The LLC has many advantages:

1. The partners will have the freedom to set in the statutes capital of

their society. It is stipulated that the law sets the minimum at € 1 

2. The partners of an LLC can be inserted in the statutes of a capital

variation clause. This clause will allow them to increase or decrease

the capital of the company without complicated formality.

3. A flexible organ function. The shareholders may decide to organize

their society based on the circumstances and the size of their

project. For example, an LLC can have several leaders, the spouse

can be a partner.

4. Except for certain exceptions, the financial liability is limited to their

contributions. 

5. The minority manager may have the employee cap.

6. The manager of an LLC can manage an unlimited number of SARL.- See more at: http://www.my-business-plan.fr/statut-sarl#Avantages et inconvenient

SARL: What isThis is the preferred company of French entrepreneurs: about 159,000 companies

created in 2012, 76% were SARL. This status has many advantages: no minimum

capital, model statutes, broadsides formalities and inexpensive, the ability to

associate and to raise funds from outside investors. In short, a natural choice,

almost any trace. But that status also requires to organize and define the roles of

each. Indeed, we must distinguish partners who provide the seed money (or)

manager (s) who runs (s), a partner that can also be manager. The cause: decision

making and sustainability of power. 

A reserved status SARLIt is suitable for almost everyone: from small neighborhood bakery to the internet

startup. It should nevertheless minimum two joined forces to create a limited liability

company and be certain of being able to find the time to organize general

meetings. It is during these sessions annually that are approved major decisions.  

This type of company is suitable for companies with good development potential and

growth. It is especially suitable for entrepreneurs who need to invest in inventory and

equipment, and are planning to hire.  

The advantages of the LLC1. A set freely releasable capital. 

The amount of the share capital is freely determined by the partners according to the

size of the business, and the company's capital requirements. 

Be careful not see too just because if the amount of capital is not consistent with the

economic requirements of the project, personal responsibility of the Manager and /

or the founding partners can be engaged. It is therefore illusory to create a limited

liability company with capital of 10 euros although in theory it is possible. Especially

when the contributions are made in cash (they may also be in kind), they can be

released at least one fifth of their value at the time of incorporation of the

company. The balance must always be freed within 5 years. 

The right solution? Create with eg 7.500 euros capital to have a minimum of

credibility, and pay only 1,500 euros in his pocket at the time of creation. The

remaining 6,000 euros will be made at any time within five years. This choice is

important because during the formation of the company, the amount of capital will be

public (visible or societe.com Infogreffe example). The greater the number, the more

it inspires confidence. 

2. Separation of assets.  

The responsibility of the LLC partners is limited to the amounts of their

contributions. Therefore no risk of having to repay the debts incurred by the

company on his personal property. However, they must for it to refrain from taking

part in the company's management, under penalty of being recognized because of

leaders. For the managers are themselves responsible for their mismanagement. In

case of default, they can be sentenced to personally bear the debts of fault

management is recognized. 

3. The ability to accommodate investors. 

LLCs may carry out capital increases by selling some of their shares to outside

investors. They can raise funds from business angels or investment funds, and thus

guarantee the financing of development. 

4. An option for the IR (income tax) 

The SARL is subject to corporation tax. However, LLCs under 5 years (employing

fewer than 50 employees and have an annual turnover or balance sheet total less

than EUR 10 million) may opt for a tax to IR. This option, which must be approved

by all partners, is valid for 5 years. 

The result of the business, gain or deficit, is then directly transferred to the income

statement. This device can be charged directly from a tax household income losses

generated during the first months and early years (which is common in the launch

phase), thus reducing its tax. This option is useful for companies to designers who

do not pay dividends and which benefit from other sources of income: wages of a

spouse or property income.  

The advantages of an LLC

 

    * The responsibility of shareholders remains proportionally reduced according to their

initial contributions.

    * A sale of free shares between partners, parents, children and spouses (unless a clause

of approval set out in the articles)

    * The minimum capital required is fairly limited

    * The choice of the name (name of company) is free. Note however that adding the words

"limited liability company" remains obligatory.

    * A single founder is enough to create the company.

    * Progressivity of the tax: the division of benefits (salary partner considered responsible

for SARL) could break the tip of escalation

    * The benefits that flow from the sale of shares are not taxable.

The SARL has long been the most used legal status to create a TPE - SME. In France,but for some years now, the limited liability company faces competition in the smallentrepreneur, and SAS. Indeed, these two legal forms are more flexible as for their creation and for their operation.

 

What can then be the benefits of limited liability  company? What might be the disadvantages? The DB provides an update for you on the pros and cons of SARL.

