How to choose the best bank services

[Mutt]

Despite the fact that opening a current account is not a prerequisite for doing business, it is unlikely that it will be possible to work without it. Any business involves settlements with customers and partners, and legislation imposes serious restrictions on cash transactions. It is illegal to use personal cards and accounts for business.
An account is just an account in a bank, but it is he who allows you to perform a lot of transactions with money, this is the so-called cash settlement service - settlement and cash services, and also provides access to specific bank services.

Therefore, the following factors can influence the choice:

• List of banking services. For example, almost any business requires certain investments at the start. The bank can ensure their availability using borrowed funds. Therefore, the conditions and the possibility of lending can be a key factor in choosing.
• Geography of presence. Even the largest banks from the top 10 do not have branches in all localities.
• Requirements for clients. For example, some credit institutions do not work with individual entrepreneurs.
• The cost of settlement and cash services. Even if the bank offers a free plan, you will somehow pay for its services. For example, a commission from incoming payments or from withdrawals, transfers, etc.

Tariffs of cash settlement services of legal entities
It is impossible to compare only the cost of opening a current account in banks. This is a one-time payment that can be neglected in most cases. The key indicator is the aggregate of all costs that a company or individual entrepreneur may incur in the process of servicing. Namely:

• Monthly commission for the maintenance of the bank account and access to it using the remote service system.
• The amount of fees for all transfers and other transactions. For example, in favor of individuals for the payment of wages, in favor of partners for settlements under supply agreements, cash withdrawals and deposits at cash desks, in self-service devices, etc.
• Prompt information on services and account status.

You can add to the total cost, or vice versa, subtract commissions and interest for additional services:

• lending;
• deposits (work in a plus);
• acquiring;
• etc.

The process of such a calculation requires a lot of time to study tariffs and the nuances of their application. Cash settlement rates for LLC and individual entrepreneurs may differ, may depend on the region, as well as on other factors.
Or you can just use our calculator. We will calculate everything for you. You just have to compare and choose.

In which bank is it better to open a current account of an individual entrepreneur
Favorable tariffs for cash settlement services for entrepreneurs are not always a decisive factor. The quality of service and technical capabilities of the bank are of no less importance. For example, in some credit institutions, opening an account can take several days or even weeks and require more than one office visit. And some banks can do everything in one, maximum two days, and accept and sign documents even without a visit to the branch.

Such high-tech banks with customer-oriented service include.
They focus primarily on remote service.
If you have a micro-enterprise and every penny is on your account, then it is better to open an account at a rate with free service.

Where is the best place to open an LLC current account
Sometimes a limited liability company can be managed by one individual, who will be the only employee concurrently. Therefore, such an organization is not much different from the same individual entrepreneur. But such situations are rather rare.

The form of ownership of an LLC opens up much greater business opportunities, therefore it is traditionally chosen to create companies with a good turnover. And if an individual entrepreneur, like individuals, guarantees on deposits are provided by the Deposit Insurance Agency, then a legal entity is not insured by anyone.
Hence the simple conclusion - you need to choose a bank first of all on the basis of its performance indicators, by which you can be convinced of its high reliability.
It will be a little more difficult to choose a tariff for settlement and cash services for legal entities than for the same individual entrepreneurs, since a larger volume of basic and additional services is expected. The bank must provide their maximum set.

These criteria include credit institutions from the top 10 in terms of revenue and / or capital.
So that the comparison of banks is not limited only to their tariffs, we have collected a lot of information about each of them, for example: key performance indicators, technical capabilities, reviews of real customers, geography of presence, a set of services and documents required to submit an application.

HELPFUL INFORMATION

• IE with VAT: pros and cons
• When you need to open a current account for LLC: 6 situations
• Patent taxation system for individual entrepreneurs in 2021
• How many years can an LLC be registered in 2021
• How many current accounts can an LLC have?
• How many LLCs can one person open
• Can an LLC operate without a checking account in 2021
• IE status: natural or legal person
• Can one person open an LLC
• Is it possible to open an LLC while working officially
• Can an individual entrepreneur open an LLC
• Is it possible to open an LLC at a home address in 2021
• How to open an LLC for a foreigner
• Can a former civil servant open an LLC
• 8 documents for opening a non-resident individual entrepreneur
• 10 documents for opening an LLC with non-residents
• 5 documents for opening an individual entrepreneur
• Documents for opening a current account of an individual entrepreneur or LLC
• IE or LLC: what organizational form to choose in 2021
• 7 documents for registration of LLC in 2021

IE WITH VAT: PROS AND CONS
Value Added Tax (VAT) is one of the government control instruments designed to protect against tax evasion. Allocation of VAT at all stages of interaction from the manufacturer to the seller allows you to shift the ultimate financial responsibility to the consumer. But if one of the links in the chain cannot allocate VAT and "transfer" it to the next link, then the tax burden for it increases, and it becomes unprofitable for other participants to interact with it.

When the obligation to pay VAT arises
To reduce the amount of taxes and simplify the reporting procedure, entrepreneurs belonging to the category of small businesses can switch to one of the special tax regimes, the most popular and universal of which is the simplified taxation system (also known as “simplified”). But there are others: a patent (not available to legal entities), imputed tax, agricultural tax.
Three of them exempt from the need to pay VAT.

The most frequent situations in which an individual entrepreneur will work with VAT:

• Voluntary application of the general / main taxation system. An individual entrepreneur can automatically receive such a regime if he does not submit an application for the use of one of the special regimes in time.
• An individual entrepreneur may lose the opportunity to apply the selected special regime if his business ceases to meet the mandatory requirements (for example, a type of activity will be opened that excludes the use of a simplified or special tax regime, the staff of employees, turnover and other aspects will increase significantly).
• Voluntary application of agricultural tax. Since 2019, it also implies the allocation of VAT.
• The entrepreneur opens / starts another activity (the special mode is not selected in advance or is not available).
• When an entrepreneur issues a VAT invoice to a counterparty (even if the current tax regime does not require VAT to be paid).
• If an individual entrepreneur works with the import of goods or acts as a tax agent.

Pros and cons of working with VAT for individual entrepreneurs
To assess the advantages and disadvantages it was easier, we will summarize all the points in a single table.

We will not consider situations in which an entrepreneur is faced with the need to enforce VAT (due to the type of activity or an unavailable alternative tax regime, etc.), since here the choice is obvious.

+/-	IE with VAT	IE without VAT
Benefits	An entrepreneur opens up a greater number of activities, including work with imports and excisable goods. Interaction with large and medium-sized companies becomes more profitable, since they can also allocate VAT on invoices (thus the tax burden is shifted to the next participant in the chain, up to the end customer). Does not have restrictions inherent in special regimes (for example, in terms of turnover and the number of personnel).	Reporting is much simpler (both in terms of paperwork and the frequency of data submission). In some cases, you can even do without hiring accountants. The tax burden on special regimes is noticeably lower in comparison, which ultimately has a positive effect on competitive prices (especially in the case of our own production).
Disadvantages	VAT requires additional reporting and a special approach to paperwork. That, in general, complicates the workflow, increases the burden on the accountant. If the counterparty cannot allocate VAT, then when the goods are sold to the next link or end consumer, this causes a significant price increase. An individual entrepreneur can reduce the cost, but this will affect the decrease in his profits. Itself is more difficult to maintain (most often an accountant with experience is required) and attracts more attention from the inspectors of the Federal Tax Service Inspectorate during inspections. Assumes work with another tax for individual entrepreneurs - personal income tax. And that's all - additional costs. Working expands the number of activities, but some of them still remain inaccessible to individual entrepreneurs (this is due to the form of ownership, and not because of the chosen tax regime).	Even if an individual entrepreneur works and exercises his right to refuse to pay VAT, then work with imports and excisable goods is still unavailable to him. Special regimes themselves have a number of fixed restrictions on the types of activities and other requirements for the business (in terms of turnover and the number of hired personnel). The inability to allocate VAT reduces the interest in interaction among large counterparties.

WHEN YOU NEED TO OPEN A CURRENT ACCOUNT FOR LLC: 6 SITUATIONS
Many executives and / or business owners believe that having a bank account for a newly created legal entity is a must. Therefore, they are trying to clarify the timing of opening a current account after the registration of the LLC. In fact, there is not a single provision in the legislation that directly enshrines such an obligation and, moreover, specific time limits allotted for this procedure.

