When considering the creation of a company, a recurring question comes to mind: what legal form should be chosen for the company to be? Many criteria must be considered to choose the optimal legal form, such as capital to be invested for the good development of the company, the number of stakeholders (partners or shareholders) for the projector the accepted level of responsibility.

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The minimum capital required for the creation of a Swiss LLC (SaRL/Gmbh) is 20,000 CHF (Swiss francs), which is less than that required for a corporation (SA/AG) which is 100,000 CHF. This allows entrepreneurs to form a company with a relatively modest initial investment. However, it is important to note that the capital must be fully paid up at the time of incorporation of the LLC.

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The partners of a LLC have limited liability, which means that their liability is limited to the amount of the paid-up share capital, i.e. 20,000 Swiss francs. The personal assets of the partners are protected in case of debts or litigation, which offers financial security.

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Unlike a sole proprietorship where the name is usually the name of the owner, a Swiss LLC offers the freedom to choose the corporate name of the business. However, the word “LLC” must be added after the name of the business to indicate its legal form.

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The Swiss LLC can benefit from tax optimization through the distribution of profits. The salary of the Swiss LLC manager is considered an expense for the company, which allows to reduce the tax on profits or at least to keep them at a lower level, depending on the specific tax situation.