 

1. The benefits of the LLC

The LLC can protect their personal assets:

 

The  SARL  limits the liability of partners to the amount of contributions made. In principle, in case of difficulties of the company, staff or associates heritage is protected from creditor actions. This principle fall if heavy management errors were found, in which case their liability would again become "indefinite", that is to say that their personal assets would be seized to pay the debts of the LLC.

 

SARL makes it easy to associate, or not:

SARL requires at least two partners and may not exceed 100. The partners may be natural persons or legal   persons. Furthermore, no capital  minimum is required and may be comprised of contributions in cash, in kind or contributions in   industry. Finally, the LLC can be avariable capital   corporation, allowing to leave or enter the associated more easily.

 

If you do not want to associate with you, or if your project does not allow you, it would still be possible to the sole shareholder of your company, that is no longer an LLC but EURL.

 

The operation of the LLC is strictly regulated by law:

The Commercial Code governs much of the operation of a SARL, and it would be difficult to waive even by the articles of association, contrary to SAS for example. Thus, the transfer of shares is conditioned by the agreement of the majority shareholders, which helps secure the share capital of the company and the identity of the partners of the SARL.

 

Council DB: please read our comparison between the LLC and   SAS!

 

The LLC allows to organize freely stewardship:

The  SARL  can name the statutes or in an external act, one or more managers, who can not be, however, that natural persons. The manager can be associated or not, it can be minority or majority partner in the capital of the SARL . In addition, it is possible to combine a mandate as manager with a contract under certain conditions.

 

The spouse of the manager may participate in the operation of the LLC:

The spouse of the manager of the  limited liability company  may participate in the activity of the company, under the status of spouse collaborator.  No remuneration shall be paid to him, but he has a social protection (pension contributions, retirement and invalidity and complementary death), and can perform delegated all acts related to the operation of the SARL.

 

The LLC allows to choose their tax regime:

The  SARL  offers the possibility to opt for one of the two tax systems:

is the normal tax regime with social benefits to the IS, at 33, 33% either the regime of limited liability company

called   "family"   (SARL  created between members of the same family to the second degree or SARL under 5 years under cumulative conditions) with a

corporate income tax as a person company, c that is to say directly in the hands of the partner under the "salaries and wages" (IRPP).

 

The LLC allows the manager to benefit from the social security scheme for TNS:

When creating a SARL, the social system TNS  (provided that a majority managing partner in the share capital) is advantageous because less expensive than a salaried, especially at the beginning of activity thanks to payroll tax relief and the deferral of contributions.In addition, contributions TNS are weaker, and less cumbersome formalities (no statements to the URSSAF, the pension agency, no payslip ...).

The advantages of the LLCPosted April 4, 2011 - Posted in: SARL - EURL

SARL is the form of commercial company that is most used in the small businesses that

do not require significant capital contribution, this type of project that most often the object

of a constitution of limited company. SARL therefore offers significant

advantages, which, however, depend on the characteristics of each project.

Indeed, the operation of the LLC is much more flexible than that of public limited

companies and so much more suitable for smaller projects. Moreover, no minimum capital is

provided, liability is limited to the amount contributed and provisions serve to avoid the

need for a statutory contributions in case of contribution in kind.

For more information:  "create an LLC"

Since the Law on modernizing the economy of 4 August 2008, the simplified joint stock

company (SAS) is the form of society that most SARL competition, as there are many

similarities.

SARL still keep three major advantages compared to corporations:

Its operation is strictly regulated by law and many of these provisions can not

be ruled by the statutes, thereby bringing greater security to the partners;

When the manager holds more than half the shares of SARL, or when there is a board

of managers who together hold more than half of the shares of the company, they

can benefit from the self-employed regime.

In the SARL, the spouse of the manager may assert collaborating spouse

status.

These three major advantages of the LLC are nevertheless depending on the project,

and may in some cases prove to be disadvantages.

SARL, reassuring company for associates

The of the LLC operating rules are strictly regulated by law and the statutes will not

be able derogate from them in most cases, contrary to the rules applicable for SAS, for

example, the operation is very flexible (so organized largely in the statutes).

Associate in an LLC will enable the partner to benefit and some security, since the

law supervise the operation and it will not be waived. This framework will be a major asset,

especially for majority shareholders.

SARL: Interest of non-employees regime

Non-Salaried Plan have advantages over that of the general scheme provided for

employees.

First, for the first two years of operation, the LLC offers a relief from social security

contributions, the latter being calculated on a flat rate rather weak first and second year.

Moreover, it is clear that the relationship between payroll and compensation paid is much

less important than that of a salaried officer assimilated.

