Company statutes are often quite obscure to understand. What is a LLC? We explain everything about the limited liability company (SARL), a trading company status that has its peculiarities. The point in our article.
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- What is a LLC?
- How to create a LLC
- The main characteristics of a LLC
- Understanding LLC: namely
- The social object of the LLC
- The social capital of the LLC
- Functioning and management of the LLC
- Management and manager of LLC
- Advantages and disadvantages of the LLC Advantages of LLC
- The disadvantages of LLC
Plan de l'article
What is a LLC?
LLC is a limited liability company in France. This is also the simplest status to be adopted by any company. LLC is a commercial company that implies the limited financial liability of the partners of the company. This financial liability is limited directly depending on the contributions of the partners.
When one embarks on the creation of an LLC, it is essential to have one or more associates. It is also necessary to have capital , which is freely fixed by the partners together.
How to create a LLC
Creating a LLC is not complicated or complex in itself. By creating an LLC, the partners are obliged to respect a process, procedures. In short, the manager and his partner (or associates) have rights and duties to engage. The conditions for creating a LLC:
- Have one or more partners
- Have a capital, fixed by the partners;
- Drafting together the statutes of the society;
- Have a valid registered office;
The great characteristics of a LLC
It should be noted that a LLC does not have a model model. Some features are immutable and fall under French law:
- Any LLC must consist of a minimum of 2 associates and a maximum of 100 associates;
- The liability of each partner is called “limited” because it finds its limits in the contribution of each partner. In the event of financial concern and debt of the company, a partner can only be liable in the amount of his contribution to the capital of the LLC;
- An annual General Meeting (GA) must be held;
- Any manager of SARL is responsible for management, both criminal and civil;
- Assignment of LLC: this is done by shares and not otherwise.
Understanding LLC: to
know Some points are inseparable from the LLC. Here’s what you need to know about LLC.
Any LLC has a social object. This corresponds to the activity that the LLC has planned to carry on. It should be noted that the social object of an LLC is modifiable in part or in total during the life of society. Specific formalities are to be followed in the event of a wish to modify the corporate purpose of the LLC.
Any LLC must have a defined social capital. This share capital has no minimum in itself. It is even possible to make contributions of a cash type or in kind.
All social capital of SARL is divided into shares . These shares are transferable, but only under conditions strictly regulated by law. A associate has a number of votes equal to the number of shares he has in the LLC.
Good to know : LLC is a trading company, but its partners are not required to be traders.
Operation and management of the LLC
Every partner within a LLC has a right to information on the way the company operates. Each partner can thus vote on strong collective decisions by actively participating in general meetings.
Management and manager of SARL
An LLC must be managed by a minimum manager (natural person, associate or not) and by annual AG bringing together all the partners of the LLC. In AG, the accounts are validated, the distribution of profits is decided…
The manager of the LLC is the legal representative of the SARL. He is appointed by statutes or during an AG of associates. A manager of SARL may be dismissed at any time by joint decision of the shareholders (shares to be respected) if the need arises.
By taking over the day-to-day management of an LLC, a manager undertakes to be able to make any commercial, managerial and financial decisions necessary for the proper conduct of the operations of the SARL.
Namely : the remuneration of the manager of the LLC is freely fixed by the partners.
Advantages and disadvantages of LLC
There are advantages and disadvantages to the status of LLC.
Advantages of LLC
- Possibility of capital variability clause in the articles of association;
- Capital of LLC fixed freely;
- An LLC may have several executives, for example, with an associate spouse;
- If there is a minority manager, the latter may be employed
- ; All assets (associates and manager) are protected by the statute;
- The status of LLC is serious and reassures investors.
The disadvantages of LLC
- Impossibility of issuing marketable securities;
- The majority partner cannot, of course, be a manager and an employee at the same time;
- The formalism of the LLC is more restrictive and expensive than that of an IC (sole proprietorship);
You know everything about LLC! Good creation of society.