Which group of individual entrepreneurs should you choose?

Choosing the right group for an individual entrepreneur is one of the most important decisions for any entrepreneur. It directly affects the scope of reporting and the tax burden for the business. Each group of individual entrepreneurs has its own tax rates, income limits and reporting rules. All this will influence the decision to choose the most profitable tax group specifically for your type of activity. In the article, we will examine this issue in detail, considering examples of choosing the most profitable group for several popular businesses in Ukraine.

Groups of individual entrepreneurs in 2025: taxes and requirements for entrepreneurs

Accountant “Prikhodko & Partners” offers you a summary table for individual entrepreneurs on a simplified taxation system, which takes into account the main features of each group:

Which group of individual entrepreneurs to choose for your business: recommendations of an accountan

Online store

If you plan to engage in online trading, you should consider the second or third group. The first one is not suitable, since it is intended only for retail trade in markets. The second group can be profitable if you do not plan to hire more than 10 employees for your online store and the goods are sold mainly in the form of retail sales to end consumers. In case you plan to expand and add wholesale, it is better to switch to the third group.

Beauty salon and cosmetology services

Salons with manicure/pedicure, hairdressing and cosmetology services are better off choosing either the first (if the person plans to provide the relevant services independently) or the second group. In addition, an individual entrepreneur of group 2 will allow you to effectively cooperate with other entrepreneurs to share the premises.

IT specialists

For these individuals, the optimal choice would be the second or third group. It is worth understanding that in the second group, an individual entrepreneur can provide services only to the population. The third group is the most popular among IT specialists, since it is possible to provide services to foreign businesses, and there are no restrictions on the number of employees, which allows you to scale the team to the desired size.

Taxi driver services

For a taxi driver, the first or second group would be the right choice. If you have a plan to hire other employees to provide transport services and provide your services to other business entities, then the best option would be to register a group 2 individual entrepreneur. In addition, for most taxi drivers who work through online platforms (Uklon, Bolt, Uber, etc.) and provide services to the population, choosing the specified taxation group is a common occurrence.

Freelancer

Finally, if you work independently using online platforms, and your target client is a citizen of Ukraine, then you can choose the second group without hesitation. The situation becomes more complicated when your official clients are foreigners. In this case, you can also consider the option of switching to the third group of FOP.

Accounting services for individual entrepreneurs from the law firm “Prikhodko and Partners”: main characteristics

The law firm “Prikhodko and Partners” offers accounting outsourcing services for individual entrepreneurs. Our specialists provide professional consultations, help determine the taxation system specifically for your business, and choose a KVED. Accounting services for individual entrepreneurs will also include:

• keeping records (from primary documents to the formation of accounting reports);
• calculating and paying taxes (correct calculation depending on the specifics of reporting);
• compiling and submitting reports to the State Tax Service (through the Electronic Taxpayer's Account using a valid KEP) and other services.

Our law firm offers to develop an individual accounting service scheme specifically for you, which takes into account the specifics of your business. Accounting outsourcing will allow you to optimize your activities, avoid the costs of maintaining a full-time accountant, as well as fines from the tax service for untimely submission of the necessary reports.

Comprehensive accounting outsourcing will allow you, by choosing the right group of individual entrepreneurs, to effectively run your business and not worry about the tax burden. To find out the cost of our accountant's services - fill out the form below.