Choosing Your Business Structure: S.L. vs. S.A. Company Types
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Limited Liability Company (S.L.)
A capitalist company structure, ideal for businesses with a limited number of partners and moderate capital requirements.
General Characteristics of an S.L.
- The number of partners can be one or more. Single-member companies are known as sole proprietorships.
- The partners' liability is limited to their capital contribution; they are only responsible for the capital invested.
- The share capital is divided into shares. It must not be less than €3,000. At the time of incorporation, the capital must be fully subscribed and paid; no unpaid liabilities (unpaid portions) are permitted. Capital can be contributed in cash, property, or rights.
- The corporate name must be followed by "S.L." or "S.R.L." (Sociedad de Responsabilidad