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First steps to own business: instruction

The first thing you need to think about before registering your business is its organizational and legal form. The law offers two: an individual entrepreneur (PI) and a legal entity (LE). The form in this case directly determines the content of the activity.
If your goal is small trade, work and services that you will carry out on your own or with a small number of hired employees, or this is freelance, then the PI format will suit you. If you are planning a large business with serious prospects, it is better to organize a legal entity – LLC or JSC.
Dictionary
Individual entrepreneur – a citizen engaged in entrepreneurial activities without forming a legal entity.
Legal entity – an organization that has separate property and is responsible for their obligations. As a rule, it is created to unite several persons or companies, each of which contributes money or other property to the authorized capital. UL can be created by one person.
A limited liability company is an economic company whose authorized capital is divided into shares of participants. The LLC participants are responsible and receive dividends within their shares.
Joint-stock company is a business company whose authorized capital is divided into a certain number of shares. AO members are responsible within the value of their shares. AOs are divided into public and non-public. Difference: in non-public joint-stock companies, shares are distributed only between their shareholders. For the sale of shares to third parties requires the consent of all members of non-public JSC. In public JSC shares are in open circulation on the market.
The similarity between LLC and JSC is that profits and risks are distributed in proportion to the shares or value of shares in the share capital, and here are the differences:
1. If the selected form of PI
The legal name of the company is named by the name and initials of the individual founder. For example – IP Petrov S. M. For individualization and recognition, an entrepreneur can register a trademark. Or come up with a commercial designation.
2. If the form of a legal entity is chosen
A firm may have an abstract name that is not related to the name of the founder. In this case, next to the name must indicate the organizational and legal form. For example – Rassvet Limited Liability Company.
When choosing a name for a legal entity, it is necessary to take into account an important nuance: it must be unique. Similarity or coincidence with the name of another legal entity engaged in similar activities and already listed in the Unified State Register of Companies is not allowed.
3. The choice of location
When registering both the individual entrepreneur and the legal entity, it is necessary to indicate the address where you can contact the company.
The place of registration of an IP is the address of the residence (temporary registration) of the natural person-founder.
For legal entities, the term “location of a legal entity” is used – a settlement or municipality in which the company is registered. The registration address of the LE is the address where its head is located. This can be either the home address of the manager or the office address.
If you plan to rent an office for your company, then at registration you will need to provide a guarantee letter from the owner of the premises.
In the application for registration of a company, its type of activity is indicated in the form of the OKVED code. Codes are combined into groups. If you specify a group of codes, you will have the right to engage in all the activities included in it; If you select a specific code from a group, you can only perform one kind of activity.
When choosing codes, please note that some activities are subject to mandatory licensing. And if you plan to use the simplified taxation system, make sure that the activity codes you select allow this. Do not choose the codes “just in case” – the extra activities assigned to your business can lead to an increase in payments to the Social Insurance Fund.
5. Registration
So we got to the registration. To register a company, you must submit the appropriate application and a package of documents to the tax office. Documents can be provided:
personally;
through a representative of a notarized power of attorney;
by mail with declared value and investment inventory;
in electronic form via the FTS website.
Personal submission of documents and having a passport with you will relieve you of the need to notarize his copy and signature on the application.
If everything is in order with the documents, the enterprise will be registered in 3 days.

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