When to register a startup?
I greet the venerable Habrazhiteley! The very first problem that a novice entrepreneur faces in Russia is total bureaucracy and confusion between government and business. As a result, a paradoxical situation arises when the question of the period of state registration of an enterprise acquires no less importance than the technical details of the project. Under the cut, I will talk about the stages of development of a startup in terms of the feasibility of registering a business.
We started to solve the issue of registration as a legal entity one of the first, since it was a logical desire from the very first days to work officially, effecting cash flow through the accounting department. To create a legal entity is currently not a problem and we were already half way to our goal, when, literally several days before paying the state duty, we again asked ourselves the main question of an entrepreneur: “Why?”. Set not by chance. At the last moment, it turned out that we would not be able to receive financing in full, and therefore we had to urgently delete all minor expenses. It was a good lesson for us. If our previous logic was based on the concepts of “right and wrong” and “good-bad”, then after the experienced financial failure we began to be guided by the principles of profitability of any investment. As it turned out, the opening of a legal entity is not always a profitable and necessary decision.
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Any commercial activity implies spending not only on the production and sale of products, but also on providing the necessary conditions for this. Startups at the beginning of their journey have to work on their own project for a long time under the most severe financial constraints, when every penny is invested exclusively in the project itself. Is it profitable at this time to register your business? Let us drop the emotions and consider the costs when working as a legal entity (here you can, with reservations, add an IE) and an illegal entrepreneur.
Activity as a legal entity implies costs, which can be divided into three categories:
1. One-time costs when creating a legal entity. They usually make up 10-15 thousand rubles. This is the smallest cost category.
2. Recurring costs for maintaining an account, an accountant, renting a legal address, cash equipment, etc. This also includes tax payments. The minimum monthly amount hovers around a few thousand.
3. Expenses for repayment of fines and penalties. This category also includes bribes and kickbacks. This item of expenditure is often forgotten; many believe that they will be able to conduct business without violation and corresponding consequences. In fact, this is rarely possible even with initially honest intentions.
But what about individuals? In illegal business activities, the first two points are completely absent, but as a counterweight, the prospect of administrative and criminal liability is added.
Thus, the best time to register your own business comes at a time when the amount of potential costs of fines and bribes, multiplied by the probability of being caught, exceeds the amount of one-time, regular and penalties (multiplied by the probability of occurrence) of deductions to the state.
The history of any startup in terms of the expediency of registering a business can be divided into three stages: from idea to return of invested funds, from return of invested funds to income of 1.5 million rubles and from 1.5 million rubles to happy infinity. Consider each of the stages.
Indeed, what is “entrepreneurship”? The Civil Code of the Russian Federation gives a completely monosyllabic answer to this. “Entrepreneurial activity is an independent activity carried out at one's own risk, aimed at systematically receiving profits from the use of property, the sale of goods, the performance of services.” Pay attention to the words "systematic" and "profit." The fact that you were able to sell your development once did not make you an entrepreneur. Monthly sales per million rubles also do not make you an entrepreneur, if the cost of production is one million rubles and one penny.
This, by the way, is a weighty reason to keep a strict accounting department always, regardless of your state registration. In the event that you are accused of illegal business activities, the saved documentary evidence of expenses will play you a good service.
Consequently, any activity at the stage “from the idea to the receipt of the first money” is not entrepreneurial and it is not necessary to register it. The meaning of registration appears only after the project starts to generate regular income, and even then, such registration is needed only to increase customer confidence and the lack of reasons to initiate an article on administrative offense.
If you register an enterprise at the idea stage, then you spend additional money, which will then form the price of your goods. And if you yourself lower the competitiveness of your products, then forgive me, you are not an entrepreneur.
So, here is your project already out returned your invested funds. You are happy to note that you already have money every month, but your income does not exceed 1.5 million rubles. Should I register my case now?
In the absence of registration, according to Part 1 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, you will be required to pay after each inspection of the police, tax, FAS, Rospotrebnadzor and prosecutor's checks from 500 to 2000 rubles. In the case, if the magistrate does not have time to consider your case within three months, you are completely exempted from liability (the judge will order the termination of the proceedings on the case of an administrative offense).
Tax sanctions are significantly higher (Art. 116,117 of the Tax Code): a fine of 20 percent of the income received, but not less than 40 thousand rubles, or a fine of 10,000 rubles for violation of the registration deadline in the inspection (if the activity was conducted at least three months, the amount of the fine is halved). In addition to the fine, inspectors have the right to charge unpaid taxes, as well as to oblige to pay a fine for their late payment.
As you can see, it is most profitable to register your own enterprise at the beginning of this stage or shortly before it. The funds that you spend on registration are significantly less than the amount that you can recover from you in the form of a fine.
If your income is from 1.5 million rubles. up to 6 million rubles. and you still have not registered your company, then, according to Art. 171 of the Criminal Code of the Russian Federation, you risk getting a "fine of up to 300 thousand rubles. or in the amount of the salary (other income) of the convicted person for a period of up to two years, or compulsory work for a period of 180 to 240 hours, or arrest for a term of four to six months. ”
For income over a million should be "a fine of 100 to 500 thousand rubles. or in the amount of salary (other income) of the convict for a period from one to three years, or imprisonment for up to five years with a fine of up to 80 thousand rubles. or in the amount of the salary (other income) of the convict for a period of up to six months. "
In other words, if your project allowed you to earn more than a quarter of a million and you still haven't bothered to register your own business, then you are a very risky person. However, in practice, it is rather difficult to prove your guilt, most often such cases are found during the investigation of cases on the legalization of proceeds from crime. Moreover, if you are brought to criminal liability for the first time, neighbors and colleagues at work positively speak about you, then, most likely, you will be awarded only a fine.
