How is the PI different from LLC?

Wanting to open a business, an entrepreneurhe will certainly think about the form of organization of his business: an individual entrepreneur, a limited liability company, a joint-stock company, a partnership or a cooperative. Quite often people start to do business with IP or LLC. But why some choose PI, and others LLC. Everywhere there are pluses and minuses, therefore it is necessary to make a choice especially individually.

• How does a PI differ from an LLC in terms of degreeresponsibility of the enterprise to creditors. For all obligations, the IP will be liable to its creditors with all its assets. And those who establish LLC are liable only for their capital for the losses of the organization, they do not risk personal property. The authorized capital can be a sum of money from 10,000 rubles or tangible assets of the same value. But I want to note here that the administrative responsibility of the IP is lower than that of LLC.
• When registering a PI differs from LLC by the amountcosts. The state fee for registering IP is 800 rubles, and to open the company you need 4.000 rubles and the authorized capital (minimum 10,000 rubles, but it can be represented by the equipment of the enterprise).
• Individual entrepreneur is freedisposes of the proceeds of his business. And in the company founders have the opportunity to receive dividends from the business only once a quarter after taxes are paid.
• When the firm closes, thethe founders of the LLC than the individual entrepreneur. The LLC makes a decision to liquidate the organization, sends this message to the tax office, then the decision is published in the local newspaper. Also, creditors are notified, if they exist, on-site inspection of tax authorities, the surrender of the interim liquidation balance, and finally the liquidation balance itself. And you can close the IP only by writing an application to the tax office.