets by individual entrepreneurs, is carried out according to the rules established by ... accounting "is not applicable to individual entrepreneurs. Firstly, individual entrepreneurs applying the simplified tax system, on ... the basis of the implementation of entrepreneurial activities by individual entrepreneurs and organizations, manifest themselves and ...
Individual entrepreneurs - "simplifiers" and courts against the FIU
Year. This case affects all individual entrepreneurs applying the simplified taxation system, since it is fundamentally ... compulsory pension insurance payable by an individual entrepreneur who pays personal income tax and does not produce ... paid for compulsory pension insurance by individual entrepreneurs for themselves, the base must be calculated ... insurance premiums paid to the FIU. Individual entrepreneurs applying the USNO with the object of taxation ...
Cost criterion for depreciable property of individual entrepreneurs applying the general taxation system
Cost criterion for depreciable property of individual entrepreneurs applying common system taxation... cost criterion for the depreciable property of individual entrepreneurs applying the general taxation system... b) the property must be directly used by the individual entrepreneur to carry out entrepreneurial activities; in ... the element of taxation - the procedure for calculating income tax by individual entrepreneurs - are subject to ...
Difficulties of choice: individual entrepreneur or LLC? (Part 1)
Most cases. Initially, it seems that it is indeed easier to be an individual entrepreneur. Legal ... in any form regulated by law. It is not at all necessary for an individual entrepreneur to open a separate ... implying the distribution of certain standards for individual entrepreneurs. Continuation
Participation of individuals without the status of an individual entrepreneur in the procurement of budgetary institutions
Not only legal entities and individual entrepreneurs (IP), but also individuals ... concluding a contract with an individual, except for an individual entrepreneur or another engaged in private practice ... The named individuals do not have the status of an individual entrepreneur, but in accordance with the tax ... contracts with a legal entity or an individual entrepreneur. However, as mentioned above...
Review of letters from the Ministry of Finance of the Russian Federation for March 2019
Upon the sale of a car, carried out by an individual entrepreneur paying UTII, is subject to taxation ... off-budget funds an individual entrepreneur is made from the moment of acquiring the status of an individual entrepreneur and until ... timely renounce the status of an individual entrepreneur or carry out entrepreneurial activities ... off-budget funds are made by an individual entrepreneur from the moment of acquiring the status of an individual entrepreneur and until ...
Conducting a test purchase is a new authority of Roszdravnadzor
An employee (representative) of a legal entity, an individual entrepreneur or his employee (representative); signs ... employees (representatives) of a legal entity, an individual entrepreneur or his employees (representatives) immediately ... an employee (representative) of a legal entity, an individual entrepreneur or his employee (representative). Works ... similar to those used by legal entities and individual entrepreneurs when making relevant transactions; ...
VAT in 2018: clarifications from the Ministry of Finance of Russia
Federation of goods by bodies, organizations or individual entrepreneurs authorized to carry out such implementation, ... established organizations or newly registered individual entrepreneurs, within a given three-month period ... to the state, provided by a foreign person to a Russian individual entrepreneur, the territory is recognized Russian Federation... texts provided by foreign organizations to a Russian individual entrepreneur, then, since the place of sale ...
The use of cash registers when selling products in rural areas
Patronymic - for an individual entrepreneur; taxpayer identification number assigned to the organization (individual entrepreneur) that issued (issued) the document ... -FZ. According to it, individual entrepreneurs using PSNO, with the exception of individual entrepreneurs engaged in types of entrepreneurial ... sale without forming a legal entity, individual entrepreneurs recognized as agricultural producers). Retail...
Introducing a new personal income tax reporting form: 3-personal income tax
Categories of taxpayers, including individual entrepreneurs, lawyers, notaries, other persons, ... number of lines 051 and 052. Individual entrepreneurs. Individual entrepreneurs are required to submit a tax return on ... payment documents) The tax return is filled in by individual entrepreneurs based on the data of the ledger ... year - taxpayers, including individual entrepreneurs applying the general taxation regime, must ...
Insurance premiums in 2018: clarifications from the Ministry of Finance of Russia
Whether they are self-employed or not. Payment by the individual entrepreneur of insurance premiums is carried out ... insurance from an individual entrepreneur arises from the moment of acquiring the status of an individual entrepreneur and until ... extra-budgetary funds by an individual entrepreneur are made from the moment of acquiring the status of an individual entrepreneur and up to ... 49921 The amount of remuneration paid by an individual entrepreneur to his employees for non-disclosure...
The activity of the IP was carried out for an incomplete billing period. How to calculate insurance premiums?
Individual Entrepreneurs" is provided for: the moment of state registration of an individual as an individual entrepreneur ... in the manner, upon termination of activity, an individual entrepreneur in addition to the mentioned fixed size insurance ... billing period income received by an individual entrepreneur from discontinued business activities, ... as an individual entrepreneur. Based on the foregoing, if an individual entrepreneur began conducting ...

