Working is part of the daily routine that most people have to do in order to have an income each month. Some have to work in companies. Others prefer to set up their own companies. Choosing between a corporation or a limited liability company is one of the choices to be made for this. This particular choice will influence the overall way the business operates. It is therefore very important to find out why you should choose to become an LLC.
A more advantageous legal framework
First of all, it is important to know that the LLC or Limited Liability Company is a legal framework that every company can choose from the moment it is set up or after a few years of operation. The first advantage of opting for a SARL is the way it operates, which is generally more controlled than a joint stock company, for example. Also, an LLC allows minority partners to benefit from more substantial advantages than other types of companies. In the same vein, the partner in question will not even need to have extensive knowledge of business law to be a partner in the company. What are the main features of a limited liability partnership? This is the question that this article will attempt to answer as clearly as possible.
Protection for the partners
The advantage of a limited liability company is that its partners are protected. Indeed, the responsibilities are limited, so if a problem arises, the greatest risk for them is to lose only the capital invested at the start. In the same vein, the partners of this type of company will not normally be sued by creditors for the assets they own. In the same context, it should be noted that a limited liability company may have only one partner to operate. The latter can then open up the company’s capital to other partners in order to make substantial improvements more easily and quickly.
With regard to taxes
Choosing a tax regime is very important for a person wishing to start a business. A company that chooses to become a limited liability company has the choice between Income Tax (IR) or also Corporation Tax (IS). This is possible even if the company consists of only one shareholder, as long as the company is not a legal person. If this is the case, the company must opt for corporation tax. If your limited liability company is a family business, you can also benefit from the tax advantages as a partnership with no time limit. In any case, it is essential to carry out a thorough study to find out which type of company is best for you.