SP - pros and cons

Individual entrepreneur - the most common form of business registration. The main difference from other forms of business registration, is that as a sole proprietor, you are responsible for its obligations with all its assets. For example, a member of a limited liability company meets its share in the authorized capital.

There are a number of advantages and disadvantages for registration as an individual entrepreneur.

Advantages:

The advantage of the simplicity of registration and liquidation of its IP (sole proprietorship).

There are a number of tax advantages.

The main disadvantages:

 - That meets their property for their activities.

 - There are aspects of business: you can not do business together, we can not formally appoint a director, some companies do not want to work with the individual entrepreneur.

-with recruitment, so there are some features. Not everyone wants to work for a private entrepreneur. We recommend that you once called your company. On the one hand, you will develop your brand and maybe a little once your little company will become a huge corporation. On the other hand, when the recruit not write that "SP Petrov required ..." Write that "Companies such are needed ..." Summary and get a lot more if you are working on an interesting topic, a lot of guys who had not gone to work for SP, after a conversation with you would be excellent members of your team. This is verified in practice.

 - There are a number of features of taxation, the need to maintain double-counting.

That is, if briefly summarize, the general scheme is as follows: you are registered as a sole proprietorship, the government makes no distinction between you, as an entrepreneur and an individual. What you earn, you can spend as you wish, net of tax, of course. But if contracted debts, will be responsible for the full program, with all its assets. In the case of, for example, a limited liability company, for financial accounting, the owners are separated from the company. The company's profit in the balance sheet is held as non-allocated profits and liabilities related to the company. And in the case of debt, will meet its share in the authorized capital.

Finally, we define the basic concepts:

Individual entrepreneur - a natural person duly registered and carries on business without a legal entity.

Entrepreneurship - an independent, carried out at your own risk activities aimed at systematically profit from the use of property, sale of goods, works or services.