What is a limited liability company?

<>

Also known as «SRL» and popularly known as «SL» or Limited Company. It is one of the types of companies within the commercial field, it is widely used in Spain by self-employed and self-proclaimed “entrepreneurs”.

This, in turn, enables members of this type of company, limit your liability to the capital contributed to the company. Therefore, it is an effective way to protect your personal assets, as part of the feasible risk of indebtedness on the part of the company and the society in question.

What is a sole proprietorship corporation?

When it comes to companion options, it's the sole proprietorship limited liability company. One of the most selected by entrepreneurs that in their first steps in the market prefer to register as self-employed and thus be able to work on their own.

East type of business company It is chosen by those entrepreneurs who aspire to be an individual entrepreneur and likewise enter commerce and industry with a limited liability with which they pledge their assets.

You can give two different cases of sole proprietorship limited liability companies

• One of them is made up of a unique partner, I already know that this sole partner is a natural or legal person.
• The second distinctive case of the sole proprietorship limited liability company is a society constituted by two or more partners. This as long as all the units have been transferred and become the property of a single partner.

Characteristics of a sole proprietorship limited liability company

Even when they exist various types of trading companies through which an individual can start to build their business.

It is the sole proprietorship limited liability company, which offers special benefits and advantages for the self-employed and the single entrepreneur type.

This trading company is mainly characterized by having a single partnerSiendo ese socio que tiene el poder ejecutivo dentro de la compañía para gestionar o delegar la gestión ya be en un grupo de persons o en otra persona.

Another important feature of this type of society of sole proprietorship limited liability, is that in the same way as the other societies. The the capital contributed is limited in the same way as its liabilities with the debts of the society, but in the society of rlimited exclusive responsibility the share capital is divided into equal and indivisible parts.

Some of the more specific characteristics of a sole proprietorship limited liability company

• The constitution and deed of the company must specifically establish the organization of management. Being only changed if the statutes provide for such changes.
• To create a sole proprietorship limited liability company, you require a minimum of 1 natural person. As more people are included, the company will be solely a limited liability company or LLC.
• Must be register and register in writing in the Mercantile Registry, any change of sole partner, as well as the change of sole owner of the limited liability company.
• Should be registered in the Mercantile Registry, that sole proprietorship limited liability company that is also constituted through public deed and that will contain the bylaws of the company.
• Shall Submit the deed of incorporation of the mercantile company to the Mercantile Registry within a period of two months., the same period that begins to count from the date on which the deed of incorporation of the company was granted. Being the founders and administrators who will be jointly liable for the fault, damages and losses caused by the breach of the obligation of registration in the Mercantile Registry.

Some features added to the SL

• In case of need to register as a sole proprietorship within the 6 months prior to the Commercial Registry, the partner will respond in an unlimited and joint manner to the social debts that you have hired, during this period that the company passed without being registered in the Mercantile Registry.
• The the company can start commercial activities on the date of granting of the articles of incorporation, not before.
• Unless otherwise provided in the Statutes, the sole proprietorship limited liability company will have an indefinite duration.
• To be 3,000 Euros the minimum initial capital constitute a one-person limited liability company. The capital will be divided into equal and indivisible parts, which may not be taken as shares or any negotiable title. The social capital contributed must be fully paid up to prove participation in the company.
• Within the contribution of social capital, it is possible to provide valuable rights or assets and these will be taken as the proportional economic part.
• In no case and in no case may they be counted as contributions to share capital, those jobs or services.
• Unless otherwise stated or stipulated, all The contribution to the capital stock will be considered made by property title.

These characteristics clarify the option of an entrepreneur who wants to run his own business, being a business figure. Employing a certain amount of human factor and whose needs are not satisfied when it is established as a limited liability company.

What is a sole proprietorship limited liability company?

As to constitution of a sole proprietorship, the advantages, perhaps elementary, must be considered, such as how simple it can be register in the Mercantile Registry, as a self-employed entrepreneur rather than wanting to determine a limited liability company.

Another part of the vAdvantages of forming a single owner limited liability company, is the ease with which financial organizations can offer us financing for the start of operations of this company.

In order to determine a sole proprietorship limited liability company a certificate of "Social denomination" it is issued by the Central Mercantile Registry.

Saying the certificate is valid or has a shelf life of 3 months, Being the term in which this is valid and it being understood that after these same 3 months the certificate can be renewed so that it is valid for another three months, despite everything, it is not recommended to let the certification expire or expire.

From this certificate issued by the Central Mercantile Registry, A copy must be attached when completing the DUE.

Later, the contribution of social capital must be made, either monetary or non-monetary contributions.

The monetary contributions are those whose amount is only monetary and is the monetary contribution of each partner, in the case of being a non-monetary contribution, this can be that of an asset with a defined and specific value.

In the case of one sole proprietorship limited liability company, You must pay the Tax on Patrimonial Transitions in the Treasury and also request the CIF, at the same time for other certificates.

Differences between a one-person limited liability company «SRLU» and a limited liability company «SRL»

Let's start with the differences that exist between the society of sole proprietorship limited liability company «SLU» and a self-employed employee.

Both are constituted differently and pay taxes differently. Meanwhile he The self-employed worker is taxed through the personal income tax or "personal income tax", which incidentally has a nominal rate of 19.5% - 47%.

The Sole Shareholder Limited Liability Company «SLU», taxed with corporation taxSince these taxes are already lower for micro-companies that pay less than 15% or at most for companies with 25%, this only in 2016.

Within the accounting differences, the same beneficial difference for the company is not palpable, with the registered self-employed being the one who achieves fewer obligations than a company, this for obvious reasons.

Meanwhile he The self-employed worker must present an account book that represents and reflects the inflows and outflows of money., which could be classified as an easy task being carried out by a single person, on the other hand, the one-person limited liability company must carry the accounting aspects like all types of commercial companies, having to present account balance that adheres to the general chart of accounts.

More advice on SL or freelancers

The disadvantage here for the self-employed is how capable he is of carrying out this control of time and knowledge to carry out his accounting aspects.

Some responsibilities of autonomous and commercial companies Well differentiated and that represent of great interest when establishing a company, are the responsibilities for non-payment or non-payment on the part of the company.

Be self-employed, the debts fall on the direct patrimonial assets of the person in question for non-payment, while, a limited liability company, is that in the event of non-compliance with payments, only the assets with which the mercantile company was constituted, those assets or contributions that are delivered at the time of being constituted as a mercantile society before the Central Mercantile Regime, would be in danger.

Finally, the the self-employed person is at greater risk of losing their assets and everything that a commercial company owns that runs the risk of losing an investment given to capital stock.

Inside the vadvantages and disadvantages that may exist between being self-employed or being a limited liability company, with the benefits of being an SME.

It is recommended to start as a self-employed worker, in order to achieve stabilization in the market and pass or aspire to be an incorporated commercial company.