Limited-liability-company

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Limited liability company

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Description : A limited liability company (hereinafter referred to as LLC) is a commercial company with legal personality status. Typically, an LLC's equity consists of the total face value of its shares. One of the key features and benefits of an LLC is the fact that shareholders cannot be held personally responsible for the company's debts or liabilities - only the company's assets themselves are at risk. However, the issue of limited liability also depends on the national legislation of each jurisdiction. In general, an LLC is a corporate structure that combines the simplified taxation of a partnership with the principle of limited liability of a corporation. It can be the perfect solution for an international trading company, provided the jurisdiction is well chosen.

Functions of a limited liability company There are no special circumstances in which you would be required to incorporate a limited liability company. An LLC is a type of legal entity that successfully blends the majority of the most desirable characteristics of other business types, which explains why most entrepreneurs choose an LLC when starting a business. Additionally, many offshore jurisdictions have simplified accounting and record-keeping requirements for LLCs.

Normally we would advise our clients to consider an LLC as a viable option if they wish to incorporate a trading company or small business within certain limits. LLCs are perfect for those looking for a way to run a business (locally or internationally) and distribute profits at minimal cost. However, you should always keep in mind that an LLC does not typically provide an effective mechanism to introduce a partner with limited voting power or numerous investors to your company. In these cases, we recommend that you consider a limited partnership or a public company, as they may offer more effective ways to achieve your goals. Forming an offshore company in a tax haven can be a great way to reduce maintenance costs.

Pros and cons of a limited liability company As with any other legal entity, the LLC has its own advantages and disadvantages. Depending on the circumstances and your chosen jurisdiction, there may be other specifics besides those listed below. For this reason, we recommend that you consult our lawyers before starting the incorporation process.

The main advantages of an LLC are: Limited liability of partners to creditors Lower minimum capital than for a public company Flexible structure: It can be operated with one or more shareholders minimum board and director requirements; no supervisory authority Flexibility in taxation Relatively quick and easy onboarding process Easy accounting and paperwork Usually one person can be shareholder, director and employee (if required) The main disadvantages are:

https://www.confiduss.com/en/services/incorporation/structure/limited-liability-company/

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Tags : Limited liability company, LLC, business

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