What is the difference between a limited partnership and a sole proprietorship? Which bank to choose for your company

What is the difference between a limited partnership and a sole proprietorship? Which bank to choose for your company.

What is the difference between a limited partnership and a sole proprietorship? Which bank to choose for your company

Which one really helps.

As a rule, banks do not like to work with individual entrepreneurs: they either make the fees more flexible or refuse to open a bank account.

The lack of adequate bank support also hurts small businesses. To solve your problem, you have to spend a lot of time waiting in queues and talking to employees.

Why is it so? It is that an individual company has great risks with a rather small volume of business. The bank compensates possible losses with high commissions. Also, many dubious schemes involve collecting money with the help of an individual company. The bank tries to cut off those companies at the registration stage.

Only honest businessmen are targeted. What do we do? Form a limited company or go into hiding?

This requires a bit of education.

What is the difference between an LLC and a sole proprietorship? What is more profitable?

In Russia, unregistered business activity is illegal. Yes, you can get rid of a small fine, but if the turnover of your company exceeds 1,500,000 rubles, you will be criminally liable. It is not our choice.

So you have to form a company. And in what way?

Let’s put aside all HOAs, non-profit organizations and other legal forms. In reality, you have to choose between a Limited Liability Company (LLC) and a Sole Proprietorship (PI). Both have their advantages and disadvantages. Let’s go to the top:

general differences

IP: In fact, a sole proprietorship is a natural person with a “business license”.

LTD: It is a legal entity, a kind of “separate person” with its own assets and responsibilities. Transactions are made on behalf of this person.

Incorporation cost

IE: The state fee for registering an individual company is 800 rubles. You request it from the Tax Agency and that’s it, welcome to the small business.

LTD: You will have to pay 4,000 rubles to form a limited company. But getting the correct paperwork is a real hassle and you may have to resort to lawyers and notaries.

Taxes and contributions

Individual entrepreneurs usually work under the simplified tax regime (STS). An LTD can also qualify for this system if it earns less than 60 million rubles a year, so let’s take that as a comparison.

IE: With the same income and expenses, you will get more “your” money through a sole proprietorship than through an LLC. After all, the after-tax balance is owned by the entrepreneur. You can dispose of this money however you want.

An individual entrepreneur is obliged by the State to pay the pension fund an amount linked to the minimum wage. Now it is 23,153.33 rubles. If an entrepreneur has an income of more than 300,000 rubles a month, he must also put 1% of this amount into the pension fund.

LTD: The money in a limited liability company account is owned by the legal entity and when it is transferred to the owner’s account (as dividends or in the form of salary), you also have to pay 13% income tax on the Physical persons.

And as for the contributions of funds, it is still more profitable to open a company in the form of an LLC and be its sole founder. Then you can simply distribute the profits in your favor, pay personal income tax and not make any contributions. The situation changes if you receive an official salary in the same company: 30% of the salary goes to various funds.

Responsibility

LTD: We all know that the liability of a legal entity is limited to its assets. That is, in case something happens, the founders will only lose the funds they have invested. But really it’s not so. If the bankruptcy turns out to be deliberate, they may be held liable, even criminally.

IE: A sole proprietorship is responsible for all of their wealth, which scares a lot of people. But a sole proprietorship is always at risk. Scratch someone’s Lexus out of the driveway? Go ahead, pay the damage. Be more careful and you’ll be fine. It is the same situation with a sole proprietorship. If there are no questionable transactions or large debts, there is no problem.

It turns out that working as an individual entrepreneur is more profitable in terms of distributing funds and paperwork. It’s time to decide which bank to open a checking account with.

How the Dot Rescues Sole Proprietors

Dot, remember?

It is not enough to be a bank that does not get in the way of entrepreneurs. Small businesses need to be supported. Punto (part of Otkritie FG) is exactly the kind of person to help.

It is a bank totally oriented towards businessmen, who attends to them remotely. They do not have sales offices, nor bulky staff. That’s why Tochka can afford such low rates.

This is what the bank offers to aspiring entrepreneurs:

Open a current account without complications

You can open an account at Tochka Bank in 40 minutes. You don’t have to go anywhere: bank employees will come by themselves at any time convenient for them. Internet banking and the corporate card will start working immediately.

No queues or paperwork. That is what customer centricity means.

“Transparent” security work

Yes, your IP will be checked before opening an account. All banks do. But not everyone motivates their decision in case of rejection. Let alone review it if the problem is resolved.

The point is one of them. The bank team will not silently freeze your account, but will inform you of potential tax lock-ups and teach you how to do “white-collar” business.

Internet banking for companies

Point offers a great customer bank and an equally functional mobile app. And to connect through a browser, you don’t have to frantically search for a machine with Internet Explorer installed, you can use Safari, Chrome or any other.

Payments between the Point client and other banks run from 00.00 to 21.00 Moscow time. That’s almost a full day.

full integration

As we have said before, it is not a matter of principle that the client bank which browser to use to start the session. This is also true for the mobile platform: iOS, Android – whatever.

Money is always at your fingertips.

A corporate card linked to a company account is delivered immediately. Money can be withdrawn from any of the ATMs of the Otkritie Financial Group (which includes Tochka). You can issue as many cards as you want and set a limit for each one.

Adequate customer service

Here’s a real attitude helps. It is not coordinated with superiors or transferred to another person. The subject matter specialist will tell you everything at once. They don’t have a fixed talk time, so until they solve your problem, they don’t hang up. Do not hesitate to ask for any detail.

Even for individual transactions, like currency transactions, you can have a personal assistant answer all your questions.

Point – What small businesses have been missing. The bank really cares. At Tochka they can help you register a sole proprietorship, calculate your taxes and file your accounts.

So why spend extra money on external accountants and advisors when you can go to the bank where you already have an account?

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