What are the key differences between an LLC company and a Sole Proprietorship?

Hello,

An LLC is a separate legal entity with its own legal status. It is typically owned by multiple shareholders. An LLC in the UAE must have at least two shareholders, but no more than 50 shareholders.

A Sole Proprietorship is owned by one individual. It is typically a single-owner business and does not involve any partners or shareholders.

The owner has full control over the business decisions and operations.

Under UAE law, a Limited Liability Company (LLC) allows for multiple partners and limits the personal liability of the owners, while a sole proprietorship is fully owned by one individual who assumes full responsibility for all debts.

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Limited Liability Company (LLC): Suitable for businesses that plan to expand or need to protect the legal liability of partners.

Sole Proprietorship: A good option for professionals, consultants, and small business owners looking for a simple structure.

Greetings,

The difference lies in the fact that a limited liability company has a legal personality independent of the partners' personality, while in a sole proprietorship, there is only one personality.

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Best Regards,

They differ in liabilities and the distribution of capital. A Limited Liability Company (LLC) is limited to its members, while an individual company is owned and managed by one person and has unlimited liability. Contact us at [---------].