Setting up an LLC in Switzerland: pros and cons

The LLC (limited liability company) is one of the most common legal forms for small and medium-sized companies in Switzerland. It offers a clear separation between private and business assets and provides attractive liability protection.

‍

Setting up an LLC: advantages

• Limitation of liability: Probably the biggest advantage of an LLC is the limitation of liability. As a shareholder, you are only liable with the business assets of the LLC, while your private assets remain protected.
  

• Flexibility in management: An LLC can be managed by both individuals and several shareholders. The shareholders can take over the management themselves or delegate it to external managing directors.

• Positive external perception: An LLC often appears more professional and trustworthy in business transactions than a sole proprietorship. This can help to attract larger business partners.

‍

Setting up an LLC: disadvantages

• Higher minimum capital: In contrast to a sole proprietorship, setting up an LLC requires a minimum capital of CHF 20'000. This presents a hurdle for some founders who may not have the necessary funds.

• More complex formation process: The formation process for an LLC is more complex than for a sole proprietorship. You need a certificate of incorporation and articles of association, and entry in the commercial register is mandatory.‍
  

• Additional administrative costs: The ongoing administration of an LLC requires additional costs and administrative duties, such as the accounting obligation and the preparation of an annual financial statement.

‍

Conclusion

The LLC offers many advantages, in particular the protection of private assets, and is therefore a very attractive choice for entrepreneurs in Switzerland. However, the minimum capital requirement of CHF 20'000 is not suitable for all founders.

Do you want to set up your LLC efficiently? Startups.ch supports you before, during and after setting up your business.

‍

^{Find out more about the costs and legal steps}

^{Calculate a non-binding offer now.}