A legal entity can work without opening an account, but such activities will be associated with a number of problems and restrictions:

• Under one agreement between legal entities, as well as between legal entities and individual entrepreneurs, cash settlement is allowed if the amount of payment does not exceed somemoney. There are no such restrictions in settlements with individuals.
• Funds from the cash register can be spent only for certain purposes: for wages, refunding money to the buyer, issuing accountable funds. Until there is a need for other types of expense transactions, a checking account is not needed.
• Exceeding the established limit of cash at the cash desk presupposes surplus delivery to the bank. However, small businesses may not set such a limit.
• Cash for payment under lease agreements must be withdrawn from the current account. But the premises can be owned by the company, its founders or the general director and provided for use by the legal entity free of charge.
• With a turnover of more than some money / year, companies are obliged to accept bank cards for payment (it is necessary to connect the acquiring service, which is impossible without a current account). For a start-up organization, as for most enterprises belonging to the small business category, such a turnover can be called serious - while it is not there, you can not think about acquiring.
• Payment of contributions to non-state funds for employees is accepted by the Inspectorate of the Federal Tax Service in a non-cash form. But the requirement for compulsory settlement from the company's own bank account was eliminated. A payment instead of an LLC can be made by an individual (founder or manager) from a personal account or another legal entity. Companies whose staff consists of one employee (manager), and which do not actually carry out any financial activities, can significantly increase the deferral of contributions if the director goes on vacation without pay.

Accordingly, the need to open a bank account with a company may never come at all.

The term for opening a current account for an LLC in a bank
A similar situation in the case of the procedure for opening an account for a legal entity. Banks set only indicative time frames that are comparable to the period required for all due diligence in relation to client companies.
Usually it is 1-5 days. But in practice, this period can significantly increase both through the fault of the bank's security service and because of the client himself.
Even a long check does not guarantee that the bank will eventually open an account.

PATENT TAXATION SYSTEM FOR INDIVIDUAL ENTREPRENEURS IN 2021
The word "patent" has two meanings at once:

1. it is a legal document that confirms the exclusive right of the owner to the object of copyright (invention, achievement in any area and other intellectual property);
2. This is a document that allows you to conduct a certain type of activity that falls under the conditions of federal or regional legislative acts, which greatly simplifies taxation.

The patent taxation system for individual entrepreneurs is an opportunity to conduct seasonal activities in certain areas, since a patent can be purchased for the required period (from 1 to 12 months, in multiples of one) at any time of the year, or the opportunity to try yourself in a new field.
Someone benefits from a patent on an ongoing basis, since its presence frees from the need to report to the Federal Tax Service Inspectorate and allows you to get other benefits. All these nuances are below.
This tax regime is available exclusively for individual entrepreneurs (legal entities cannot apply it).

All types of activities for individual entrepreneurs on a patent
The patent for 2021 is available for the following activities:

• repair or sewing of clothes (fur products, leather goods, knitted items, knitwear, textile haberdashery, hats);
• services of hairdressers / cosmetologists;
• repair / sewing shoes, as well as cleaning or painting them;
• dry cleaning and other services for the care of clothes or household items (washing, painting, etc.);
• repair and maintenance of household appliances and radio equipment, clocks, creation or restoration of metal products;
• production of keys, pointers, information plates;
• services of cinema or photo laboratories, photo studio;
• repair and restoration of furniture;
• repair and maintenance of motor vehicles (machinery, equipment, vehicles);
• services for the transportation of goods by road;
• similar services, but on water transport;
• passenger transportation by road;
• similar services, but on water transport;
• restoration of residential and non-residential buildings;
• various types of installation work (electrical, plumbing), as well as welding;
• work with glass (artistic processing, cutting, glazing of balconies, loggias, etc.) and mirrors;
• public education (tutoring, training courses, coaching);
• caring / looking after sick or children;
• acceptance of recyclable materials (except for scrap metal);
• veterinarian services;
• production of products of artistic folk craft;
• renting out own real estate (houses, apartments, land plots, summer cottages);
• other small production services (processing of forest and agricultural products, for example: grinding, peeling cereals, dressing of skins, processing of potatoes, wool, production of tableware and pottery, felt boots, shearing and combing wool, protection of plantations from pests; production of agricultural implements; metal engraving , wood, porcelain, glass, ceramics; repair of toys, boats, tourist equipment; printing invitations and business cards; harvesting firewood and plowing areas; replacing batteries, refueling gas canisters; bookbinding and stitching work);
• repair of bijouterie and / or jewelry;
• restoration or production of carpets;
• engraving of jewelry, their chasing;
• recording and re-recording of sound, acoustic works of the customer on various types of media (CDs, magnetic tapes, etc.);
• assistance services for the household, as well as for cleaning living quarters;
• decoration of premises;
• provision of paid toilet services;
• carrying out physical culture and sports activities;
• porters services (on the territory of railway, automobile or air terminals, river or sea ports, airports);
• home cooking and meals, private chef services;
• related (auxiliary) services for the sale of agricultural products (packing, washing, storage, drying, sorting, transportation or packaging);
• related (auxiliary) services for servicing agricultural production (various types of work: reclamation, agrochemical, transportation, mechanized);
• hunting and hunting management;
• floriculture and green services;
• services of private detectives (only with an appropriate license);
• pharmaceutical or medical activity (a license is required), except for the sale of drugs;
• rental organization;
• services of watchmen, guards, patrols;
• funeral services;
• services for the organization of various rituals;
• organization of excursions;
• grazing or slaughtering livestock, driving or transporting it;
• harvesting or collection of non-wood forest resources (including food: berries, fruits, mushrooms, etc.), medicinal plants;
• manufacturing of leather goods;
• production of dairy products (milk, cheese, yoghurts, etc.);
• canning, drying or processing vegetables and fruits;
• manufacture of bakery or confectionery products;
• growing seedlings of herbs and vegetables, fruit and berry plants;
• fish farming and fishing (sports and commercial);
• translation services (provision of oral and written translations);
• forestry, other forestry activities;
• processing of recyclable materials, work with waste (disposal, collection);
• care and supervision of disabled people, as well as the elderly;
• production of stone monuments (cutting, finishing and processing);
• services of programmers (development and creation of software, its implementation or adaptation);
• repair of PCs or equipment for communications.

The most interesting for entrepreneurs will be:

• retail trade on the territory of stationary facilities with a trading floor;
• retail trade without sales areas or through non-stationary objects.

Likewise for the catering sector:

• catering services on the territory of stationary facilities with a hall for visitors;
• catering services without visitor halls or through non-stationary facilities.

Regional authorities and municipal authorities can expand the list of activities for which the patent taxation system is available (they cannot reduce), as well as increase the maximum potential income (from 3 to 10 times, depending on the type of activity) and the deflator coefficient.

In addition, municipal authorities can set restrictions:

• by the total area of real estate leased;
• by the number of retail outlets or catering enterprises;
• by the number of vehicles.

The possibility of using determines the following restrictions:

• potential income cannot exceed some moneu / year;
• the number of employees should not exceed 15 people (in total, regardless of the type of activity and taxation system);
• the total amount of income (for all used taxation systems of individual entrepreneurs) cannot exceed some money / year;
• the patent is valid only in the territory of the region (municipality) in which it was acquired;
• for retail and catering services:
  • the area of the trading floor should not exceed 50 sq. m .;
  • it is not allowed to sell food products, alcohol and other excisable goods, medicines, gas, trucks and special vehicles, buses, trade by samples or remotely;
• the amount of mandatory contributions for oneself or for employees cannot be deducted from the cost of a patent for an individual entrepreneur;
• it is not allowed to carry out activities within the framework of a partnership or trust management of property.

How much is
The calculation of a patent for an individual entrepreneur is based on:

• potential annual income,
• numerical indicators of the business (the number of employees / retail outlets, the area of the trading floor in square meters, etc., depending on the chosen type of activity),
• the current deflator coefficient for 2021 is 1.592,
• tax rate (standard 6%, but regional authorities can reduce it to 4%).

Despite the presence of several components in the calculations, the total amount can be called fixed, since most of the indicators affecting the calculation do not change, or rarely change.
The maximum amount of potential income is determined by the threshold. (Taking into account the deflator, excluding the possibility of a multiple increase depending on the region / municipality and type of activity).
The first payment (one third of the estimated amount, in the period up to 90 days from the date of commencement of the patent), the second (until the expiration of the patent).
If the validity period of the patent is 5 months or less, the payment is made once, until the expiration date of the document.
The calculation of taxes is carried out by the Federal Tax Service Inspectorate, individual entrepreneurs only need to provide the necessary data. The preliminary amount can be obtained using a special online service on the tax website.

Comparison

Mode	PSN	STS (6%)
Benefits	Real income can significantly exceed the estimated one, which means that the amount of taxes to be paid will be less. You do not need to submit a declaration to the Federal Tax Service Inspectorate. The calculation of taxes is carried out by the IFTS. It is possible to combine it with different tax regimes (even with the simplified tax system). You can purchase a patent for the required period.	There is only one income book, regardless of the type of activity (if there is no patent). The amount of taxes can be reduced by the amount of contributions for yourself or employees. The territory of the regime is much wider (the entire region / oblast). The amount of taxes decreases with a decrease in income (but not less than the amount of mandatory contributions). More types of activities are available, other limits on the application of the tax regime are also higher (total income, headcount).
disadvantages	The income is recorded separately for each patent. The amount of tax is not reduced, even if there is no income. The territory of a patent is most often limited by the boundaries of a municipality (one patent - one city or even a city district). Fees for oneself / employees cannot be deducted from the value of the patent. Significant restrictions (by type of activity, by the number of employees, by total income)	You need to submit your tax return. The amount of taxes cannot be less than the amount of mandatory contributions. The mode is poorly combined with others (only with PSN and UTII). There are restrictions on the amount of income, the number of employees and the types of activities available.

