Individual Entrepreneurship (IP) is one of the ways to generate income using your own capabilities and strengths. This is very important, for example, if you are a teacher who is able to do tutoring, give individual or group lessons, or an artist, writer, photographer. For people with land, there is the opportunity to grow vegetables, making a profit from sales.
Basic concept
Let's see what IP is. This is a form of small business. Individual entrepreneurs are individuals who are registered in a specific order established by law. They can carry out their private activities without forming a legal entity. Earlier in Russia they used the equivalent concepts of state of emergency (private entrepreneur), PBOUL (without the formation of a legal entity). Nowadays, these terms have been replaced by the concept of IP. What is an IP and why is it necessary to register? This procedure is of great importance if you want to earn legally. Registration of an individual entrepreneur takes place at the place of residence of an individual. However, he can carry out the activity itself at other addresses.
There is another feature that not everyone knows about: a place of residence should not be used for activities that are associated with any industrial production. The fact is that it is intended only for the residence of citizens. But this provision should be interpreted restrictively: it does not prohibit activities in these premises that do not contradict the rights of all persons living there, neighbors. For example, if your activity is related to intellectual work, for example, collecting data, writing scientific papers or drawing, programming, accounting, tutoring, auditing, consulting, then at the place of residence this can be done without breaking the law. In addition, as noted above, you can live at one address, and conduct your
business in another place.
When do people think about entrepreneurship?
Many people begin to think about what IP is only when they are not satisfied with something in the work of an ordinary employee in an enterprise. I want more income. At the beginning of independent work, in order to achieve good profit, you will have to work hard. But if everything works out, then in the future a person will become independent. It will not be necessary to work for the owner, since you yourself are in this case your own boss. The legislation allows only adults to engage in business. An individual who operates as an individual entrepreneur must be registered under his name. This is an independent subject of business and civil law, like any commercial organization. After registration, a person is the owner of the workforce with tools, can independently organize his work, manage its results. So what is an IP? This is an opportunity to become an independent worker under the law.
New in IP since 2013
Starting this year, there is no need for
individual entrepreneurs to submit the following reports to the tax authorities:
- Quarterly.
- Half a year.
- For 9 months of work.
For IP in 2013, there were other significant changes. The value of the insurance (fixed) contribution has increased. You can reduce the size of the single tax by the amount of contributions under the insurance contract. New concepts have appeared: patent activity and deflator coefficient. However, many entrepreneurs decided to leave the business this year, as social contributions for them almost doubled.
Registration and IP activities have a number of risks, but there is an opportunity to start a business, which allows you to become independent!