Asiabizservices Advises When To Form a Limited Liability Company
A company that helps foreign individual, entrepreneur or a business professional who wants to setup a Singapore company as an individual.
by Gerbert Keenan Monday, December 27, 2010
For entrepreneurs seeking for a business opportunity, they may do well to ask themselves if indeed, it is a right choice of business or if it can be formed any time at will. To answer, it is wise to understand what a private limited company offers and whether it can be dissolved.
“At best, the liability protection clause similar to a corporation characterizes a private limited company,” commences AsiabizServices.
The company adds that the law see a limited liability company to be a legal entity distinct from its members. Thus, during unfortunate occurrences, members are not personally held liable for debts the LLC incurred unless they have previously signed a personal guarantee.
“Members can be versatile in selecting the mode of distribution of revenues which may not be a 50-50 split as what commonly features in a typical partnership.”
Moreover, it follows a specific flow direction for its business losses, expenses, and revenues—from the company to the individual members without taxing on a corporate level. Thus, members avoid double taxation, making LLC tax-efficient.
The ease of running an LLC is also expressed during meetings when minutes are not required to keep and resolutions are not a necessity. Meetings may not even be a compulsory. Nor should members formulate by-laws, unless otherwise, stipulated in some jurisdictions.
Nonetheless, it has a dose of its own complexities. Asiabizservices recommences her highlights.
“LLC is not cloaked with perpetuity as its existence can halt by a death of a member or when it undergoes bankruptcy.”
Its management structure may be unfamiliar to many as it requires no board of directors or officers. Principal members may use different titles such as managing member, managing director, chief executive officer, and president.
LLC investors who seek to avail business loans may be asked to guarantee the said loan personally. Such is especially true among newly formed LLCs, thereby, making members liable for the company’s debts.
LLCs may be ideal to some. Compared to a corporation, its accounting and paperwork is easy to handle and its taxation is efficient as the losses are deducted from profits before subjecting for taxation. But in structure, LLC is more complex than does a partnership or sole proprietorship for that matter.
The burden of deciding whether LLC is a suitable structure or now is the right time to form it is perched on an investor’s understanding and knack of a business. Surely, Singapore offers equally attractive business landscape to foreign and locals. Its business initiatives benefit even a simple structure like a sole proprietorship or a complex organization such as a limited liability company.
About the Publisher:
Asiabizservices offers one-stop business solutions to companies, particularly, those that are managed and owned by foreign investors. Since its inception, Asiabizservices has successfully helped foreign entrepreneurs form a Singapore company. Among its specializations are Singapore company setup, corporate services, accounting services, nominee services, company registration, whether as a sole proprietorship, private limited, limited liability partnership; offshore company formation, incorporation of foreign companies either as a branch or subsidiary office, accounting services including payroll preparation and more.
Asiabizservices is the leading provider of Singapore Company Incorporation services and has successfully helped thousands of both local and foreign entrepreneurs Incorporate a Singapore Company. It also provides chartered secretarial services.
For more information visit:
AsiaBizServices PTE LTD
address: 120 Telok Ayer Street Singapore 068589
Singapore Company Formation Service, We provide company registration,incorporation, immigration, accounting and taxation services to entrepreneurs and businesses worldwide.
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