The difference is most clearly seen when carrying out detailed calculations.

Situation 1
For example, an individual entrepreneur works in the village of Kashary in the Lipetsk region without hired workers and provides shoe repair services.
Read more about all taxes for individual entrepreneurs in different tax regimes.
With a simplified taxation system of 6%, the amount of taxes will directly depend on earnings, but cannot be less than some money (this is the amount of mandatory contributions of the individual entrepreneur for himself).
It turns out that the patent taxation system becomes profitable in this case when real incomes exceed some money / year.

Situation 2
The individual entrepreneur has one retail outlet and is engaged in retail trade that is subject to the requirements. The cost of a patent for 1 year in this case. The number of personnel does not affect the price of a patent. But the entrepreneur employs 2 sellers, for whom it is necessary to pay contributions to non-state funds. If the salary is equal to the minimum wage.
If the individual entrepreneur applies only the simplified tax system, then the amount of taxes will be 6% of income and the amount received can be reduced by 50% of the amount of contributions. With an increase in income, it is necessary to pay additional 1% of the excess amount.
The dependence can be visualized as follows.
It turns out that the PSN should be applied in this case only when the income from the outlet exceeds some money / year.

When to use PSN

1. The most advantageous situation is when the real income significantly exceeds the calculated one for the patent.
2. With a clearly expressed seasonal activity (a patent can be taken only for a season).
3. When starting a new activity (to assess the niche and potential development opportunities).

Transition conditions
The PSN can be used by individual entrepreneurs whose activities fall under the restrictions indicated above (number of employees, total annual income, type of activity, etc.).
Another important requirement is the availability of this tax regime in the selected territory of the constituent entity. It is necessary to clarify the conditions for specific regions and municipalities.

How to go

1. Submit an application in the form 10 days before the start of activities in the Federal Tax Service Inspectorate serving the required territory (not necessarily at the place of residence).
2. If the application for the transition was submitted simultaneously with the application for registration of an individual entrepreneur (or within 30 days after that), then the date of registration will be considered the date of commencement of the application of the patent.
3. Obtain a patent from the Federal Tax Service Inspectorate (paper version is not required, electronic is enough) - no later than 5 days later.
4. Make a payment (the terms of payment depend on the period of the patent, if the permit is obtained for a period of 6 months or more, the payment can be divided into 2 parts: 1/3 is paid no later than 90 days from the date of receipt, and 2/3 - until the expiration of the patent ).

HOW MANY YEARS CAN AN LLC BE REGISTERED IN 2021
Young people who have an interesting business idea want to start their own business as soon as possible. Parents themselves can contribute to this, acting as role models. Therefore, many people have a question - at what age can you open an LLC or register as an individual entrepreneur?
No matter how conscientious the young man is, the state has a different opinion on this matter.
Only a capable citizen can conduct commercial activities.

Legal capacity occurs in the following cases:

• Together with the onset of majority. Adults are understood as citizens who have reached the full 18 years of age. Citizens of other countries, if they are under 18 years old, must provide a document confirming emancipation.
• Upon entering into a legal marriage. Marriage is allowed from the age of 16 if there are valid reasons and with the mutual consent of the parties. Subjects have the right to establish other exceptions for marriages of minors. The legal capacity is retained by the citizen even after the divorce procedure. The only exception can be a situation in which the marriage is declared illegal.
• After emancipation:
  • legal capacity status can be obtained if a minor citizen over 16 years of age is officially employed (including under a contract);
  • after 16 years, if a citizen receives the consent of both parents (guardians, adoptive parents), the status of emancipation is confirmed by the decision of the guardianship authority;
  • if the parents refuse to give consent, the citizen has the right to seek emancipation through the courts.

From what age can a minor citizen open an LLC?
A citizen under the age of 14 does not have the right to conduct commercial activities on his own. One of the parents, adoptive parents or trustees will act on his behalf.
After 14 years without the onset of legal capacity or obtaining the status of emancipated, it is allowed to conclude transactions only with the consent of parents, guardians or adoptive parents, except for situations in which a citizen disposes of his own income (scholarship, salary, etc.) ...
An adult can be declared legally incompetent through a court, for example, if there is a medical indication.

HOW MANY CURRENT ACCOUNTS CAN AN LLC HAVE?
Many companies, to differentiate financial flows or for other objective reasons, come to the need to open a second or even more current accounts. But in this situation, a logical question arises - how many accounts can an LLC have?

At the moment, there is not a single legislative act that would regulate the number of operating current accounts for legal entities.
Moreover, the existence of an account itself is an optional requirement. For example, the law "On LLC" indicates only the right to open it, and not an obligation. True, it is quite difficult to conduct business without a settlement account (there are restrictions on the disposal of funds received at the cash desk; as well as when making payments in cash between legal entities within the framework of one agreement).
Therefore, how many current accounts an LLC can have is determined only by the company's management.

Advantages and Disadvantages of Multiple R / S

Pros	Minuses
You can differentiate and easily track the financial activities of separate divisions, branches, individual retail outlets.	The costs of settlement and cash services are growing, especially if accounts are served in different banks.
Accounts can be in different currencies, which opens up special opportunities when working with foreign partners.	The burden on the accountant is increasing and the overall complexity of managing financial flows is growing.
If accounts are opened in different banks, this increases the liquidity of the company's money and increases the stability of settlements. The risks of losses are reduced due to blocking an account in one of the banks for whatever reason.	Not all banks allow you to open two or more current accounts.
Current accounts can be opened in other banks to receive additional services (acquiring, loans and other forms of loans: leasing, factoring, guarantees).	A situation may arise when the bank reduces the amount of credit limits (for example, on overdrafts or similar products). After all, the volume of transactions carried out on the accounts of individual banks will decrease.
Several accounts in different banks allow you to assess the level of expenses and the quality of service in a particular bank (at the stage of choosing the most suitable solution).

HOW MANY LLCS CAN ONE PERSON OPEN
The legislation does not in any way limit the founders or participants of commercial organizations by the number of legal entities they create. The right of individuals to create a legal entity is enshrined, the answer to the question, how many LLCs can be opened for one person, will be the phrase "as much as you like". But there are a number of nuances:

• An individual may belong to one of the categories that are prohibited from doing business. These are, for example, military personnel, deputies, state and municipal employees. Restrictions are imposed by legislative acts regulating the activities of the departments to which these employees belong.
• All organizations registered for one person automatically become interconnected (, moreover, for the recognition of a relationship, it is not necessary that the same person be the founder, it can be his relatives, subordinates or other controlled persons), and transactions between them are made with an interest (an exception in a number of situations is made by the sole proprietors, who are also the heads of the organization). As a consequence - close attention from the Federal Tax Service Inspectorate. The legislation allows for additional checks in relation to such companies.
• The same is happening with the Federal Antimonopoly Service. The established organizations can be perceived as a sign of contributing to a dominant position in the market.

Therefore, the degree of attention of the regulatory authorities will depend on how many LLCs one person can open. By analogy, the tracks not only the owners of several companies at once, but also the legal addresses used for mass registration.

To identify the first and second categories of legal entities, the offers special services:

• Obtaining information about individuals who are managers or founders of several legal entities.
• Information about addresses of mass registration.

CAN AN LLC OPERATE WITHOUT A CHECKING ACCOUNT IN 2021
It is rather difficult to answer the question “can an LLC exist without a checking account?” On the one hand, the obligation to open an LLC current account is not indicated anywhere and is not directly enshrined in legislation. On the other hand, it is very difficult to conduct business without a bank account. Until 2011, this question could only be answered in the negative, because even if a company accepts only cash for payment for its goods or services, and similarly pays its partners and employees, it could only pay taxes from its current account, this requirement was excluded.

Restrictions on activities without CA
To ensure the transparency of all transactions and to track possible problems, the state creates all the conditions for companies to necessarily use the services of banks and carry out financial transactions mainly on current accounts. To make it uncomfortable for an LLC without a current account to work, a number of restrictions are established:

• Transactions with cash payments between legal entities, as well as with individual entrepreneurs, within the framework of one contract within one day, cannot exceed some money. This restriction does not apply to settlements with individuals (for example, for the payment of dividends or wages).
• Legal entities cannot spend funds received at the cashier at their own discretion. Expenses are allowed only for the purposes described (for example, for salaries, for issuing against a report, for returning to the client).
• The organization is obliged to set a limit on the cash balance on the cash desk (the amount is determined within the company, it does not need to be agreed with anyone, but the limit cannot exceed the expected volume of receipts in 92 working days). If the limit is exceeded, all cash must be deposited with the bank, the latter credits the money to the current account. However, small businesses are exempted from this obligation (for more details. If the organization does not belong to them, then the answer to the question whether it is necessary to open a current account for LLC will only be in the affirmative.
• It will be possible to pay for the lease of premises or for the purchase of securities for issuing loans in cash only if they are previously withdrawn from the current account.

