Who is an individual entrepreneur and who is this status suitable for?

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An individual entrepreneur is an individual who conducts business activities without creating a legal entity. This means that the individual entrepreneur and his business are one and the same. In many ways, this is convenient: for example, money from the sale of goods or services can be used for personal purposes immediately after you have received payment. But in the event of debts or bankruptcy, you will have to answer with your own property.

Individual entrepreneur status is often chosen by those who are just kuwait telegram mobile phone number list starting to run a business. This option provides the following advantages:

Simple registration - no need for the organization's charter, the founder's decision, a letter of guarantee for the provision of a legal address and other documents that are necessary for the creation of an LLC
Accounting is not required - sole proprietors do not have to keep detailed records of cash flow; in most cases, it is enough to file an income tax return once a year
Quick liquidation - closing an individual entrepreneur is as easy as opening one: just submit an application
There is no need to hire employees - the law does not prohibit being an individual entrepreneur without employees
In Russia, it is not always possible to do business as an individual entrepreneur. Some types of activities are prohibited for individual entrepreneurs: for example, the production of alcoholic beverages, passenger air transportation, banking services. If you plan to do business in one of these areas, you need to register a legal entity.

The state defines the activity of an individual entrepreneur by the OKVED code - the All-Russian Classifier of Types of Economic Activity . In it, all business areas are designated by numbers. For example, 10.20.1 is fish processing and canning, and 31.02.1 is kitchen furniture production.