• What is an LLC?

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    What is an LLC?

    In modern economic conditions there may be various forms of ownership. One of the most common of these is LLC. This form of ownership is preferred by the majority of domestic businessmen.

    What is LLC: characteristics

    The abbreviation LLC stands for: limited liability company. It can be represented by a firm, enterprise or organization. Such an economic company can be created by one or several natural or legal persons.

    The main characteristic of an LLC is the division into parts of the authorized capital of a company, therefore all its members are simultaneously considered its founders. According to the current legislation, they are responsible for the activities of the LLC and the risks of financial losses that may arise during the financial and economic activities of the organization, but only within their shares in the authorized capital. At the same time, the founders are not personally liable for the obligations that arose from the LLC.

    Another feature of such an economic company is minimal restrictions on the size of the authorized capital. Its value should be at least 10 000 rubles. In this case, the founders for its formation can use cash and non-cash funds, securities, as well as movable and immovable property.

    The next characteristic of LLC is the limit on the number of founders. Their number should not exceed 50 people. If in the course of business activities it is necessary for some reason to introduce several more founders, then, according to the current legislation, it will be necessary to reorganize the LLC into a public limited company (OAO) within a year.

    Types of activity Ltd.

    A limited liability company may engage in any activities other than those that are prohibited by law and for which no licenses are required. Selected activities are required to be written in the statutory documents of the LLC, only after that they are subject to registration with the state authorities on the basis of an application written in the prescribed manner.

    Management and control Ltd.

    The structure of a limited liability company should be as follows:

    • The supreme governing body is the general meeting of the participants (it resolves the most important issues within its competence);
    • The executive management body is the general director or president (a manager who solves current issues and acts as the lead person in the organization).

    These bodies are basic and obligatory, however, an additional audit committee can be organized by the founders. She has the following duties and rights:

    • conduct regular audits of the financial and economic activities of the organization;
    • have access to the LLC documentation;
    • to verify balance sheets and annual reports.

    Features Ltd.

    Limited liability company has a number of features, among which are the following:

    • The founders can leave LLC at any time, for this they do not need the consent of the other participants. However, they must pay him the value of his share within 6 months. This means that every founder of LLC has a real opportunity to return the invested funds when creating an organization, if its financial activity is successful.
    • In a limited liability company, it is possible to accept new members with the mandatory contribution of a share in the authorized capital. After that, they are registered in the constituent documents.
    • The founders of LLC are entitled to make changes to the charter of the organization. They can also increase the amount of initial capital to the required size at their discretion.

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