What exactly is a Limited Liability Company (LLC)?
It is a structure of members (unlike partners or shareholders). These members (which can be endless) can comprise other businesses or individuals. A Limited Liability Company also merges several features you will find in a company or business.
The major benefit of a Limited Liability Company is protection.
Using a Limited Company the members will not be legally responsible for any amount outstanding the company might acquire unless an individual own guarantee has been marked.
Starting an Llc Company Formation will be quite easy and hassle-free than for a corporation.
As like Corporations or Limited Companies, there is no necessity to keep company record, note declarations or hold meetings; this in itself can diminish the workload on the business.
You have greater flexibility to opt for how returns are shared, unlike a conventional enterprise or company where revenues are provided similarly or in proportion to the number of shares held.
There is a tax benefit if situations enable where you won’t have to pay both individual and corporation tax.
Disadvantages of a Limited Liability Company
If a member becomes insolvent or passes away the company is dissolved.
Establishing will be more complicated than for an individual-trader or company.
Even though official procedure and general running are not as multifaceted as for a business, never the less there is more work involved than running as a sole-trader or corporation.Company Registration In Dubai
Setting up a Limited Liability Company
It is highly recommended to get the Trade License Dubai and take help of a lawyer as you will be necessary to file an Article of Organization to the Secretary of State. There will also be a charge for performing this. It is also recommended to complete a running contract to explain possession, revenue sharing and household tasks of the members.