Limited partnership

A limited liability company (LLC) or a limited liability partnership (LLP) is a commercial company with the status of a legal entity, the capital of which is divided into equal, cumulative and undivided shares. Its partners are not personally liable for the company's debts, but only for the amount of the capital contribution. It is widely used by small self-employed entrepreneurs who thus limit their liability to the capital contributed, avoiding being liable for the debts of their business with their personal assets. According to information provided by Santander Bank.

Characteristics of the limited partnership

The rules of limited liability companies determine their characteristics, the most relevant of which are as follows :

• The minimum number of members is one, with no maximum. If there is only one partner, a sole proprietorship is established. They can be natural persons or legal entities.
• The liability of the partners is several and is limited to the investment of the capital contributed to the company.
• The company name shall consist of the company name followed by the initials L.P. or L.L.C, as the case may be; it must be registered in the Mercantile Register and its name must not coincide with any other name already registered with another company.
• The minimum share capital is EUR 3,000/PLN 5,000, which can be paid in cash or in kind.
• The social capital can be divided into shares and transferred preferentially between partners.
• The legal domicile must be in the relevant territory; if the limited liability company changes its domicile in this city, it must be coordinated with the company's administrator; if it is changed outside this city, it must be approved at a general meeting.
• L.P. the articles of association must indicate the object of the company, i.e. what the company's main activity will be.
• A management body must be defined and enshrined in the statutes. In addition, they have a supreme body, the general meeting of members, from which decisions affecting any aspect of the L.P. are taken.
• Limited liability companies must file quarterly and annual VAT returns and pay corporate income tax.

References

• Mancuso, A. (2022). Your Limited Liability Company: An Operating Manual. Google Books.
• Mancuso, A. (2021). Nolo's Quick LLC: All You Need to Know About Limited Liability Companies. Google Books.
• Stooker, R. (2010). Master Limited Partnerships. Google Books.

Author: Mónica Guijarro,Gabriela Valera,Zaira Bancells