The disadvantages of the LLC

The LLC induces a certain formalism: drafting of statutes, held as a mandatory annual ordinary general meeting to approve the annual accounts, balance sheet and management report to be filed with the transplant,all statutory changes must be made in Assembly.Thus, the sale of shares to third parties are subject to a decision of the majority of the partners while it may be useful to unanimously.

Another drawback,the transfer of shares between the partners are free. But that does not always meet the goal sought by those who wish to join.

Manager minority or majority?

The partners have the opportunity to appoint one or more manager.The choice between a single manager and joint management can be influenced by motives of a fiscal and social criteria specific to the organization of society.

creat llc

Unlike the tax system, social system depends on whether managers are majority or minority. Note that a manager if he has a majority, with their spouse. his partner under a PACS and minor children, over 50% stake in the company. The majority manager is subject to the regime of self-employed,while the minority manager is the general scheme of Social Security and, if applicable, supplemental executive retirement, since he receives remuneration.In contrast, the minority manager unpaid does not depend on compulsory social security.The managers of limited liability company, minority or majority, are excluded from unemployment insurance available to employees. and tax side? The remuneration of the managers, whether majority or minority, is subject to the pay and wages.

What to remember

– The limited liability company, tightly controlled by law, is reassuring because the partners’ liability is limited to their contribution, except in cases of mismanagement.

-The LLC can be created by two to 100 members, persons or entities.

-The equal distribution of shares is to be avoided.

The majority manager of the system is self-employed. The minority of the general manager of Social Security.