Limited Liability Company

Commercial Limited Liability Company 1. Background. In discussing the evolution of the corporation, initially there was interference with property and strict state control in the formation of such societies, they were created to enable mass participation in companies in big cities. The corporation was the main form of company that, faced with limited partnerships and collective allowed until the mid-nineteenth century to limit the risk of all partners to the amount of their contributions. Faced with this situation and because of the need to promote the development of small and medium enterprises in a private, liability company emerged in Europe in the nineteenth century, as an alternative to the regime offered partnerships, limited partnerships and limited liability . In the first two the responsibility of the general partners is unlimited and they responded with their personal assets for the debts. On the other hand, although the corporation limited the liability of the members of their contribution, this was adequate primarily as a means of association for large firms. In this context appears limited liability companies as a type that combines the personal factor of the limited partnerships and collective, with the limitation of liability that had hitherto been a feature of joint stock companies. But it can not be said to have been created for small and medium only empresas.La first legislative regulation of what today is the limited liability company was in Germany. In other European countries during the first decades of the twentieth century are now known varieties of the limited liability company.