I have bn studying and trying up manager for sometimes now. My biggest challenge is how to set up the ownership accounts for a limited liability company.
By our laws, a limited liability company can have sole owner but the company and the owner are separate entities. Can u help with how to setup the capital and shareholding accounts. Please I have read a lot on the forum but I am not getting things straight forward.
Thanks.
Are you talking LLC (USA) or LTD ( Limited Liability Corporation)
LLC don’t have shareholders but LTD do have shareholders
Fully read through this topic
I am in Ghana. It a limited liability company owned by an individual.
In that case, at the bottom of the above attached topic there is an illustrated example on how to set up using Issued Shares and Shareholders Loan A/c…
Thanks.
I will check and if anything I will get back to u.
You may also be able to use the simpler approach outlined in this Guide: Simplify equity accounting for sole traders / proprietors | Manager. A local accountant will be able to verify whether you qualify under Ghana’s laws.
No they can’t, they are a corporation - they have shareholders - they have misused the term LLC.
In USA terms - they are an INC.
I was going from @Citusgler’s statement “owned by an individual.” I know terminology on LLCs varies, but so do laws on how individually owned entities are regulated and taxed. I don’t know the law in Ghana.
And they also very clearly stated - “but the company and the owner are separate entities”.
This in itself disqualifies the sole trader scenario no matter how the LLC terminology may vary.
An individual can own a corporation now, even though once upon a time a corporation (right around the world) had to have a minimum of two shareholders but it became evident that in the majority of $2 corporations the second shareholder was a sleeper, just there to satisfy the two shareholder law rather then being there as an “active & willing” participant in the business, however, they were equally exposed to any legal regulations. So as to remove these lame duck shareholders - single shareholder owned corporations were born and have become the norm.
Saves you having to find a replacement shareholder when divorces occur.