There is no point in keeping the inactive status of an individual entrepreneur, it only adds to your extra worries in the form of mandatory reporting and remittance of insurance premiums.An entrepreneur without activity or income is still obliged to pay 20, 727.53 rubles to the Pension Fund for 2014.If it so happens that your business has not lived up to expectations, or if you simply decide to suspend activities, close the sole proprietorship.When needed, you can register again very quickly at any time.
Beautiful and smart experts Elbs have prepared an instruction manual for you that will tell you what you need to do and in what time frame to close your case.
Report closings to foundations
The first thing to do when you decide to close is to notify in
Facebook Pension Fund.And if you have registered employees – then also to the Social Security Fund. Just make such a notification in the form of an official letter and send it by registered mail or take it to them personally. You can find contacts and addresses at FIU website and at FSS website
Pay off all employees and process the termination
When closing a business, it is very important to properly handle the termination of employees. You need to properly terminate their employment contracts and pay the final amounts.
By the law You must give your employees at least two months’ notice of termination. Give each employee a free-form notice in person and ask them to sign it.
Within a month, file an interim employee report with the Pension Fund.
In addition you have to give at least two weeks’ notice to the Jobcenter. There is no special form for this notice, you can make it at your own discretion. In it, inform the employer that you are closing and include each employee’s name, position, qualifications, and average salary.
After two months, employees can be terminated. If the employees agree, the employment contract can be terminated earlier, without waiting for this deadline, but with mandatory compensation in the amount of average earnings for this remaining time before dismissal.
Remember that all employees are supposed to benefit in the amount of the average monthly earnings. Don’t forget to pay it on the day of termination.
It’s no secret that most layoffs are at will. In your case, this option is less beneficial to the employee because you do not have to pay them severance pay. If you and your employees agree to process the termination this way, it should be done before you notify the funds of the closing.
The last reports to the FIU and FSS for employees must be filed before you submit the paperwork to the IRS for closing. After the reports are filed, you will have 15 days to pay all insurance premiums.
When all employees are laid off and you have paid your premiums, you need to deregister with the FSS : file application and attach a copy of the last employee’s termination order. Within two weeks, you will be removed from the records as an employer.
You do not have to worry about the Pension Fund, the tax office has to send a notification when you close and you will be automatically de-registered.
Pay the sole proprietor’s fees for yourself
You have the right to pay your insurance premiums within 15 days after the date you close your sole proprietorship. But when submitting documents to the tax office for closing, you may encounter an inspector who will insist that you pay the premiums and ask for a certificate of absence of arrears from the Pension Fund. Be aware that Such a requirement of the inspector is unlawful , you can safely recommend reading law 212-FZ
However, it may be advantageous for yourself to pay all the contributions at once before filing. After all, they can be used to reduce the UST "Income" and UTII tax, if you report before liquidation. Be prepared for some inconvenience in calculating the amount of contributions: they must be calculated from the beginning of the year to the date of closure of the IE, which of course you will not be able to determine in advance. If you overpay the contributions, you can then apply to the Pension Fund for a refund.
List all taxes and file your returns
With taxes there is a similar situation. It is possible to finally settle accounts with the tax authorities after the liquidation of the sole proprietorship, but many inspectorates recommend that all debts be closed and reported before documents are submitted for closure.
But still, be aware of the deadlines. Pay the USN tax and submit a report no later than the 25th day of the month following the date of closure of the IE
If you apply UTII, you first need to file an application with the tax office to deregister from the form ENVD-4 and then submit the UTII report itself and pay the tax. By law, you can report up to 20 day of the month following the quarter, and pay tax by 25 day of the same month.
Close the current account and deregister the cash equipment
When all payments from clients have been received and the necessary payments have been made, apply to your bank to close the current account. You will not have to notify anyone about closing the account, this obligation has been removed since May 2014.
If you have a cash register, you must deregister it from the tax office. To do this, provide the inspectorate with the :
- statement ;
- passport of a cash register;
- the registration card that the tax office gave you when registering it.
You can bring the documents in person or send them by registered mail. Within 5 working days your cash register will be deregistered.
Submit paperwork to the tax office to close your sole proprietorship
You will need to pay the state duty for closing of IE – 160 rubles. You can do this at any Sberbank branch. For convenience, you can prepare a receipt for payment in advance at FTS website
Then fill out a statement for the IRS on the form R26001 It’s simple enough and usually doesn’t cause any difficulties. If you submit the documents in person, you will not have to have the application notarized.
Contact your tax registration office and ask about office hours. There are inspection contacts at FTS website Take with you your passport, a receipt for payment of the state duty and the application. Sign the application in the presence of the inspector.
Closing documents can also be sent by official mail with the list of attachments, but then you will need to notarize the application and a copy of your passport.
You will be given a receipt for the documents. Within 5 working days you will be closed, the information will be entered into the state register and the certificate of closing of IE will be provided.
When is it okay to throw away documents?
The IRS has the right to conduct an on-site tax audit for the last three years of your employment (not counting the year in which the audit will be conducted). Keep for this period of time all tax returns, bank and cash documents, primary (contracts, certificates, invoices) and all registration documents of the individual entrepreneur. From experience I should note a positive trend – the IE is rarely checked after liquidation. We hope that this will not affect you, but still – keep the documents at least 4 years.
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