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Forming a Limited Liability Company (llc)

Author: Rudradatta Rath



A limited liability company (LLC) is a legal business structure that separates as well as protects a business and its personal assets from those of the owners of the company. Forming a limited liability company is easy compared to other legal entities for business because of minimum paper work.




In case of limited liability companies share holders are not responsible for company debts. During the requisite time the directors may guarantee loans or credit settled to the company.




Paper process for limited liability company formation (LLC):




Before forming or set up a limited company it is essential to be registered with companies house. Find few of the requirements for limited liability companies:




1) Memorandum of association: the Memorandum of association includes company name Colts Quincy Wilson Jersey , location of registered office, and objective of the company or business, Types of business.




2) Article of associations: The article of association deals with meeting procedure, rights of share holders Colts Malik Hooker Jersey , power of directors, dividend payment procedures etc




3) Form 10: This document is required during the time of company incorporation in the UK, issued free by the companies house. This form occupies the complete details of the registered office as well as the absolute information of the directors and secretary.




4) Form 12: The Form 12 is a declaration that the company has been abided by all the legal requirements for the incorporation of the company.




Advantages of Limited Liability Company:




1) LLC is not affected by the death and bankruptcy of members




2) It allows you to conduct business in the UK




3) It is formed by members not by share holders




4) Members can draw up their own contract




5) Flexible profit distribution among the members




6) It protect owners from personally liable for acts and debts of the LLC




7) There is no need to have an annual general meeting for share holders




8) Very less administrative paper process and record keeping




9) Profits taxed at the member level not at the LLC level




10) No Limited Liability Company member has personal liability





Article Source: Link



About the Author:



Rudradatta rath is an online marketing leader in Orisysinfotech.co, writing articles for Lincroft.co which is a leading online company formation and registration agent based in UK provides company formation Colts Tyquan Lewis Jersey , company registration and accounting services to both UK and international clients. For more information on how to form a limited liability company please visit www.lincroft.co.


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