Until recently, special requirements were imposed on the technical equipment of the cash register room (a safe attached to engineering structures, limited access for employees, etc.), but they were canceled.

How can you work
It turns out that an LLC can work without opening a current account, but it will be difficult to implement this in practice. Such an organization should:

• Own real estate or be located in someone else's premises without charging a fee. Alternatively, the company may not have any premises at all, for example, if the registration was made to the address of the registration of the founder or director.
• Accept payments from customers only in cash and in an amount not exceeding some money / year (in total) or not more than some money / year from a retail outlet, These limits are planned to be gradually reduced in the future). Otherwise, it becomes necessary to accept national payment instruments for settlement (the "World" card), which in turn implies the use of acquiring and a current account.
• Pay taxes and fees in cash through bank branches, from accounts of individuals or from accounts of other legal entities.
• Pay for the services of partners with personal cards or through branches of banks / paying agents. Even if you do not have partners for the supply of products, there is no way to get away from interacting with operators of fiscal data for online cash registers.

The consequences of a legal entity without a settlement account
Is an LLC required to have a checking account? It is not obliged, and cannot punish LLC directly for the absence of a current account. Therefore, the tax office will punish specific misconduct related to violations of cash transactions. Will surely raise questions:

• payments for the rental of premises;
• storage of cash at the cash desk (including the presence of a set limit);
• all expenditure and receipt transactions (all cash movements must be correctly recorded and have supporting documents);
• payments to off-budget funds (for employees) and taxes.

Violations are primarily punishable by fines, but there may be more serious consequences (up to imprisonment, depending on the offense). Some controversial points, for example, your right to pay taxes for a legal entity, may have to be proven in court.

Let's sum up
Can an LLC operate without a checking account? Maybe, but this is fraught with great difficulties and a number of limitations. The absence of a bank account at the organization will be justified unless at the beginning of its activity, when there are no settlements with partners yet and the director has not yet decided in which bank the company will be serviced. We recommend choosing an account in one of the TOP10 banks.

IE STATUS: NATURAL OR LEGAL PERSON
Before choosing a format for doing future business, many think about the status and form of ownership of their enterprise. One of the simplest and most affordable options is to register an individual entrepreneur. After all, it is logical to assume that since an individual entrepreneur can hire employees, conduct commercial activities, interact with other market participants, it turns out that an individual entrepreneur is a legal entity.

In fact, this is not the case. The status of an individual entrepreneur is significantly different from other forms of ownership.
The concept of an individual entrepreneur arises at the time of the exercise of the right by an individual to engage in commercial activities without forming a legal entity. Without official registration, such activities will be considered illegal (with the exception of a number of situations in which commercial activities of an individual are allowed without opening an individual entrepreneur).
In practice, it is very difficult to establish the differences between a full-fledged legal entity and an individual entrepreneur.

The most notable are the following:

1. An entrepreneur can conduct his business without a seal.
2. The profit received from the business belongs to the individual entrepreneur and he can dispose of it at his discretion at any time (legal entities, even if they are created by one founder, do not have such an opportunity, dividends are subject to personal income tax).
3. Certain types of activities are not available to individual entrepreneurs; additional restrictions may be imposed by the selected tax regime).
4. Individual entrepreneurs' fines are significantly lower than penalties from legal entities for similar offenses.
5. The presence of a current account for an individual entrepreneur is an optional condition (although in practice it is rather difficult to do without it).
6. The IE registration address is always the address of its registration. Although legal entities can also choose the place of registration of the director or one of the founders for the role of a legal address.
7. The entrepreneur is responsible for debts and property disputes with all his property (regardless of whether it is used for business), and the participants of the legal entity - in accordance with their share in the authorized capital (but there are a number of situations in which the participants may be held personally liable).

Therefore, the most correct answer to the question "Is an individual entrepreneur an individual or a legal entity?" there will be the following statement:
"An individual entrepreneur is an individual who officially conducts commercial activities".
Accordingly, only those statements in legislative acts that relate to individuals, or those in which the subject "individual entrepreneur" is clearly spelled out, can be applied to individual entrepreneurs, unless otherwise specified. An individual entrepreneur does not belong to the category of legal entities.

CAN ONE PERSON OPEN AN LLC
An organizational form such as a limited liability company (LLC) implies the presence of several founders or participants at once. They can have different shares of participation, which makes it possible to commensurately distribute the profits received, etc. But the law does not prohibit opening an LLC with one founder.

The mentioned and some other legislative acts establish the following restrictions:

1. An LLC cannot be opened by another business company if the latter is the only participant (that is, the LLC cannot establish another LLC on its own).
2. Certain categories of individuals are prohibited from conducting commercial activities, so they cannot register as individual entrepreneurs or be part of the founders / participants of commercial organizations. These are military personnel, state or municipal employees.

In all other cases, the answer to the question "can one person open an LLC" will always be in the affirmative, even if:

• An individual is a foreign citizen (for registration, he does not need to have a residence permit or other documents permitting the presence in the territory, it is enough only to translate a passport and a document confirming his place of residence).
• The applicant is already an individual entrepreneur or is officially employed (except for the mentioned exceptions), is a founder / participant of other legal entities.

Benefits of setting up an LLC with one member / founder
The following points can be distinguished as the main ones:

• Preparation of decisions and other documents important for the organization is much easier (all decisions are signed by a single participant). This applies both to the registration or liquidation process and to day-to-day activities.
• At any time, you can attract investors by introducing them into the list of participants (in this case, the charter is changed).
• It is easier to transfer an LLC with one participant into the possession of another person (for example, this is impossible with an individual entrepreneur, but in an organization with several participants, a collective solution will be required).
• In comparison with the same individual entrepreneur, LLC has fewer restrictions on the types of activities and can interact with large organizations).

Disadvantages

• In comparison with an individual entrepreneur, an LLC, regardless of the number of founders, necessarily has employees (to fulfill the duties of the executive body). Even if the founder is at the same time the CEO, the company is obliged to pay the last salary and transfer all due contributions and taxes to the funds.
• Despite the fact that the material liability of the company in most cases is limited to the authorized capital, in some situations the founders may be liable for debts with their property. In this case, an LLC with a single participant is not much different from an individual entrepreneur.
• The company cannot cash out profits at any time, like the same individual entrepreneur. Even the only founder can receive money from an LLC only through dividends, which are paid no more often than once a quarter. The tax burden for any method of cashing is always higher than that of an individual entrepreneur on the simplified tax system.
• Under any taxation system, LLC reporting is always complex (due to the presence of hired personnel and increased attention to accountable funds).
• To save on renting a legal address, many founders register a company at their home address. This imposes a number of specific problems and difficulties. For example, banks may refuse to open a current account, or it may be necessary to create a separate division to open production.
• A sole proprietor and sole proprietor opened for 1 individual at the same time automatically becomes interconnected persons, which attracts increased attention to their interaction from the Federal Tax Service Inspectorate. When trying to evade taxes (for example, when cashing company funds through an individual entrepreneur), you can get fines or more serious punishments (up to imprisonment).

If you have made a decision to register an LLC, read the step-by-step instructions.

IS IT POSSIBLE TO OPEN AN LLC WHILE WORKING OFFICIALLY
Many people think about their own business, but few can afford to immediately quit their current job. You can try to open a legal entity in parallel, combining a business with official employment.
This raises the question: is it possible to open an LLC if you work officially?

For the vast majority of situations, the answer is very simple: you can. But there can always be controversial points. More about them below.

• The first situation is legislative restrictions for certain categories of citizens who are prohibited from engaging in commercial activities. It:
  1. servicemen;
  2. civil servants and municipal employees;
  3. deputies and members of the Federation Council.
  Such categories of individuals cannot be individual entrepreneurs, as well as be part of commercial companies. Moreover, even after dismissal, civil servants are required to notify their former employers about employment within 2 years.
• The second situation is related to interconnected persons. For example, many candidates for positions in commercial banks are faced with the fact that their employer obliges them to give up the right to engage in commercial activities. This raises doubts among candidates about the legality and validity of such requirements. Can a bank employee be a founder of an LLC? Maybe, but in this case, the bank and the legal entity created by one of its employees become interconnected. This situation will cause close attention from the Federal Tax Service Inspectorate, as a potential loophole for tax evasion and other fraud. Hence, the bank has a desire to protect itself from possible troubles. A similar situation can arise in any other commercial organizations: as soon as a connection is found between legal entities,

In some cases, the founders of the LLC try to combine 2 jobs at once: for example, their old position in the organization and the position of the head of the LLC being created. An employee can combine any number of jobs. But then it should be stated in the employment contracts that this work is carried out concurrently. The same establishes a number of restrictions (for certain categories of positions and minors).
If these restrictions do not apply to you, learn how to open an LLC in 12 steps.

CAN AN INDIVIDUAL ENTREPRENEUR OPEN AN LLC
Entrepreneurs often ask themselves the question "is it possible to open an individual entrepreneur and an LLC at the same time?" But the answer is not the easiest one. An individual entrepreneur is actually an individual conducting commercial activities.

