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Company (khevra, חברה) – for-profit entity which may engage in any lawful activity. Most companies limit the liability of their shareholders. In that case, the phrase "Limited" or the abbreviation "Ltd." must appear as part of the full name of the company. The term "B.M."/"BM" (בע"מ), literally: by limited liability/warranty, is usually translated as "Ltd." in English and pronounced "ba'AM" in Hebrew. Companies are governed by the Companies Act, 5759-1999 (חוק החברות, תשנ"ט-1999). Few sections are still in force from the Companies Ordinance [New Form], 5743-1983 (פקודת החברות [נוסח חדש], תשמ"ג-1983).
Sole Proprietorship – A sole proprietorship, also known as a trader firm or proprietorship, is a business firm that is owned and run by one individual. A sole proprietor may use a trade name or business name other than his or her name. Registration not required – In summary, biggest advantage is quick formation and low compliance. However, the biggest disadvantage is unlimited liability.
For over 40 years Nolo has been publishing affordable, plain English books, forms and software on a wide range of legal and business issues, including estate planning, small business, personal finance, housing, divorce and intellectual property. Everything we publish is regularly revised and improved by our staff of lawyer-editors, to make sure that it's the best it can be. We pay close attention to changes in the law and we'll make sure your online legal documents stay legally up to date.
Filing a limited liability company separates your personal assets from those of your business. This prevents you from being financially responsible for debts and liabilities of your business. Even though members are still liable, that liability is limited to the extent of their investments in the business. If, for instance, your company is involved in a lawsuit, the assets of the LLC itself could be in jeopardy, while the personal assets of the members/owners would be protected.
Outside of the normal statement filing season, you may fill out a Statement of Change form with the date you went out of business, the status and disposition of any equipment owned or used by you at the time the business closed. If any of the property was sold to another person or business, please indicate the buyer's name and address. Make sure to identify any property that reverted to your own personal use as household personal property.