What is an LLC or a limited liability company?

Every entrepreneur should understand what an LLC is. A limited liability company means an organization whose authorized capital includes shares distributed among the founders. It has the following characteristic features:

- the statutory fund is organized by equity participation of the founders;

- members of the company are liable only in an amount not exceeding the amount of the contribution;

- create such an organization can both a legal entity and an individual ;

- as founders can act one person or a group of persons.

When deciding what an LLC is, it is worthwhile to understand that as a proprietor and a founder one person can act, but a single person is not allowed within the company. The number of employees can reach 50 people and no more. When organizing a legal entity, constituent documents are drawn up . A charter is formed in a limited liability company. Each founder has the right of free exit with a refund of the invested amount in full. If the deposit was carried out by securities or property benefits, the other participants are obliged to return an equivalent amount at a certain time (not more than three months).

Answering the question about what an LLC is, you should not forget that this is primarily a legal entity, which means that you need a legal address. According to the current legislation, the actual address is not allowed to differ from the one specified when registering with the tax service. The location of the company influences the efficiency of its activities, therefore it is necessary to select the future office or building for the enterprise taking into account the specifics of production or the branch of functioning. In addition, you need to think about how the company's personnel will get to work. Large firms provide a vehicle, thus showing care for each employee.

For the development of the company, initial capital is formed for the first time, it is also called charter capital. Then this amount serves as a reserve capable of saving an enterprise in the event of unfavorable circumstances. In our country, the amount of 10 thousand rubles is set, in the presence of which registration of a limited liability company is allowed.

The structure of the LLC includes two management bodies:

1. The main thing is that it is a meeting of founders, which is organized without fail and is designed to solve the most important strategic tasks.
2. 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 the founders, the executive body is elected, which solves current problems that regularly arise in the course of activities. As a rule, the executive body is the body of one-man management headed by the general director or the president of the company. Internal audit is carried out by a special audit commission, organized specifically for this purpose.

It should be clarified that the form of ownership of the LLC allows for changes in the constituent documents. At the same time, significant changes must be reflected in the charter and registered by the state body. In particular, this concerns the change in the number of participants in the society. So, if their number exceeds the mark of 50 people, by law it will be necessary to re-form the enterprise into a joint-stock company or create a production cooperative.

Some business entities that have temporarily free cash and want to invest them with profit, think about what an LLC is and whether it is possible to enter into it a legal entity. In practice, such relations are often concluded, and there are no obstacles to such agreements in the legislation. There is only one condition: there must be more than one person in this economic entity.