The legislation allows that a participant (founder) of an LLC can be either another legal entity (the main thing is that such an organization is not the only founder, while an individual entrepreneur does not belong to the category of legal entities), or an individual (an individual may even be a sole participant in the society). There are clear restrictions on individuals - only:

• servicemen;
• State Duma deputies and members of the Federation Council;
• civil servants.

Therefore, on the one hand, the answer to the question "is it possible to open an LLC having an individual entrepreneur?" will be in the affirmative. Moreover, an individual entrepreneur can conduct several types of activities at the same time, as well as be a participant in several LLCs and even in joint-stock companies, while at the same time officially work in positions in his own organization (most often these are managerial positions, but no one forbids him to get a job any other position). But in this case, a situation arises in which the participants in commercial activities become dependent.

According to the Tax Code, interdependent persons are individuals and legal entities:

• if their share in the capital of another organization exceeds 20% (including indirectly, for example, through a chain of other controlled organizations);
• if individuals are related by their official position;
• if persons are related by family ties (according to family law);
• on other grounds, if the court finds that the relationship between these parties may affect the results of transactions.

This status allows the tax authorities to double-check the correctness of prices and other terms of transactions. If deviations from similar market transactions between independent participants are found, will additionally charge taxes on the benefits received and impose a fine. There are also more serious punishments for tax evasion - up to and including imprisonment.
Therefore, whether an individual entrepreneur can open an LLC for himself or not, everyone decides for himself. If the goal is tax evasion (including with schemes where, instead of official dividends, an individual entrepreneur will be used to withdraw funds from the organization through fake deals, etc.), then it is better to refrain from such a step.
If you are planning to register a legal entity for a legal business, read the step-by-step instructions for registering an LLC.

IS IT POSSIBLE TO OPEN AN LLC AT A HOME ADDRESS IN 2021
Residential premises should be used only for living. If you want to start production in a residential facility, it will need to be converted to non-residential status.

This raises a reasonable question - is it possible to open an LLC at a home address? The short answer is yes you can. In most cases, will register a legal entity at the registration address, but there are a number of nuances:

• On the one hand, the legal address is the location of the executive body and there is no talk of any kind of production. In addition, directly permits the conduct of professional or individual entrepreneurial activity in a residential building.
• On the other hand, the same obliges to take into account the interests of other citizens living in this room, and neighbors. Therefore, along with the documents of title to the property, you will have to provide written consent from at least the owner and all those who are still registered at this address.
• Even more problems are added by various controversial situations when the dwelling does not belong to the owner, but to his spouse, relatives, friends or acquaintances. The object is in equity participation, there is an encumbrance under other agreements (for example, under a mortgage agreement). The residence permit is temporary, the apartment is not privatized, etc.

In fact, many companies choose residential as their legal address. In order to reduce the likelihood of failure, you need:

• Be registered at the specified address (the object may not necessarily belong to the applicant). Registration at the address of registration of one of the founders or director is allowed.
• Provide the written consent of the owner (owners, if there are several), as well as all other persons registered here.

Possible problems
If you open an LLC in an apartment or in a private house, the following situations may arise:

• Upon receipt of a license (required for certain types of activities), the licensing authority will necessarily require compliance with the technical conditions for conducting activities. Many of these requirements are not compatible with living quarters and it will not work to modify the object for them. You will have to create a separate division or change the legal address.
• The person who consented to the registration may change their mind.
• The director or founder, according to whose registration the registration was made, may resign or withdraw from the membership.
• Difficulties may arise with opening a bank account or obtaining borrowed funds for a business.

HOW TO OPEN AN LLC FOR A FOREIGNER
Several options for entering the market are available to foreign companies at once:

• creation of a representative office;
• branch opening;
• registration of a new company;
• acquisition of an already operating organization or a share in it.

Foreign individuals do not have this opportunity. They can only:

• register as an individual entrepreneur;
• open a new legal entity;
• purchase a working (or become a member of) legal entity.

For an individual entrepreneur, a prerequisite is the presence of a residence permit or a temporary residence permit.
The question arises: "Can a foreigner open an LLC without obtaining these documents?" Answer: "Yes, it can" .Therefore, for many, registration of a legal entity with foreign capital is practically the only option for entering the market.

How to open an LLC for a foreign citizen
The most important difference for foreign founders is the special requirements for documents confirming the identity and address of residence.
Passports or other equivalent documents in foreign languages must be translated and notarized.

This can be done in two ways:

1. with a personal visit of the founder with the original passport and translation to a notary;
2. directly in the country of residence (recognition of legitimacy will depend on the current agreements with this country, for example, an apostille may be required, it guarantees the recognition of the copy on the territory).

Otherwise, the procedure for registering an LLC with foreign capital is standard:

1. Submission of required documents:
2. Form,
   1. charter (unless one of the standard options is chosen),
   2. receipt of payment of the fee (no fee will be charged if submitted electronically),
   3. decision on creation, if there is one founder, or minutes of the meeting, if there are several founders,
   4. documents confirming the presence of a legal address on the territory (a letter of guarantee from the lessor or a certificate of ownership of the property).
3. Waiting for the result of consideration (no more than 3 days).
4. Obtaining the result (in electronic form or on paper on a separate request).
   It is also worth considering:

• An increased personal income tax rate is applied to foreign citizens (non-residents) (instead of the standard 13% for non-residents, it is 15%). It will be relevant when paying dividends.
• A foreign citizen can head the established company, but at the time of registration it is required (one of the following options):
  • work permit (relevant for citizens of visa countries);
  • patent (relevant for countries with a visa-free regime);
• Citizens of the Customs Union do not need additional documents for employment.
• Therefore, if a foreign citizen does not have permits, he can receive them only after the registration of the company. This means that at the time of filing an application as a leader, it is worth choosing a suitable candidate, and later replace him.
• Certain restrictions apply to legal entities with foreign capital, for example:
  • you cannot be a founder of a media outlet or a company producing security systems and alarms;
  • there are restrictions in the banking sector and in the field of insurance;
  • it will not be possible to buy border lands;
  • for security reasons, companies with foreign investors are prohibited from another 46 types of activities in accordance.

After opening an LLC, you will need a checking account.

AN A FORMER CIVIL SERVANT OPEN AN LLC
It is prohibited to combine work in state bodies with entrepreneurial or commercial activities only for active civil servants. For former employees of government organizations, this restriction does not apply.
Accordingly, a former civil servant can open an LLC.

But there are a number of nuances:

• It is important to correctly understand the status of a civil servant, because not everyone who works in municipal or state organizations is given it. For example, employees may not be endowed with the specified status, respectively, the question of any restrictions on the conduct of commercial activities in this situation will generally be irrelevant.
• An organization that hired a former civil servant, if his position belongs to special lists, and more than 2 years have not passed since the dismissal from service, is obliged to notify the representatives of the last duty station within ten days. This paragraph will apply to those who, when organizing an LLC as a founder / participant, would like to hire themselves for a managerial position.
• Since the organization being created is new and could not be in the sphere of activity of a civil servant while he was in execution, there is no conflict of interest, which means that the decision of the relevant commission will not be required, even if the former civil servant hires himself yourself as an employee of the organization.

8 DOCUMENTS FOR OPENING A NON-RESIDENT INDIVIDUAL ENTREPRENEUR
For the Tax Code, the citizenship of an individual receiving income and / or acting in the legal framework of the legislation does not matter.
Thus, a non-resident in the means not only foreign citizens, but also citizens who have been on the territory of their native country for less than 183 days in the last year.
The exception is civil servants and the military - they are always recognized as residents (regardless of the time of absence on the territory).
Of course, when opening an individual entrepreneur for a non-resident, the latter most often means foreign citizens. Let us dwell on them in more detail.

Documents for opening an individual entrepreneur for foreign citizens
The applicant must provide the following documents:

1. Receipt for payment of state duty.
2. Application in the form (the signature is put in the personal presence of the inspector of the Federal Tax Service or certified by a notary).
3. An identity document (for example, a refugee certificate, a foreign passport or other documents recognized as identity documents; if they are in a foreign language, then translated copies, notarized) must be provided.
4. Birth certificate (must be presented if the identity documents do not contain information about the place and date of birth).
5. Documents confirming the address of the actual place of residence on the territory (residence permit or temporary residence permit, as well as permanent or temporary registration).
6. Certificate of no criminal record (mandatory only for activities related to minors).
7. Consent to conduct business from parents or guardians if the applicant has not reached the age of majority (consent may be replaced by a court decision on recognizing an individual as fully capable, a decision of the guardianship authorities or a marriage certificate).
8. Notification of the transition to the selected tax regime (2 copies, the application can be submitted later, but no more than 30 days from the date of registration, the most convenient form of taxation for most individual entrepreneurs is simplified.

