Personal Liability Company (Inc.)
Registration

A Personal Liability Company (Inc.) is a type of private company predominantly used by professional associations, such as lawyers, engineers, and accountants. One of its defining features is that both current and past directors are held responsible for the company’s debts.

There are several benefits to incorporating a Personal Liability Company Inc.:

• Security: It offers enhanced protection for the company’s owners.
• Flexible Profit Distribution: Unlike other company structures, a Personal Liability Company Inc. allows its owners the freedom to decide how they wish to distribute profits among the company’s members.

While both are incorporated entities, there are subtle differences. Private companies can be incorporated by one or more individuals, must have at least one director, and cannot offer its securities to the public. On the other hand, Personal Liability Companies can also be incorporated by one or more persons but have the added feature of holding directors personally liable for the company’s debts.

To register a Personal Liability Company, you only need a minimum of one director.

One of the advantages of a Personal Liability Company Inc. is its tax efficiency. The company’s profits aren’t subject to double taxation. Corporate taxes aren’t levied on the profits, and taxes are only paid once on the profits distributed to individual members. Moreover, owners have the flexibility to decide how they want these profits distributed.

At Company Partners, we specialize in guiding professionals like you through the process of registering a Personal Liability Company. Our experienced team ensures a smooth registration, allowing you to focus on your profession while we handle the complexities. With our expertise, you can trust us to set up your company efficiently and compliantly.