Advantages And Disadvantages Of The LLC

The GmbH is under the sole proprietorship, the most popular legal form in German companies. This popularity is not surprising, because when you founded his company as a limited liability, the liability is limited to the amount of their shares. This has the advantage of allowing creditors in times of crisis generally do not access to private property. It must, also note the following: If one takes a loan for his GmbH, it is possible that the bank requires special safeguards, such as a personal guarantee. And then you should also know that the liability of the LLC in the bankruptcy case usually does not protect against the access of the banks. This only protects against access by potential business partners, where one is self-inflicted. Even as individuals we can establish a limited liability company, a so-called one-man GmbH. To establish as a legal form to a limited liability company, please create a social contract. Thereafter, the managing director is appointed. As a paid up capital and paid, with onemust note that at least part of the share capital of 25,000 must be paid. If it is less than 12,500 in cash must be paid. If the capital contribution made, you have to register a private limited company in the Commercial Register. The advantage of an LLC is) the limited liability and full control (with a one-man GmbH. Disadvantages of an LLC are the complex formation, the minimum capital (25,000 ), the business tax obligations and complex accounting duties.

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