Pros and cons LLC in comparison with the individual business

LTD. "Pros».
1. The liability of the company's obligations limited to the amount contribution, ie. E. The founder of risks only within the value of their contribution to the authorized capital of the company, without risking their personal assets - art. 3 FZ "On LLC" "from 08.02. 1998 № 14- FZ.
2. Member of the Company may at any time withdraw from the society irrespective of the consent of the other participants or the public. Member of a limited liability company shall be entitled to withdraw from the company by means of alienation (sale, transfer) of the Company of its stake in its authorized capital. This output does not depend on the consent of the other participants or the public, if it is provided by the company charter.
3. The Company can sell or kupit.- Art. 21 of the Federal Law "On LLC". Such a sale is possible on the basis of a notarized contract and carried out by buying shares in the authorized capital of the company.
4. The Company can cover losses of previous years profit of the current year, and thus reduce the tax pribyl.- Art. 283 of the Tax Code of the Russian Federation.
5. The Company pays a premium to the Pension Fund, the amount of which depends on the profit earned during the reporting period, ie in the case of suspension or termination of the activity and the lack of balance on the property, the company does not pay any taxes.
6. Represent the company on behalf of its members can be its director. It does not require a notarized power of attorney.

LTD. "Cons».
1. A more complicated procedure of registration, in particular:
 - Need more provided during registration
Documents:
1) signed by the applicant application for state registration
legal entity when creating the form number R11001;
2) the decision to establish a legal entity as a protocol,
agreement or other document;
3) the founding documents of the legal entity (originals or
certified by a notary copy);
* 3) a statement of the foreign entities of the country
origin or any other legally equivalent
proof of legal status of the foreign legal
entity - the founder, if any
4) a document confirming payment of the state fee in the amount of 4,000 rubles.
(See. P. 1, Art. 333.33 of the Tax Code).
2. The authorized capital of the company must be at least one hundred times the value of the minimum wage - to claim 1, Art. 14 of the Federal Law "On Company».
3. The Company must necessarily have a bank account and seal. - To claim 4, 5, Art. 2 FZ "On LLC". And this, in turn, entails certain costs and committing further action.
4. Distribution of profits between the parties not less than once per quarter - Art .28 FZ "On LLC", that is, you can not be directly used to come to their own purposes and must wait a certain date profit distribution.
5. The Company shall keep accounting and submit financial statements. And to ensure the proper management and timely delivery of the reporting you need additional staff - accountant.
6. Penalties for administrative violations in the field of entrepreneurship at times more for businesses than for IP.- Ch. 14 of the Administrative Code.
7. The Company may not work as throughout Russia and abroad. But for that he needs to set up branches or representative to make appropriate changes in the constituent documents and wake up every time the tax registration at the new place of activity.

When comparing modalities Ltd. and SP detected a very important feature: in the form of LLC had the potential for future growth of the company, which is not observed in the form of IP. Company Registration in contrast to the registration of IP provides more opportunities for business development and revenue growth in founding a share of profits - at a significantly lower property and reputational risks.