Does the individual entrepreneurship or self-employment format suit you?

The formats of individual entrepreneur (IE) and self-employment have their own features, and the choice depends on specific conditions and goals.

Self-employment:

• Suitable for freelancers, consultants, small volumes of work.
• Simplified tax system (professional income tax of 4% or 6%).
• No need to keep accounting records and submit reports.
• Restrictions on types of activities and maximum income (in Russia — up to 2.4 million rubles per year).

IE:

• Suitable for more extensive activities, with the possibility of hiring employees.
• Different tax systems can be chosen (USN, OSNO, etc.).
• Requires maintaining accounting records and submitting reports.
• No restrictions on types of activities and income.

If your activity is small, you do not plan to hire employees, and you want to minimize bureaucracy — self-employment may be more convenient. If you plan to expand, work with legal entities on a regular basis, or engage in types of activities not covered by self-employment — it is better to register as an IE.