Feeding method
You can submit documents in person at your tax service (the department serving the address of permanent residence, if there is no permanent registration, then at the temporary place). If the multifunctional center provides such a service, the documents will still be sent to your FTS. In this case, the application must be unsigned at the time of submission. The signature is affixed in person in the presence of an inspector of the Federal Tax Service. Copies of documents do not need to be notarized (except for translations), provided that the originals are presented.
In addition, documents can be submitted:

• by mail (all copies must be certified by a notary, an inventory of attachments is drawn up, the value of the item is declared);
• through proxies (you need an additional passport of the representative and a power of attorney for him);
• via the Internet (only in the presence of a strengthened qualified digital signature, which is issued in certification centers).

Output documents
The IP registration procedure takes no more than 3 days. Based on the results of a successful operation, you will be sent by e-mail (must be indicated in the application):

1. record sheet;
2. SNN (in the event that a tax number was not assigned at the time of application).

If you need paper versions, you need to contact the Tax Office in person or through a representative.
If registration is not possible, the Federal Tax Service will send a reasoned refusal with an indication of the reasons.
There is no need to notify about opening a current account or receive a number for paying contributions.

10 DOCUMENTS FOR OPENING AN LLC WITH NON-RESIDENTS
Purely legally, any limited liability company registered is a resident. However, the founders may include non-residents (both individuals and legal entities working / living under the laws of other countries, that is, abroad).
The most striking example is an LLC, which is being opened as a branch of a foreign company.
The registration process for such an LLC is subject to the standard rules described ("On State Registration of Legal Entities and Individual Entrepreneurs").

Documents required for registration

• Receipt / receipts for payment of state duty. (the amount can be divided into different parts comparable to the share of capital, into equal parts or paid in full by one participant).
• Charter (in 2 copies or an indication of activities under the standard charter).
• Application in the form (if all founders can be present when submitting the application in person - signatures are put in the presence of an inspector of the Federal Tax Service, originals of identity documents and their notarized translation are presented if they are in a foreign language, otherwise the signatures must be notarized).
• For founders who are citizens - passports.
• For founders who are citizens of other countries:
  • passport or other identity document in the native language;
  • its translation, certified by a notary.
• For founders legal entities:
  • extract from the Unified State Register of Legal Entities;
  • constituent documents (depending on the form of the legal entity);
  • decision / extract from the protocol.
• For founders-foreign legal entities:
  • an extract from the legal entity register of the country of origin (translated, confirmed at the consulate or certified with an apostille).
• The decision of the sole founder (if there is one founder), the minutes of the general meeting and the agreement on founding (if there are several founders).
• Notification of the transition to the selected taxation regime (the application can be submitted separately, but no later than 30 days from the date of registration of the legal entity).
• A letter of guarantee from the landlord or a certificate of ownership of the property where the governing body will be located.

If a foreign founder cannot come to sign an application for registration, then a sheet with his data is printed, translated into his native language and signed in the country of residence of the founder with certification by a foreign notary. Apostille is affixed to the application, a notary checks the correctness of the translation (with the participation of a professional translator) and certifies it.

Method of submitting documents
As well as for residents, the submission of an application and a package of documents is possible in the following ways:

• in person;
• by mail (with drawing up an inventory and declaring the value of the item);
• proxies (proxies do not have the right to sign the application for registration, they can only submit or receive documents, they need to present a notarized power of attorney and passport);
• remotely - via the Internet (only in the presence of a qualified electronic digital signature obtained at the certification center).

The documents are submitted to the tax office serving the address at which the company will conduct its activities (it is allowed at the place of residence of the founder, however, additional documents may be required, such as a certificate of ownership of the house / apartment and the consent of all residents to conduct business) ...

Documents on the results of the provision of registration services
The registration process takes no more than 3 days. As a result, sends a refusal to the e-mail address specified in the application indicating the reasons or:

• record sheet in the Unified State Register of Legal Entities (form);
• SNN of the organization;
• a copy of the registered articles of association.

It is possible to obtain paper documents only upon a separate application to the Federal Tax Service.

5 DOCUMENTS FOR OPENING AN INDIVIDUAL ENTREPRENEUR
The procedure for registering an individual as an individual entrepreneur (IE).
According to the latter, a resident will need the following documents for registration.

On a personal visit

1. Citizen's passport (+ copy of all pages).
2. Receipt for payment of the duty.
3. Application for state registration as an individual entrepreneur (form).
4. Notification of the transition to one or another taxation regime (most often - form in 2 copies, such an application can be submitted later).
5. Certificate of no criminal record (only when selecting individual codes).

The Federal Tax Service provides a special service for the formation and submission of an online application for registration with payment of state duty without a qualified electronic signature. It involves a personal visit by invitation from the tax office to sign documents. You only need to take your passport with you.

When submitted by proxies

1. A copy of the passport of a citizen(must be notarized).
2. Receipt of payment of the duty.
3. Application for state registration as an individual entrepreneur (form, signature must be, must be certified by a notary).
4. Notification of the transition to the selected taxation regime (optional).
5. Certificate of no criminal record (only for certain codes).
6. Representative's passport and power of attorney (certified by a notary).

When submitting online

1. Document data (most of it can be taken from the account on the State Services portal when authorization is performed through its API), originals or copies do not need to be provided.
2. To sign an electronic application, a qualified electronic signature is required (a certificate is issued at the selected certification center, a list of valid CAs can be found on the FTS website), a crypto provider and a browser plug-in.
3. The state duty will be paid online at one of the steps on the application submission (a 30% discount is provided).

The notification of the transition to the selected taxation regime can be filled out in a third-party service and submitted through the individual account of the individual entrepreneur, also in electronic form. Or attach it right away.

By mail

1. A copy of the passport of a citizen (must be notarized).
2. Receipt of payment of the duty.
3. Application for state registration as an individual entrepreneur (form, signature must be, must be certified by a notary).
4. Notification of the transition to the selected taxation regime (optional).
5. Certificate of no criminal record (only for certain codes).

The shipment must be with a declared value and a list of investments. Delivery is available to residents of Moscow via Pony Express and DHL Express.

Important points

• The registration application must be filled out in block letters by hand or typed using technical means. Mixed filling is not allowed - that is, you cannot add data to the printed version by hand and vice versa.
• If you submit your signature in person, there should be no signature in the application. It is put in the presence of a tax officer.
• The application cannot be printed on both sides of the sheet (each page on a separate sheet). You do not need to flash them.
• If the application for the transition to the selected tax regime was not submitted immediately, it must be submitted within 30 days.
• If you do not know your SNN, you can use a special service on the tax website or on the public services portal.
• For individual entrepreneurs, there are restrictions on certain types of activity (some codes are not available).
• The duty is non-refundable (even in case of refusal to register).

Where to submit documents
The package of documents is submitted only to the tax authority at the place of permanent residence (registration).
You can clarify the number and details of the service inspection on the tax website (there is a special service).
You can submit documents at the place of temporary registration only if there is no place of permanent registration.
You can hand over a package of documents in person or through a proxy, including through the MFC.

Output documents
For the registration procedure of an individual entrepreneur, the tax authorities have 3 working days. Upon the expiration of this period, the tax authority provides either a reasoned refusal, or sends to the e-mail address (e-mail specified in the application) a sheet of the record and a SNN certificate.
An entrepreneur can obtain a paper version of the record sheet at will directly from his tax office.
The registration of an individual entrepreneur is carried out by the tax authority within 2 weeks. Previously, the registration number was used to pay taxes, but now all contributions go through the Federal Tax Service.

DOCUMENTS FOR OPENING A CURRENT ACCOUNT OF AN INDIVIDUAL ENTREPRENEUR OR LLC
The list of documents for opening a bank account depends on the type of organization and the purpose of its existence. There are more than 30 types of organizational and legal forms of legal entities according to the definitions and other legislative documents, of which about a dozen are commercial.

Below we will consider the issue of opening an account by the most popular commercial enterprises:

1. individual entrepreneur (IE);
2. limited liability company (LLC).

The bank's requirements depend on the status of the legal entity (resident or non-resident, branch or representative office, notary or lawyer, etc.). The most accurate list of documents required for opening and maintaining a current account is always easier and faster to obtain at the bank with which you plan to conclude an agreement for settlement services.
Many banks today offer opening a preliminary account online (without a visit to the bank). You fill out a special form and receive the account details, for which you can immediately accept payment. Later, after a personal visit to the bank branch, you can conclude an agreement and continue to use the current account to the fullest.

A typical package of documents for opening a current account of an individual entrepreneur - a resident

1. Certificate of registration of an individual as an individual entrepreneur. Then the original certificate of making an entry in the Unified State Register is required.
2. Certificate of registration with the tax authority (this is a document with a SNN, now the certificate can be obtained in your tax office even in electronic form, data from the SNN can be entered into the passport if desired, however, it is better and easiest to provide a certificate to the bank on the state sample).
3. An extract is issued when an individual is registered as an individual entrepreneur, however, its validity period is no more than 30 days from the date of receipt. If 30 days have passed, you may need to reapply to the tax office for an extract (but the bank may not request this document, or accept an expired one).
4. Information letter from Federal State Statistics Service on the assignment of codes.
5. IP passport (with citizenship), if the account is opened in person. For a trustee - a passport and a document confirming authority (notarized power of attorney).
6. If the activity of an individual entrepreneur requires licensing, it is necessary to provide licenses or other permissive documents.
7. If it is not only the individual entrepreneur to sign the documents, then for all employees entitled to sign, it is necessary to provide passports and documents confirming their powers.
8. The rest of the documents can be drawn up directly at the bank (an application for opening an account, a card with samples of the seal and signatures of the responsible persons, a power of attorney for the right to receive extracts, questionnaires, etc.). You can get the forms and fill them out yourself at any convenient time, which will significantly speed up the process of opening an account.

