How to cash out your profit
One of the most significant advantages of an individual entrepreneur is the easy withdrawal of profit compared to organizations. But here there are subtleties. We will talk about them in a new article
All money in the account of the entrepreneur is his property
This means that the individual entrepreneur should not ask someone for permission or somehow draw up a profit withdrawal. At any time, he can:
withdraw cash from your account and spend at your discretion for any needs. But banks charge a commission for withdrawing cash, it depends on the bank, on the tariff and on the amount withdrawn;
transfer money to your individual bank account;
pay with a card tied to an account. This is more profitable than withdrawing cash, because in this case there will be no commission.
The main thing is to pay income tax in accordance with its taxation system and observe precautions in accordance with Law 115-FZ so as not to block the account, more on that below.
You can withdraw money even before tax, in this no one limits the entrepreneur.
SP on USN 6% to the current account received from the client 100 thousand rubles, from them he will have to pay 6 thousand tax. But he can spend all 100 thousand of income as he wants and when he wants, at least on the day of receipt, only when the time comes to pay tax or an advance payment, 6 thousand must be paid to the budget at all costs.
Therefore, it is better to ensure that there is always money left on the account for paying taxes (as well as salaries, insurance premiums, settlements with suppliers and other obligations) so that you do not have to look for money for this later. No one except the entrepreneur will control such things.
Some start-up entrepreneurs have a question: is it necessary, in addition to the main tax, to pay additional personal income tax on money withdrawn for own needs? No, an entrepreneur pays a business income tax once. This LLC first pays income tax as a legal entity, and then the founders once again pay personal income tax as an individual when they bring profit to their personal disposal. Entrepreneurs are getting easier and more profitable.
Law 115-ФЗ “On counteracting the legalization (laundering) of proceeds of crime and the financing of terrorism” is aimed at combating illegal incomes, but respectable entrepreneurs have to reckon with it.
If the cash withdrawal operation seems suspicious to the bank, it may request explanatory documents, refuse to conduct the operation, suspend account operations or even offer to close the account.
Any cash withdrawal may be considered as a dubious operation, if it is not connected with the payment of wages, benefits, the purchase of office supplies and household expenses.
In order not to cause suspicion, it is better not to withdraw money from the account without urgent need. Now almost everything can be paid with a card, so it’s better to do so, because when paying with a card, the bank sees where and what you are paying for. So there are less suspicions, and you do not need to pay a commission for withdrawing cash. But the fate of the withdrawn cash is not known to the bank, therefore it is easier to get under suspicion.
But if you need cash, so as not to arouse suspicion, do not remove everything at once. If you received a large amount of money into your account and you immediately withdrew everything in cash – the suspension of operations is almost guaranteed. The risk is even greater if the money was transferred by a new and dubious counterparty. Allow the money to “lie down” for at least a day or two, and then shoot in parts.
Keep receipts and other documents for large cash purchases. You will need them if the bank asks you to confirm expenses.
If the bank has questions, do not stand on its hind legs, but calmly provide all the information that is being asked of you. You can consult with a bank employee in advance if this or that operation will arouse suspicion. So the bank will see that you are not a dark horse, but an ordinary respectable businessman, ready for dialogue and with pure intentions.
In no case do not “jump” from bank to bank, opening all new accounts and closing or simply throwing blocked ones without settling the issue with the bank. You need to ask for the reasons for the refusal or block, give explanations and remove suspicions. Otherwise, this tail will follow you, for banks you will have a high level of risk, problems will arise more often. Where another entrepreneur’s operation goes without hesitation, you will have questions.
To summarize: according to the law, IPs are free to withdraw cash from their account, but you need to ensure that there is money left to fulfill obligations, to take precautions to avoid blocking under 115-ФЗ.