PS All specified numbers depend on the current edition of the laws and are subject to change upon approval of new editions
What is “good” and what is “profitable”
We started to solve the issue of registration as a legal entity one of the first, since it was a logical desire from the very first days to work officially, effecting cash flow through the accounting department. To create a legal entity is currently not a problem and we were already half way to our goal, when, literally several days before paying the state duty, we again asked ourselves the main question of an entrepreneur: “Why?”. Set not by chance. At the last moment, it turned out that we would not be able to receive financing in full, and therefore we had to urgently delete all minor expenses. It was a good lesson for us. If our previous logic was based on the concepts of “right and wrong” and “good-bad”, then after the experienced financial failure we began to be guided by the principles of profitability of any investment. As it turned out, the opening of a legal entity is not always a profitable and necessary decision.
')
Issue price
Any commercial activity implies spending not only on the production and sale of products, but also on providing the necessary conditions for this. Startups at the beginning of their journey have to work on their own project for a long time under the most severe financial constraints, when every penny is invested exclusively in the project itself. Is it profitable at this time to register your business? Let us drop the emotions and consider the costs when working as a legal entity (here you can, with reservations, add an IE) and an illegal entrepreneur.
Activity as a legal entity implies costs, which can be divided into three categories:
1. One-time costs when creating a legal entity. They usually make up 10-15 thousand rubles. This is the smallest cost category.
2. Recurring costs for maintaining an account, an accountant, renting a legal address, cash equipment, etc. This also includes tax payments. The minimum monthly amount hovers around a few thousand.
3. Expenses for repayment of fines and penalties. This category also includes bribes and kickbacks. This item of expenditure is often forgotten; many believe that they will be able to conduct business without violation and corresponding consequences. In fact, this is rarely possible even with initially honest intentions.
But what about individuals? In illegal business activities, the first two points are completely absent, but as a counterweight, the prospect of administrative and criminal liability is added.
Thus, the best time to register your own business comes at a time when the amount of potential costs of fines and bribes, multiplied by the probability of being caught, exceeds the amount of one-time, regular and penalties (multiplied by the probability of occurrence) of deductions to the state.
The history of any startup in terms of the expediency of registering a business can be divided into three stages: from idea to return of invested funds, from return of invested funds to income of 1.5 million rubles and from 1.5 million rubles to happy infinity. Consider each of the stages.
Stage 1. You are not an entrepreneur
Indeed, what is “entrepreneurship”? The Civil Code of the Russian Federation gives a completely monosyllabic answer to this. “Entrepreneurial activity is an independent activity carried out at one's own risk, aimed at systematically receiving profits from the use of property, the sale of goods, the performance of services.” Pay attention to the words "systematic" and "profit." The fact that you were able to sell your development once did not make you an entrepreneur. Monthly sales per million rubles also do not make you an entrepreneur, if the cost of production is one million rubles and one penny.
This, by the way, is a weighty reason to keep a strict accounting department always, regardless of your state registration. In the event that you are accused of illegal business activities, the saved documentary evidence of expenses will play you a good service.
Consequently, any activity at the stage “from the idea to the receipt of the first money” is not entrepreneurial and it is not necessary to register it. The meaning of registration appears only after the project starts to generate regular income, and even then, such registration is needed only to increase customer confidence and the lack of reasons to initiate an article on administrative offense.
If you register an enterprise at the idea stage, then you spend additional money, which will then form the price of your goods. And if you yourself lower the competitiveness of your products, then forgive me, you are not an entrepreneur.
Stage 2. We count money
So, here is your project already out returned your invested funds. You are happy to note that you already have money every month, but your income does not exceed 1.5 million rubles. Should I register my case now?
In the absence of registration, according to Part 1 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, you will be required to pay after each inspection of the police, tax, FAS, Rospotrebnadzor and prosecutor's checks from 500 to 2000 rubles. In the case, if the magistrate does not have time to consider your case within three months, you are completely exempted from liability (the judge will order the termination of the proceedings on the case of an administrative offense).
Tax sanctions are significantly higher (Art. 116,117 of the Tax Code): a fine of 20 percent of the income received, but not less than 40 thousand rubles, or a fine of 10,000 rubles for violation of the registration deadline in the inspection (if the activity was conducted at least three months, the amount of the fine is halved). In addition to the fine, inspectors have the right to charge unpaid taxes, as well as to oblige to pay a fine for their late payment.
As you can see, it is most profitable to register your own enterprise at the beginning of this stage or shortly before it. The funds that you spend on registration are significantly less than the amount that you can recover from you in the form of a fine.
Stage 3. I also love to take risks!
If your income is from 1.5 million rubles. up to 6 million rubles. and you still have not registered your company, then, according to Art. 171 of the Criminal Code of the Russian Federation, you risk getting a "fine of up to 300 thousand rubles. or in the amount of the salary (other income) of the convicted person for a period of up to two years, or compulsory work for a period of 180 to 240 hours, or arrest for a term of four to six months. ”
For income over a million should be "a fine of 100 to 500 thousand rubles. or in the amount of salary (other income) of the convict for a period from one to three years, or imprisonment for up to five years with a fine of up to 80 thousand rubles. or in the amount of the salary (other income) of the convict for a period of up to six months. "
In other words, if your project allowed you to earn more than a quarter of a million and you still haven't bothered to register your own business, then you are a very risky person. However, in practice, it is rather difficult to prove your guilt, most often such cases are found during the investigation of cases on the legalization of proceeds from crime. Moreover, if you are brought to criminal liability for the first time, neighbors and colleagues at work positively speak about you, then, most likely, you will be awarded only a fine.
PS All specified numbers depend on the current edition of the laws and are subject to change upon approval of new editions
Source: https://habr.com/ru/post/207106/
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