Transforming a sole proprietorship into a LLC
The conversion of a sole proprietorship into a public limited company (PLC) offers opportunities for growth and capital procurement through the issue of ordinary shares. However, there are legal and financial aspects that need to be carefully examined.
![transform a sole proprietorship in LLC](https://cdn.prod.website-files.com/664afa58ea1f28fa682ef57a/668d0a4967e32d8d584a7981_Einzelfirma%20in%20AG.webp)
How can my sole proprietorship be converted into a LLC?
Calculate a non-binding offer
Enter your incorporation project conveniently online and benefit from the cost sharing of our partners. Put together your customized start-up package with just a few clicks so that we can set up your GmbH for you.
Enter company data of the LLC
Enter all relevant company data so that we can carry out the conversion process according to your company structure.
Contact by lawyers
Our experts will get back to you within the specified period (often within 24 hours). Open questions can be discussed and the next steps will be explained.
Audit and confirmation of the company value
An accounting statement must be prepared by the sole proprietorship to be converted. These must then be audited by an auditor and the value of the sole proprietorship confirmed. The audit can be carried out by our sister company Findea AG.
Creating incorporation documents
Once the company value has been confirmed, our experts will prepare the incorporation documents and make them available to you. You can check, print and sign them at home.
Have your signature notarized
You must now obtain an official signature certification (e.g. from the municipal office). This confirms that the signature you have provided is really your own.
Returning the documents
After receiving the founding documents, our experts will check them for completeness and then forward them to the notary's office for public notarization.
Entry in the commercial register
We submit all incorporation documents to the commercial register and ensure that your sole proprietorship is successfully converted into a LLC.
When does it make sense to convert a sole proprietorship into a LLC?
Conversion of a sole proprietorship to a limited liability company can make sense for several reasons. First, it allows personal liability to be limited to the company's assets, which is particularly advantageous with respect to financial risks.
In addition, the LLC structure can help strengthen the company's professional image and increase the confidence of customers, business partners and investors.
Tax advantages and the possibility of accepting partners or investors also speak in favor of the conversion.
Before making a decision, however, it is advisable to obtain thorough advice in order to weigh up the individual advantages and disadvantages and to make an informed decision.
Frequently asked questions
Important points that you should consider when converting your sole proprietorship into a LLC.
What steps are required to convert a sole proprietorship into a LLC?
Accounting financial statements must be prepared for the sole proprietorship. These are then audited by an auditor and the value of the company is confirmed. Finally, the founding meeting and the articles of association must be publicly notarized and all documents must then be submitted to the commercial register office.
Are there specific legal requirements for the conversion?
Yes, all required documents must be prepared and submitted correctly in order to meet the legal requirements.
What are the tax implications of the conversion?
The LLC becomes taxable as an independent legal entity. The profit of the LLC is subject to corporate profit tax. This is in contrast to the profit of a sole proprietorship, which is taxable as income in the private tax return.
How long does the conversion process usually take?
The procedure can take several weeks to months, depending on the individual circumstances and the processing times of the authorities.
What costs are associated with the conversion?
The costs can vary greatly. In particular, the costs for auditing the accounts, which usually amount to at least CHF 1,500, are significant.
Why is a change of legal form in Switzerland advantageous?
There are many advantages to changing the legal form of a company in Switzerland. By converting to an PLC or LLC, the personal liability of the entrepreneur can be limited to the company's assets, which protects against financial risks.
In addition, PLCs and LLCs make it easier to raise capital by issuing shares or ordinary shares, which improves the company's financial stability and growth opportunities. In addition, the conversion contributes to a more professional image of the company, which strengthens the trust of customers and business partners and opens up new business opportunities.
he more flexible structure of the PLC and LLC offers more room for growth and expansion, especially for larger projects or international business activities. Depending on the situation, there may be tax advantages.
However, before converting, the legal, tax and financial implications should be carefully considered and professional advice sought to ensure that the conversion supports the company's long-term objectives.
Transform your company easily with Startups.ch.
Convert sole proprietorship into a PLC
Convert your sole proprietorship into a public limited company (PLC). This will give you more capital and growth potential.
Converting a general partnership into a LLC
Convert your general partnership into a limited liability company and benefit from a professional image.
Convert a general partnership into a PLC
Convert your general partnership into a limited company to expand your investment opportunities and increase your financial stability.
![Consultation business formation Switzerland](https://cdn.prod.website-files.com/664afa58ea1f28fa682ef57a/6686bec82f4386fd68405ef1_Beratung.webp)
Do you need help?
We understand that many prospective company founders want to make sure that they don't overlook anything when setting up a company. So don't hesitate to contact us before you set up your company.