Every entrepreneur must understand what an LLC is. A limited liability company means an organization whose authorized capital includes shares distributed between the founders. She has the following characteristic features:
- The authorized capital is organized by the equity participation of the founders;
- members of the company are liable only in an amount not exceeding the size of the contribution;
- create such an organization can both a legal entity and an individual ;
- one person or a group of persons may act as founders.
When analyzing what an LLC is, it is worthwhile to understand: one person can act as the owner and founder, but a sole presence in the company is not allowed. The number of employees can reach 50 people and no more. When organizing a legal entity constituent documents are prepared . In a limited liability company, a charter is formed. Each founder has the right of free exit with the return of the invested amount in full. If the deposit was made with securities or property, the rest of the participants are required to return an equivalent amount within a specified period (no more than three months).
When answering the question of what an LLC is, one should not forget that it is primarily a legal entity, which means that a legal address is required. According to the current legislation, it is not allowed to distinguish the actual address from that indicated during registration with the tax service. The location of the company affects the efficiency of its activities, therefore, it is necessary to select a future office or building for the enterprise, taking into account the specifics of production or the functioning industry. In addition, you need to consider how company staff will get to work. Large companies provide a vehicle, thus showing care for each employee.
For the development of the enterprise, start-up capital is formed for the first time, it is also called charter capital. Then this amount serves as a reserve that can save the company in the event of adverse circumstances. In our country, an amount of 10 thousand rubles is established, in the presence of which registration of a limited liability company is allowed.
LLC structure includes two governing bodies:
- The main one - it is a meeting of founders, which is organized without fail and is intended to solve the most important strategic tasks.
- Board of Directors - it is formed at the discretion of the head. This body refers to optional elements in the structure of society.
At the meeting of founders, an executive body is elected, which solves current problems that regularly arise in the process of activity. As a rule, the executive function is performed by the sole management body headed by the general director or president of the company. Internal audit is carried out by a special audit commission organized specifically for this.
It should be clarified that the form of ownership of the LLC allows for amendments to the constituent documents. In this case, significant changes should be reflected in the charter and registered by the state body. This is especially true of changes in the number of participants in a company. So, if their number exceeds the mark of 50 people, the law will have to re-register the company as a joint-stock company or create a production cooperative.
Some business entities that have temporarily free cash and wish to invest them with profit, think about what an LLC is and whether a legal entity can enter into it. In practice, such relations are often concluded, and there are no obstacles to such agreements in the legislation. There is only one condition: there should be more than one person in a given economic entity.