Since the legislation of the Russian Federation and other countries provides the opportunity to conduct business activities, both through an individual and a legal entity, the question of classifying individual entrepreneurs in these two categories is relevant.

This article offers a detailed understanding of what a legal entity is and what an individual is and answers the question of whether an individual entrepreneur is a legal entity or an individual, and what consequences follow from this.

What is a legal entity

The concept of a legal entity has been around for a long time. Some experts attribute the appearance of the first legal entities to the times of Ancient Rome. But practical use of this concept, and given, as it is called “the institution of law”, began relatively recently. The birthplace of the modern understanding of the legal entity is England. And since case law is in force in this country, the birth of the modern legal entity took place in a litigation.

Solomon v. Solomon & Co. (1897) is the starting point that influenced the formation of the modern understanding (doctrine) of a legal entity. In the decision on this case for the first time, it was clearly stated that the company is an independent entity, a participant in civil law relations and a defendant in court. In civil circulation, it participates on an equal basis with individuals. The founders and other members of the company are not liable for its debts.

This understanding of the legal entity is reflected in Russian legislation. Modern for new Russia the understanding of the term "legal entity" was given by the Civil Code of the Russian Federation, which entered into force (first part) on January 1, 1995.

In a slightly modified version in 2014, the Civil Code of the Russian Federation gives following characteristics legal entity:

isolated property,
the ability to respond with property for their debts,
a legal entity exercises civil rights on its own behalf, as well as acquires,
able to carry out civic duties,
a legal entity acts as a defendant and a plaintiff in court.

When creating a legal entity, it must be registered in the state register of legal entities. At the same time, one of the organizational and legal forms provided for by law must be chosen for registration.

In addition, it should be added that a legal entity is not liable for the debts borne by its participants (shareholders, founders), and they, in turn, are not liable for its debts. There are a number of exceptions to the last rule, in particular, if the founders, when creating a legal entity, did not fully pay the authorized capital. But even in this case, the liability of the founders is limited only by the size of the unpaid share.

Running a little ahead, it is worth noting that the so-called “removal of the corporate veil” doctrine has not yet taken root in Russia. Generated by the same precedent legal system that is not characteristic of our state, this doctrine is quite popular abroad.

The essence of the doctrine lies in the fact that if a legal entity was used as an instrument for entrepreneurial activity, then the persons who stood behind this legal entity can be subject to civil liability measures that are usually applied to legal entities themselves. One of the few attempts to apply this doctrine in Russia is the decision in the case of Parex Bank.

The convenience of working through a legal entity, when doing business, is explained precisely by the protection of the founders of the company from the requirements of its creditors. A legal entity can conduct unprofitable activities, accumulating debts and "collecting" the claims of creditors. And if intent (fraud) is not found in the actions of its founders, then it will not be possible to apply measures against them, any responsibility. Given that the vast majority of legal entities in Russia are registered with a minimum authorized capital of 10,000 rubles, then this issue is quite relevant.

Banks that issue loans, and companies that have qualified lawyers on staff, in order to avoid the possibility of non-repayment of loans or other consequences of non-performance of obligations, a necessary condition for concluding contracts (for the provision of loans, loans, for example) put the receipt of guarantees from counterparties. For example, a pledge of property, or a guarantee for possible debts of counterparties by the founders.

