INTORDUCTION TO

ENTERPENURSHIP
LIMITED LIABILTY
COMPNAY
GROUP WORK BY :
M O H A M E D , R A D WA N
LISA LOUKAKU
DAOUD MRIZAG
MAHER AL-SULAIMANI
SAMUEL STIPIKALA
 OUR ROLES
Team members ROLE RESPONSIBILITIES

LISA LOUKAKOU Researcher Provide an overview of LLC stucutre a nd Pros & cons associated with it

MAHER AL-SULAIMANI Researcher Discuss the implications of forming a LLC

MRIZAG DAOUD Researcher Discuss strategic advantages and disadvantages of forming an LLC

RADWAN MOHAMED Researcher Financial benifits and risks of forming an LLC

Research on LLC structure and examples of companies. Structuring the

SAMUEL STIPKALA Researcher
presentation.
Definition of
Limited Liability Company (LLC)

"A limited liability company (SARL) (Art. 772–827 CO) is a combination of a

public limited company and a partnership. It is one of the most common legal forms
in Switzerland."
(Portal, 2023)
 Define
LLC
It is mostly suitable to small and middle size company and owned
firms .

Profit oriented firm with a high capital requirement

A SARL is established at the time of its entry in the Commercial

Register and must be notarized.

Each shareholder holds at least one share in the share capital

A minimum share capital of CHF 20,000 must be contributed in

the form of either cash contributions or contributions in kind.

(Portal, 2023)
Start Cost and Taxation
LLC

• Startup costs for a SARL are lower than for a PLC but more than for a partnership.

• The creation of a SARL needs a minimum equity contribution of CHF 20,000.

• Additional expenses for consultancy fees for startup methods range from CHF 600 to CHF 2000.

• Notarial costs for memoranda of association range from CHF 700 to CHF 2000.

• Fees for Commercial Register registration are CHF 600 (if the share capital is less than CHF 200,000).

• If the share capital is more than CHF 1,000,000, a stamp duty fee of 1% is charged.

Memoranda association = a legal document used by private companies to define its relationship with shareholders

Stamp duty = Stamp duties are calculated per transaction value and deducted by bank.

(Portal, 2023)
 Duty to keep records & auditing agency
LLC
Limited Liability Company should follow bookkeeping accounting procedure according to Art. 957 & seq . OR

SARLs that surpass two of the following limitations in two consecutive fiscal years face an ordinary audit (Art. 727 CO) :

Total balance sheet: CHF 20 million

CHF 40 million in revenue

250 people are employed.

Others are subject to a limited audit. They may be excluded from the latter if they employ less than 10 individuals on an annual basis.

(Portal, 2023)
Advantages of
LLC
Tax Felxible One to unlimited number of members

Flexibility of being taxed as a Sole

Proprietorship , Partnership , S Felxible and Expandable ownership
corpotatipn or C corporation

Profits shares are not taxable

Liabilty Protection
Relatively low starting capital
There is no personal liability for
Compared to Limited Company (SA) CHF
debts
100'000

(Portal, 2023) (Grasshopper, 2019)

Disadvantages of
LLC

High mangement fees Double Profit Taxation

(GrassHopper, 2019)
Requires more protocols , Auditing agencies Taxes are Taken form SARL's
shareholder meetings , tax forms, Yield, captial and on its Partner's
etc. Agencies for auditing are Costy,
income and assets
time consuming and have a negative
impact on public discoulre of the
company
Transfarable Ownership
(Huston, 2021) Potential conflilct
Ownership Transfare is more challenging in LLCs
Every member has the ablity to buy and sell thier
compared to other corporations as adding new
shares and so this results in diffirent Goals or
members or changing ownership percentages requires
expectations from members which can lead to potenial
uanimous aggreement unless stated other wise in the
conflicts in the mangaement of the company
member agreement

(Portal, 2023)
Financail Benefits and Risks of
LLC

Benefits Risks
It might be difficult to raise financing
requires a reltavly low Capital of 20,000 because investors might be more inclined to
CHF invest in corporations.

Shareholders Have the right to leave the

Liabilty is limited to Share capital
compnay which might coause implications
in the managment
Flow through income taxation

(Portal, 2023)
Strategic advantages and ADVANTAGES
disavantages of
LLC • Flexible (in ownersh ip)
• Compna y na me is not affceted if one of the
owners lea ve
• Compan y ca n be transferred to AG without
DISADVANTAGES dissulotion

• " Anonymity of pa rtne rs

impossible "(UPcounsel , 2023)
• Possibility of unlimited n umbe r of
partners
• Tax es on personal income
What type of company/venture does LLC
fit into?
"Small and medium-sized private
companies"
(Portal, 2023)
(dolla, 2022)
(Upcounsil , 2020)
There is no specific sector in which LLC
can fit into due to its universality and
limited liability
 Bibliography

dolla. (2022). 7 well-known LLC examples from popular companies - doola: Form your LLC, DAO LLC, or C Corp from anywhere.

[online] Available at: https://www.doola.com/blog/llc-examples/

Portal, SME. “Responsibility, Share Capital, Establishment.” LLC, [Accessed 1 May.2023]

https://www.kmu.admin.ch/kmu/en/home/concrete-know-how/setting-up-sme/starting-business/choosing-legal-structure/llc-sarl.html.

[Accessed 1 May.2023]

Upcounsil (2020). Well Known LLC Companies: Everything You Need to Know. [online] UpCounsel. Available at:

https://www.upcounsel.com/well-known-llc-companies#:~:text=Pepsi%2DCola [Accessed 2 May 2023].

UPcounsel (2023). How to Hide Ownership of a Company? Anonymous Companies. [online] UpCounsel. Available at:

https://www.upcounsel.com/how-to-hide-ownership-of-a-company.
 Bibliography

GrassHopper (2019). Pros and Cons of Sole Proprietorship, LLC and More - Grasshopper. [online] Grasshopper. Available at:

https://grasshopper.com/resources/jump-starting-and-growing-your-business/nuts-and-bolts/.

Huston, H. (2021). How to Form an LLC, What is an LLC, Advantages Disadvantages And More. [online] www.wolterskluwer.com.

Available at: https://www.wolterskluwer.com/en/expert-insights/how-to-form-an-llc-what-is-an-llc-advantages-disadvantages-and-more.

Grasshopper. (2019). Pros and Cons of Sole Proprietorship, LLC and More - Grasshopper. [online] Available at:

https://grasshopper.com/resources/jump-starting-and-growing-your-business/nuts-and-bolts/.

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THANK YOU FOR
YOUR ATTENTION