So it is only from the third year of activity that payroll taxes of provisional self-

employed will be calculated on the income actually taken, albeit with a lag of two years (the

calculation base consisting of income social manager received two years

earlier). Regularization takes place at year end.

One can thus consider that the scheme for self-employed persons to the LLC offers

both financial benefits:

the first with the time shift at the TNS contributions, while a leader likened employee

must pay his payroll immediately

and the second with the TNS social cost that is lower than that of the leaders

assimilated employees for the same salary level.

For more information, see our article on the choice of TNS or employee.

The collaborating spouse status SARL

The possibility for a spouse to be able to benefit from collaborating spouse status is

another advantage of LLCs.

The collaborating spouse status will allow the latter to be fully involved in the

management of the company.

In addition, the LLC does bear a very low cost to the employee spouse when he will receive

full social protection, only contributions to the basic pension, supplementary pension and

disability-death will be requested of it .

Different methods are provided for the calculation of these contributions:

A flat rate equal to one third of the social security ceiling;

A flat rate equal to one third of the entrepreneur's income;

A flat rate equal to half of the entrepreneur's income;

Or, if agreed the entrepreneur, on a third or half of his professional income.

Creating an LLC: the benefits of status    

Advantages and key features of the status of the LLC: what to know before youcreate an LLC.

The SARL is composed of associates

The LLC consists of a minimum of two members and a maximum of one hundred partners. The partners may be natural persons or legal entities. See the file "Becoming partner LLC"

Note: When SARL is composed of a single partner, it is then called Sole Company limited liability (EURL), SARL single partner or sole proprietorship.

The share capital is established by partners

The amount of the share capital of a GmbH is freely determined by the partners in the articles.  It is composed :

of contributions in cash (money) and / or contributions in kind (property other than money) made by the partners.

One advantage of SARL respect to a liability of members of the LLC, which is limited to their capital contributions. See sheet liability SARL partners.

Note: It is also possible to make contributions in industry. While these give right to the allocation of shares, they do not contribute to the formation of social capital, that is to say, their value is not taken into account for calculating the amount of capital social.

For example, if the partner brings A € 1,000 in cash and the associated B industry makes a contribution valued at € 500, the amount of share capital of the company will amount to € 1,000.

Find a model in the model statutes SARL creation guide. The INFOREG lawyers provide a commented reading of the statutes of your LLC and validate the tax and social optimization of your company: you make an appointment as part of a personalized legal   service.

The cash contributions to the share capital of the LLC

Whatever the nature of the SARL, fixed capital or variable capital, shares representing contributions in cash must be paid at least one fifth (1/5) of the amount at the date of incorporation of the company, subject to pay the remainder within five years of registration of the LLC (payment of surplus is made in one or more times to call the manager).

Warning: if society comes to file for bankruptcy before the expiry of five years, the partners may be forced to release their surplus supply immediately.

Note: variable capital SARL is a company whose share capital is subject to a change upward or downward, under a provision of the Articles, without a need for amendments to the statutes (detail SARL variable capital).

Contributions in kind in the share capital of the LLC

The shares representing contributions in kind must be fully paid at the date of incorporation of the company. Thus, unlike the consideration in cash, it is not possible to take several years releasing a contribution in kind.

It is necessary to make an assessment of each of the contributions in kind. In principle, it is made on the basis of a report by an auditor shall unanimously nominated partners or, failing that, by the President of the Commercial Court. However, shareholders may resolve (still unanimté) not to use such an expert if no contribution in kind does not exceed the sum of 30,000 euros, and if all the contributions in kind not subject to évalaution n does not exceed more than half the share capital.

The head office of the LLC

In principle, the headquarters of an LLC is established in a commercial (commercial lease, short term lease or temporary occupancy agreement). However, it is possible to domicile the Company:

is the home of the manager. The domicilation can be done indefinitely, since no legislative or contractual objects. Otherwise, the length of the direct debit will be limited to five years from the registration of the company in the commercial register, but not exceeding the legal term, contractual or judicial occupation of the premises;

either in a domiciliary company; either in the premises occupied by another company.

To learn more about these possibilities, detail What domiciliation for a commercial company?

Activities carried

The LLC is a trading company in form requiring registration in the trade and companies, and regardless of its purpose (civil, commercial or liberal).

Some activities can not be carried as SARL:

insurance companies, with the exception of general agents and insurance brokers; capitalization companies; savings companies; Deferred credit business; Investment Companies; medical biology laboratories; tobacconists.

However, real estate management companies are required to be exercised as LLCs.