Registering an IP is a responsible step. The future entrepreneur needs to carefully weigh all the pros and cons, determining a profitable taxation system, understanding the reporting and finding out his rights and obligations.
Beginning businessmen often make annoying mistakes. We will talk about them below. This information will help you avoid trouble and financial loss.
IP registration without checking the business idea
Sometimes we get so excited about some idea that we simply don’t want to see the pitfalls and ignore all possible risks. And if we are talking about business, then any rash step can be fraught with serious problems. Without foreseeing all the risks, a novice businessman can quickly go bankrupt.
It should be understood that any individual entrepreneur must regularly pay fixed contributions to health and pension insurance. It doesn’t matter if he has income or not. In 2021, the annual amount of such a contribution is about 41 thousand rubles.
Accordingly, before registering an individual entrepreneur, you should make sure that the business idea will work, bringing a stable income. Naturally, it is impossible to predict the success of an undertaking, but market analysis will allow you to understand in general terms how correct the chosen direction was.
Experienced businessmen are advised to register as self-employed to test the idea. In this case, the entrepreneur will be able to make sure that the business brings returns, subsequently switching to individual entrepreneurs.
Overpayment due to incorrectly chosen tax regime
When registering an individual entrepreneur, the future businessman must decide on the payment of taxes. In this case, the following considerations should be taken into account:
- With a large amount of expenses, it is best to choose the simplified tax system “income minus expenses”. In this case, the entrepreneur will pay 15% of the profit.
- If there are few expenses, then the best option would be the simplified tax system “income”, in which the entrepreneur pays only 6% of the total revenue.
- In some cases, it will be more profitable to acquire a patent.
If we talk about the general rules for choosing a taxation system, then the following recommendations should be followed:
- We check whether the UTII and the patent are suitable for the chosen field of activity.
- If the patent and UTII are suitable, then the next step is to check the restrictions on these special regimes. So, on a patent you cannot hire more than 15 employees, with UTII the limit is 100 people.
- If an entrepreneur cannot work on a patent and UTII, then he should choose the simplified tax system. In this case, two options are possible: an individual entrepreneur pays taxes on income or on income after deducting expenses. If the amount of expenses is more than 60% of income, then it is best to choose the “income minus expenses” system. It should be remembered that simplified work has its limitations.
- Working in agriculture, an entrepreneur can use the ESHN (single agricultural tax).
- If none of the above is suitable for an entrepreneur, or he plans to work with companies that use VAT, he should choose a general taxation system.
Do not reduce tax on the amount of contributions
Working on a patent or simplified tax system, an individual entrepreneur can reduce the tax on the amount of insurance premiums. To do this, he will need to pay contributions in advance, before paying tax, and not at the end of the year. Thus, having paid contributions for 40 thousand, the entrepreneur will be able to reduce tax payments by this amount.
Russian entrepreneurs pay personal income tax, VAT and personal income tax. The totality of these payments is included in the general system of taxation. However, there are special regimes in which the above taxes are replaced by others.
One of these special regimes is the simplified taxation system or STS. Working on the simplified tax system, the entrepreneur does not pay VAT and personal income tax. He pays only one tax. Moreover, the amount from which it is calculated is called the tax base. The percentage on the basis of which the amount of tax is calculated is called the tax rate.
In addition to taxes, entrepreneurs pay mandatory insurance premiums. Moreover, if the individual entrepreneur does not have employees, then he will have to pay only for himself. In this case, the established minimum is paid, which has already been discussed above. It is divided into two parts: compulsory medical and pension insurance.
Error when buying a patent
Doing business on a patent is very convenient. In this case, the entrepreneur does not have to calculate taxes and deal with the submission of a declaration. All that is required of him is to pay a fixed amount. After that, you can proceed with the activity.
And here it is very important not to make a mistake in the form of a patent, since its value depends on the place and type of work. For example, if you acquire a patent in Saratov, and conduct business in the capital, you can fall out of favor with the tax authorities, who simply cancel the patent, recognizing the individual entrepreneur as working on a general taxation system. This, in turn, is associated with high taxes and paperwork. Therefore, you should carefully consider the procedure for acquiring a patent.
Mixing personal and business money
Individual entrepreneurs can spend the money they earn as they see fit. In the Russian Federation, there are even banks offering cards for spending directly from a current account. Moreover, there are no transfer fees.
However, from a financial point of view, such actions are dangerous. Suppose an entrepreneur earned 100 thousand rubles, and then spent them on personal needs. A week has passed and he has no funds to buy raw materials. Therefore, it is better to keep accounts, avoiding such situations. Experienced entrepreneurs advise spending the money earned only after all the necessary expenses have been repaid.
Do not use online checkout
Previously, individual entrepreneurs without employees were allowed to work without an online cash register. However, since July last year, it will be required for all individual entrepreneurs who receive money from individuals. And it does not matter how the payment is made: in cash, by card or by receipt to a bank account. According to the new rules, all entrepreneurs need an online cash register.
There are only a few activities for which exemptions apply. We are talking about trading in the market from open stalls or renting out your own residential property. Also, persons working in a special regime as self-employed may not use the online cash desk.
Entrepreneurs working on a non-cash basis with a business are not required to use an online cash register. But if at least one IP client is an individual, then the use of an online cash register is mandatory.
Misunderstanding what counts as income
From the moment of registration of an individual entrepreneur, an entrepreneur receives a number of responsibilities. Running a legal business involves paying taxes. And the businessman will have to count them on his own. Therefore, it is very important not only to understand the terminology, but also to know how all the necessary calculations are carried out.
For example, in a situation where the tax is directly dependent on income, you should understand what exactly is considered income. Suppose an entrepreneur has connected acquiring. Accordingly, money will be credited to his current account after deducting the commission for this service. However, the entire amount of the sale should be considered income.
In practice, many entrepreneurs do not know how much tax should be paid. Many businessmen choose a taxation system that deducts expenses from income. These are the options:
- BASIC. This is a general taxation system that involves the payment of taxes on income from profits. In this case, a professional deduction is used. Accordingly, tax at a rate of 13% is charged only on the difference. The commissions of banks, aggregators and payment services can reduce taxable income.
- USN “Income minus expenses”. When working in this mode, tax is also paid on the difference, while expenses are documented and taken into account in the calculation. Bank commissions in this case should be considered as expenses.
You can determine the taxation system even before registration and the immediate start of activity. Moreover, you can change the object of taxation annually. For example, by switching from the simplified tax system “Income” to “Income minus expenses”. Also, an entrepreneur can completely abandon the simplified tax system, paying personal income tax, etc. There are many options.
Do not notify Rospotrebnadzor of the start of work
Starting an activity, a new business is obliged to inform the local department of Rospotrebnadzor about itself. This rule is fixed at the legislative level, and if the entrepreneur ignores it, he will receive a fine of 3-5 thousand rubles.
You can send a notification to Rospotrebnadzor in the following ways:
- bring in person to the department;
- send through the public services portal;
- send by mail;
- transfer through any branch of the MFC.
A sample notification can be downloaded from the official website of Rospotrebnadzor. If the entrepreneur wants to submit the document in person, if the downloaded form should be printed out and filled out by hand. Unfortunately, many entrepreneurs forget about this rule and get fined.
