SLU (Sociedad Limitada Unipersonal).

StellaBlue

Member
American English
Hello, does anyone know how to describe this type of company in American English? Wikipedia describes it as follows:

En la legislación española se aceptan las sociedades limitadas unipersonales, conservando el socio único la limitación de responsabilidad frente a terceros, siempre y cuando cumpla unos requisitos formales ("declaración de unipersonalidad" que ha de ser inscrita en el Registro Mercantil, llevanza del "libro de contratos con el socio único").

Thanks very much in advance!
 
  • David

    Banned
    I would use "limited-liability sole proprietorship." A one-owner company is called a "sole proprietorship" for obvious reasons, and responsabilidad limitada is "limited liability." "Member" is not an accurate translation of socio.
     

    RicardoElAbogado

    Senior Member
    American English
    Unfortunately, "limited-liability sole proprietorship" is not a concept known in US law. In fact, it's an oxymoron. A sole proprietorship, by definition, does not have limited liability.

    When limited liability companies were established as a new form of business organization in the US (around the start of the 90's), a new term had to be established for the owners of such a company. The term "partner" could not be used as that would imply the form of business organization was that of a partnership, and a partnership generally implies that one or more persons have unlimited liability for the obligations of the business. So the term "member" was adopted. From an economic perspective, a member is to a limited liability company the same as a partner is to a partnership or as a stockholder (or shareholder) is to a corporation. Consequently, "member" might be an acceptable translation of socio here.

    The acronym for a single-member limited liability company is SMLLC, but that is not a universally understood acronym. It is usually defined the first time it is used in a text. For example: "Those wishing to form a single-member limited liability company ('SMLLC') should ...."
     
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