In: Economics
Discuss the differences and similarities between these three business forms :
1. Differences and similarities between LLC in USA vs SARL in Lebanon
2. Corporation in USA vs S.A.L in Lebanon
3. General Partnership in USA vs. Unlimited Partnership in Lebanon
Question1) Answer
SARL is a private limited liability company (Societe a responsabilitie limitee). - is a special form of a commercial company in that it combines features that are characteristic of both capital companies (e.g. limitation of shareholder's liability to the extent of their contribution) and partnerships.
A Luxembourg LLC of Limited Liability Company is officially known as a "Societe a Responsabilite Limitee (SARL) . It is a cross between a corporation and a partnership. Its members (Partners) Liability is limited to their contributions to the Company.
LLC in USA
A Limited Liability Company or LLC like a corporation, a limited liability company, or LLC is a separate and distinct legal entity. This means that an LLC of the USA can get a tax identification number, open a bank account, and do business, all under its own name.
Foreign citizens don't need a US address to incorporate a business in the United States. If forming an LLC, a foreign company can own the US LLC. An annual tax return is required, and most states will require incorporation renewal each year as well.
Corporation in USACorporation refers to any corporation that under United States federal income tax law, is taxed separately from its owners. Corporations are corporations that elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.
S.A.L. in Lebanon
Societe Anonyme libanaise, abbreviated s.a.l. is the French term for a joint-stock company in Lebanon. Its main characteristic is the intuitus pecuniae - the financial involvement of each associate. A joint-stock company is an association of funds contributed to by three or more persons.SAL is more anonymous in nature that the identity of the shareholders does not play an important role in the company's business.
General Partnership in USA
The general partnership agreement is simply an agreement between the partners. Only companies such as LLP, LLC, and corporations, where there is limited liability for the owners, are required to register. The partners in a general partnership have unlimited liability for the debts and obligations of the partnership.
A General Partnership is a business arrangement by which two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a jointly owned business., In a general partnership, partners agree to unlimited liability meaning liabilities are not capped and can be paid through the seizure of an owner's assets. Furthermore, any partner may be sued for the business's debts.
In general, the partnership must satisfy the following conditions:
Unlimited Partnership in Lebanon.
Partners are jointly and severally liable for their liability is unlimited. The type of entity of a partner in a joint liability company is of primary importance, A joint liability company has the following features.