What is an individual

Further, to answer the question: "Is the IP a legal entity or an individual?" it is necessary to consider what constitutes a physical person. The Civil Code actually equates the concepts of "natural person" and "citizen". This follows from the title of the third chapter of the code "Citizens (individuals)". But here we must not forget that the effect of civil law applies equally to both citizens of Russia and foreign citizens and stateless persons, unless otherwise specified by law. But if we are talking on administrative legislation, its norms are valid depending on the presence or absence of citizenship of a particular individual.

From the norms of the Civil Code, the following characteristics of an individual can be distinguished:

legal capacity - an individual is able to be a participant in civil legal relations and, accordingly, a bearer of civil obligations.
legal capacity - an individual is able, through his actions, to acquire and then exercise rights and obligations, this characteristic depends on the age of the person.
an individual, being a debtor, is liable for his obligation with all his property, with some exceptions established by law.

AT in general terms, these characteristics are similar to those of a legal entity. What distinguishes an individual from a legal entity? Here are some significant criteria for differentiation:

an individual exists in reality - a legal entity is a fiction,
an individual can be a citizen of the Russian Federation, a foreigner, a stateless person - legal entities are divided by organizational legal forms- LLC, JSC, State Unitary Enterprise, etc.
in order for a legal entity to become a full participant in civil legal relations, it is necessary to register it, for a physical entity it is necessary to reach the age specified by law,
a legal entity, if it is a commercial organization, is immediately created to engage in entrepreneurial activity - an individual (person) may never be engaged in such.

From the point of view of legislation, all activities carried out by an individual can be divided into four types:

work and service
provision of services and performance of works in a civil law manner,
private practice,
individual entrepreneurial activity

The first case refers to the activities in which the majority of individuals are engaged. The main number of citizens, gets a job, or goes to the service. In their case, the activity is carried out on the basis of an employment contract or service contract with the employer.

The second type includes citizens who, without a conclusion employment contracts, perform one-time services or works. Relations with customers, in such cases, are generally regulated by civil law and specified in civil law contracts. key point in this situation is that such services (works) are performed by an individual one-time - such activities are not of a systematic, permanent nature.

Private practice includes the activities of notaries, lawyers, arbitration managers. Such activity by its nature is as close as possible to entrepreneurial, but at the same time it has an important social orientation. Therefore, it is regulated by law separately.

And finally, business citizens. They conduct a continuous, profit-making activity carried out at their own peril and risk. They are responsible for their debts with all their property, with the exception of property that, according to the law, is prohibited from foreclosing. A citizen may be subject to bankruptcy proceedings in cases and in the manner prescribed by law.

In addition to these types of activities carried out by individuals, in the near future in Russia it will be possible to carry out activities on the basis of a patent, without registering as an entrepreneur.

What is an IP?

So, having analyzed the two indicated categories, between which it is necessary to make a choice, we will determine, after all, what does the IP refer to, to a legal entity or an individual.

First, it is worth recalling what the abbreviation IP stands for. This name, which came to replace the previously widely used one, means - "individual entrepreneur". The Civil Code does not provide an explanation of the term "individual entrepreneur". Instead, it is said that an individual can engage in entrepreneurial activities after registering as an individual entrepreneur.

Issues related to registration are the responsibility of the tax authorities. The activities of the tax authorities are regulated by the Tax Code of the Russian Federation. In it, we find the concept of an individual entrepreneur. According to the Tax Code of the Russian Federation, an individual entrepreneur is characterized by the following features:

registration in the manner prescribed by law,
carrying out entrepreneurial activities without forming a legal entity,
these are only individuals.

These characteristics of an individual entrepreneur (individual entrepreneur) make it possible to unequivocally answer the question “Is an individual entrepreneur a legal entity or an individual?”. IP is only an individual. It remains only to answer why this question arose, and with what it is connected.

The fact is that, according to the norms of civil law, the rules and regulations governing the activities of legal entities - commercial organizations are applied to the activities carried out by individual entrepreneurs. Accordingly, if the law somewhere states that certain norms apply to legal entities, therefore, it must be understood that they also apply to individual entrepreneurs, unless otherwise indicated. This issue is solved in the same way in the field of legislation on administrative responsibility.