Depending on the selected cash settlement service, at the exit you will receive your copy of the signed agreement, information about the open account (account number, BIC, etc.), as well as: a card linked to the account (with an envelope with a PIN code inside), a check book, parameters of access to your personal account (login and password), USB-token (hardware key for access to Internet banking).

A typical package of documents for opening a current account of a limited liability company (LLC) - a resident

1. Valid constituent documents (Articles of Association, amendments, if any, Memorandum of Association).
2. Certificate of registration of a legal entity and / or certificate of entry into the Unified State Register of Legal Entities.
3. Tax registration certificate.
4. The bank may require, at its discretion, an extract(must be no older than 30 days from the date of issue) or, alternatively, a Record Sheet (issued after registration with the tax office, validity period - no more than 30 days from the date of receipt).
5. Information letter, which indicates the assigned codes.
6. Documents confirming the powers of the sole executive body of a legal entity (general director, chairman of the board, president, etc.) or other persons selected to manage the company's current account. Such documents can be minutes of the meeting (extracts from the minutes) with a decision on the election / appointment, contracts concluded with the head, etc.
7. Identity documents of those persons who are empowered to manage the current account, receive extracts, sign and maintain check books.
8. If a current account is opened by an authorized person, it will be necessary to provide a passport of a citizen and documents confirming the powers of the authorized person.
9. If the activities of an organization require compulsory licensing, the bank must provide licenses or permits issued by authorized bodies.
10. Bank documents (application for opening a current account, information about LLC participants, questionnaires, a card with samples of signatures and seals, a power of attorney for the right to receive extracts and the service contract itself). Some of the documents can be filled out before visiting the bank (for example, by downloading them from the official website of the bank or having previously taken the necessary forms at the bank's office), this task is especially relevant with cards in which samples of signatures of officials will be affixed (only originals of signatures, facsimiles or electronic copies will not be accepted).

The agreement is signed in two copies, one remains with the bank, the second is given to the representative of the LLC who opens the account. Depending on what additional cash settlement services will be connected, all the necessary materials stipulated by the agreement will be issued (account details, cash cards, USB tokens, checkbooks, etc.).

IE OR LLC: WHAT ORGANIZATIONAL FORM TO CHOOSE IN 2021
Those who have a desire to start their own business are sure to ask the question "What is better to choose, LLC or individual entrepreneur?"
If everything is clear with the background, then everything is very difficult with the answer directly. And the point is not even that the available taxation regime or property liability depends on the form of the enterprise, but also the types of activities, certain restrictions are imposed on operations with the withdrawal of money, and much more.
Below we will try to highlight as fully as possible the differences between such forms of ownership as "Limited Liability Company" (hereinafter LLC) and "Individual Entrepreneur" (hereinafter IP).

Differences in property liability
In short, an individual entrepreneur is not a legal entity or organization, and therefore he always bears financial responsibility for the results of his activities with all his personal property (including those acquired before the start of entrepreneurial activity). Of course, there are a number of exceptions, they are described. In particular, a sole proprietor cannot be taken away from the only available house or plot of land.

In the case of an LLC, there are two types of liability:

1. liability of a legal entity,
2. responsibility of members and founders.

First of all, the first type of liability occurs (in accordance with the share in the authorized capital), but if, for example, the company's property is not enough to pay off debts on obligations in the event of a bankruptcy procedure, then the second type occurs. Debt payments will be made at the expense of personal property and funds of participants and founders (beneficiaries).

Available taxation regimes
The following tax regimes are available to individual entrepreneurs in 2021:

• general;
• simplified (simplified tax system), here there can be only accounting for expenses or accounting for income minus expenses;
• imputed income tax;
• agricultural tax (unified agricultural tax);
• patent system.

For a limited liability company:

• general;
• simplified (simplified tax system), just like an individual entrepreneur, the calculation of taxes can only proceed from income or from income minus expenses;
• unified tax on imputed income;
• agricultural tax (unified agricultural tax).

LLC is not available patent taxation system.
Depending on the chosen regime and form of ownership, the interest rates of deductions to the tax inspectorate and other authorities are determined. In order to correctly substantiate the optimal choice of the regime, you need to scrupulously calculate all possible payments and deductions depending on the volume of trade, the type of activity of an individual entrepreneur or LLC, and also take into account the benefits and subsidies provided (the latter depend on the region in which the activity will be carried out).
By themselves, taxation regimes impose certain restrictions on the organization, for example, with the simplified tax system, more than 100 people cannot work in the organization, the OSNO imputes various tax rates (for LLC it is 20%, and for individual entrepreneur - 13%), etc.

Contributions (fixed contributions to the Pension Fund)
Below we will indicate only the main payments that are borne by LLCs and individual entrepreneurs in most regions. In certain cities, zones and regions, tax incentives may be practiced depending on the type of activity, the volume of trade, the type of taxation, etc.
Individual entrepreneurs without employees on the simplified tax system 6% can deduct the contributions paid for themselves to the Pension Fund, paid even if the activity was not conducted or was conducted at a loss) from the amount of taxes for the reporting period.
LLC and individual entrepreneur on the same regime, but with employees, can deduct no more than 50% of all paid contributions (for the business owner and for employees).
In the "income minus expenses" mode, all contributions are included in the category of expenses, which means that they reduce the final taxes by the corresponding amount (do not forget about the minimum tax of 1% of total income for the year, it cannot decrease in any way).
Thus, the form of ownership does not greatly affect deductions and tax payments, but strongly depends on the chosen tax regime.

Registration procedure
The volume of documents for individual entrepreneurs is significantly less. He only needs a statement, a receipt for payment of the duty and a passport (plus a notarized power of attorney if a trustee registers).
To register an LLC, the charter of the organization and the authorized capital are required.

Registration address
An individual entrepreneur is obliged to indicate during registration only the actual address of residence (registration). At the same time, he can conduct activities in other regions (subject to the opening of branches), but he will submit reports only to the tax authority at the place of registration. The exception is the UTII regime and the patent taxation system. In this case, taxes are paid at the place of business.
An LLC can be registered both at the office address (a building or premises can be owned or rented), and at the address of registration of one of the founders. True, some tax inspectorates oppose the latter option.

Liquidation procedure
As in the case of registration, the closure of an individual entrepreneur is much simpler than a similar process with an LLC.
If the individual entrepreneur did not have employees, all actions end with the filing of a special application and a tax return for an incomplete reporting period.
In the case of an LLC, a special commission is assembled, its decision is sent to the Federal Tax Service on the need to liquidate the company, a notice is sent to a special edition ("Bulletin of State Registration"), an interim balance is submitted, creditors are notified, the state duty is paid and only then the final package of documents is submitted to the Federal Tax Service ... Of course, the tax office can carry out an unscheduled audit of a closing enterprise.

Moving money
The individual entrepreneur disposes of all the money as his own and therefore can withdraw the required amount from circulation without any consequences (both from the cash desk and from the current account ).

For an LLC, everything is much more complicated. So, you can withdraw money from circulation only as follows:

1. the founders are paid dividends in accordance with the established procedure;
2. officials (including the CEO) are paid salaries. The amounts are determined in the employment contract and additional agreements to it;
3. under loan agreements or agreements with other legal entities, individual entrepreneurs.

Probably for the latter reason, many LLCs simultaneously register individual entrepreneurs, so that it is possible to withdraw funds from circulation quickly and with minimal losses.
Income tax is withheld from dividends and salaries of employees - 13%. In addition, the employer (regardless of the form of ownership) bears the burden of paying contributions to the Pension Fund (this is 30% of the salary).

It is worth mentioning that for violations with the movement of cash, revealed in cash discipline during the inspection by authorized bodies:

• Individual entrepreneurs;
• LLC and other legal entities.

The movement of cash within the framework of one agreement between organizations, including individual entrepreneurs. For these purposes, non-cash payments are used (transfers between current accounts).

For entrepreneurs, simplified rules of cash discipline apply (apply to all legal entities that accept cash). For example:

1. Individual entrepreneurs are not required to set a limit on cash balances at the cash desk by an appropriate order (the same rule applies to LLCs belonging to the category of small and micro-enterprises). Otherwise, the surplus must be withdrawn from circulation (by the collection service, etc.).
2. Individual entrepreneurs are not required to draw up such cash documents as cash book, cash register. Entrepreneurs have only the obligatory responsibility of drawing up salary documents (payrolls).

Accounting books, as well as documents on the report on the work of the cash register are drawn up for individual entrepreneurs and LLC in the same order.

Reporting
In most cases, the format, the data indicated and the list of reporting documents are determined not by the form of organization, but by the selected taxation regime.

