The owners of a limited liability company (ApS) benefit from certain important advantages that arise from the nature of this form of business. In particular, there is significant protection for the owners as they are not personally, unlimitedly or jointly and severally liable for the company’s financial obligations. This means that their private assets are safe from any debts or financial liabilities of the company.
ApS owners have limited liability, which means that each of them is only liable up to the amount of their contribution to the company. In other words, the financial risk is limited to the possible loss of the money they have invested in the company.
A limited liability company is a separate legal entity, which means that it has its own rights and obligations. If there are assets in the company, then these assets are liable for any financial liabilities of the company. Therefore, for most owners, it is advantageous to hold shares in the limited liability company through a holding company. By transferring some or all of the profit to the holding company, it is possible to protect the profit from the risks associated with the possible financial collapse of the operating company.
Thus, owners of limited liability companies can enjoy the protection of their personal assets and the flexibility to manage their finances and profits.
