Taxation in network marketing. Features of organizing an MLM company

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Network marketing has become an integral part of the business life of society. The legality of MLM is indisputable, and earnings from network business, like income from any other commercial activity, are subject to state taxation.

Basics of Multi-Level Marketing Taxation
Many people doubt whether it is worth going into network business, assuming that they will need to obtain a license to conduct such activities. Given the realities of doing business in our countries, distribution line data does not involve such nuances.

Choosing a form of ownership in a network
When starting a business, the question arises as to which form of business organization to choose. Individual entrepreneurs and LLCs are the most common types of ownership, which have quite a few differences between them.



An individual entrepreneur is an individual who registers as an entrepreneur. An individual entrepreneur does not have separate property, so in case of bankruptcy, he will sacrifice personal belongings.

An LLC is a separate legal entity with its own rights, obligations and property. In case of bankruptcy, the founders of the LLC risk their authorized capital (at least 10,000 rubles) and the payment of subsidiary liability (the owners of the organization will have to pay the debts). Personal property can be saved if there is evidence that they acted in the interests of the organization.