But there are a number of differences:

1. SP may not submit accounting records;
2. An individual entrepreneur without employees does not submit any reports, except for tax returns;
3. LLCs and other legal entities belonging to the category of small enterprises report on accounting in a simplified form.

Wage-earners
There are no differences in technology, reporting and registration between LLC and individual entrepreneur in this area.
An individual entrepreneur no longer needs to register with the Pension Fund or deregister when hiring employees.

Investments
If we talk about an LLC as an organization with equity participation, then it can easily and, most importantly, legally competently expand its capital by attracting third-party investors, which is very important, for example, for startups. True, investors in this case can also receive a share of the enterprise.
In the case of individual entrepreneurs, investing is very risky. Legally, such a procedure is very difficult to formalize, as well as to reclaim at least some funds in the event of an enterprise collapse. That is, for individual entrepreneurs it can be either a classic loan with interest, or leasing.

Restrictions by type of activity
With all the shortcomings of individual entrepreneurs, you can do business even on a serious scale. But the state has banned the activities of individual entrepreneurs in certain areas. Namely:

• trade in alcohol (the only exception is beer) or its production;
• insurance activities;
• the creation of banks and investment funds;
• opening of pawnshops;
• provision of tour operator services (with the exception of intermediary activities, for example, as a travel agent);
• the opening of the production of drugs;
• creation, production and trade of military products;
• supply and production of electricity;
• provision of security services (PSC);
• creation and maintenance of pension insurance activities (provision, etc.);
• and etc.

Comparison table
As a short and visual material on the topic of choosing between an LLC and an individual entrepreneur, you can use the table below.

Criterion	SP	Ltd
Registration / liquidation	Simple (minimum of documents). The fee is small. Only at the place of residence.	Quite difficult, time consuming and costly. The state duty for registration + authorized capital. You can register at any legal address (including a rented one).
Financial responsibility for obligations	Only personal, with all your belongings.	Group based on equity.
Cash from circulation	Disposes at its own discretion.	Working with large amounts only through a current account. Dividends only from net income based on the charter (for example, once a quarter). Employees - only salary, for needs under contracts.
Tax	According to the selected tax regime. An individual entrepreneur without employees on the simplified tax system can set off fixed contributions to the Pension Fund in full.	According to the selected tax regime.
Accounting	It is enough only the book of accounting of income and expenses	For small businesses - a simplified regime.
Penalties	Not more than some money.	Depending on the severity of the offense
Business transfer	Not transferred or reissued	Can be expanded, included new members, transferred or reissued
Investment / partnership	Registration takes place only for one person, investment is very difficult.	The main condition is no more than 50 founders, the investor can join the founders with a new stake.
Staff	An individual entrepreneur can operate without hired labor.	From the very moment of its creation, the LLC has positions and personnel.

So which is better and what to choose, LLC or individual entrepreneur?
The problem with this choice is that there is no single right answer. Depending on the tasks and business model, you need to choose not only the correct organizational form, but also the tax regime.
For example, if you are planning to create a large-scale industrial enterprise, then in most cases you need a full-fledged legal entity with collective responsibility, that is, LLC.
And if the category of products or services provided is not allowed for individual entrepreneurs, then you will simply be denied the registration procedure at the stage of filing documents. Thus, certain areas of activity are available only to LLCs and other types of legal entities.
If an individual legalizes his small business, for example, activities on the Internet for the provision of information services, writing texts, etc., as well as other work (including offline), which is performed independently, without the involvement of hired labor, then the choice of the form registration is obvious - individual entrepreneur under the simplified tax regime.
If you plan to attract investments, new partners, expand your production, increase the number of regions of presence, then the choice is also very simple - LLC.
A very important point is that the FTS does not prohibit the registration of several legal entities for certain types of activities with different tax regimes. The only drawback here is that for each open legal entity it will be necessary to pay the required fees, duties and taxes.

7 DOCUMENTS FOR REGISTRATION OF LLC IN 2021
The procedure for registering a legal entity is regulated by Federal Law.
For resident organizations (legal entities created in accordance with the legislation, including branches), the following lists of documents are relevant.

On a personal visit

1. The company's charter (this is the only correct constituent document for an LLC) - in 2 original copies. The exception is the conduct of activities according to the model charter.
2. Passports of all founders, provided that the founders sign the application in the presence of a tax representative.
3. Receipt for payment of the duty.
4. The decision of the sole founder or the minutes of the general meeting + the agreement on the establishment (the last two documents are relevant for an LLC with several founders).
5. Application for state registration as a legal entity (form without affixed signatures).
6. Notification of the transition to the selected taxation regime (most start-up business organizations choose the "simplified" form - in 2 copies, such an application can be submitted later).
7. If one of the founders is a foreign legal entity, it is necessary to provide an extract from the register of the legal entity of the country of its origin (or an equivalent document).

The Federal Tax Service provides a special service for the formation and submission of an online application for registration with payment of state duty without a qualified electronic signature. It involves a personal visit by invitation from the tax office to sign documents. Can only form an application (without notification of the choice of the taxation regime).

When submitted by proxies

1. The company's charter in 2 copies (with the exception of activities under the standard charter).
2. Receipt / receipts for payment of the duty.
3. Agreement of foundation and minutes of the meeting (if there are several founders), or decision on founding (for a sole founder).
4. Application for state registration as a legal entity (signatures on the application must be notarized).
5. Notification of the transition to the selected taxation regime (optional).
6. Extract from the register of legal entities of the country of origin (if one of the founders is a foreign legal entity).
7. Representative's passport and power of attorney (certified by a notary).

When submitting online
There are 2 ways to submit an application remotely, the first of which is in fact reduced to a personal visit (after filling out the forms, the service generates an application and sends it to the tax office, but the founders, personally or through a representative, still appear at the Federal Tax Service at the appointed time with originals of documents), and the second implies a full-fledged electronic document management. We will consider it below.
You will need:

• Electronic versions of documents (memorandum of association and minutes of the meeting, charter, decision of the sole body on registration), originals or copies do not need to be provided.
• Enhanced qualified electronic signature (a certificate is issued only at the selected certification center, a list of valid CAs can be found on the FTS website), as well as a crypto provider and a browser plug-in. All founders must have an enhanced.
• The state duty will be paid online at one of the steps for submitting an application (a discount, unlike an individual entrepreneur, is not provided).

The notification of the transition to one or another taxation regime can be filled out in a third-party service and also invested in a crypto container. However, it can be sent to the Federal Tax Service later.

By mail

• The company's charter in 2 copies (with the exception of activities under the standard charter).
• Receipt / receipts for payment of the duty.
• Constituent document and minutes of the meeting (for LLC with several founders), or a decision to establish a sole founder.
• Application for state registration as a legal entity (signatures on the application must be notarized).
• Notification of the transition to the selected taxation regime (optional).
• Extract from the register of legal entities of the country of origin (if one of the founders is a foreign legal entity).

For the shipment, the value must be declared and an inventory of the attachments compiled. Moscow residents can use Pony Express and DHL Express services.

Important points

• The deadline for submitting a notification of the transition to the selected taxation regime is 30 days.
• When establishing an LLC, no more than 4 months are allotted for the contribution of the authorized capital (, while for certain categories of activities the minimum threshold can be significantly higher).
• The registration fee is not refundable even if the registration procedure ends with a refusal.
• The registration application is filled in either by hand (only in block letters), or typed using technical means (the use of special services is allowed). Mixed filling is prohibited (for example, when data is added to the printed version manually).
• In case of personal submission, the columns with the signature are not filled in. Signing is done by the applicant / applicants in the presence of a tax specialist. Otherwise, the signatures must be notarized.
• Each page of the application must be printed on a separate sheet. It is not necessary to fasten and stitch the sheets.
• Filling in the e-signature address is required. It is to him that documents on registration or refusal will be sent.
• The main name of LLC is allowed.
• The registering body for the charter of an LLC is the Federal Tax Service Inspectorate. It is she who issues certified originals of the current charter, takes into account the changes.
• The amount of the state fee can be divided in equal shares for all participants and paid in separate receipts.
• The FTS may require a letter of guarantee from the lessor to provide the legal address of the LLC.

Where to submit documents
LLC registration is carried out only by the tax service serving the address of the location of the executive body of the LLC.
You can clarify the number and details of the servicing inspectorate on the tax website.
If the executive body does not have a permanent address, the location of the person / other body of the legal entity may be accepted, which can act on behalf of the LLC without a power of attorney (for example, the home address of the sole founder).

In the case of registration of an LLC at a home address, you may additionally need:

• certificate of ownership of the property (certified by a notary);
• consent of tenants / co-owners to open a legal entity (certified by a notary).

Documents can be submitted through the multifunctional center (if the latter provides such a service).

Output documents
After 3 days, will send to the e-mail address (specified in the application) either a reasoned refusal, or registration documents:

• record sheet in the Unified State Register of Legal Entities (form);
• certificate with SNN of the organization;
• registered charter.

It is possible to obtain paper versions of documents only upon a separate request.