Individual entrepreneur: activity of an individual
A sole proprietor is not a separate legal entity. He acts on his own behalf and is liable for business obligations with his property.
LLC: separate structure
An LLC is appropriate when you need shares, multiple members, a director, corporate rules, and a separate legal entity. Constituent documents and powers are agreed upon before registration.
What questions to ask yourself
- will there be partners and investors;
- what contractual and financial risks arise;
- whether a sale of a share or a change of director is necessary;
- what are the activities, clients and expected turnover;
- Which tax statuses are checked separately.
Registration and taxes - different stages
Neither the registration of an individual entrepreneur nor the registration of an LLC automatically determines the optimal tax regime. Tax actions are assessed on actual activity after selecting the form.
Important
The material is for general informational purposes only. Requirements and facts are verified as of the date of application using official sources and your documents.