{"id":63005,"date":"2025-10-06T14:16:16","date_gmt":"2025-10-06T14:16:16","guid":{"rendered":"https:\/\/emprendix.com\/?p=63005"},"modified":"2026-02-09T22:17:40","modified_gmt":"2026-02-09T22:17:40","slug":"what-is-the-difference-between-an-sl-and-an-slu","status":"publish","type":"post","link":"https:\/\/emprendix.com\/en\/what-is-the-difference-between-an-sl-and-an-slu\/","title":{"rendered":"What is the difference between an SL and an SLU?"},"content":{"rendered":"

If you\u2019re thinking about creating an LLC in Palma de Mallorca<\/strong><\/a>, it\u2019s important to understand all the legal options available under Spanish law before choosing a specific company structure. Making the right choice can make a real difference in the growth and protection of your professional activity.<\/p>\n

Having a specialized business consultancy in Palma de Mallorca<\/strong><\/a> will help you evaluate which type of company best suits your interests \u2014 whether it\u2019s a traditional Limited Liability Company or a less common form, such as a Single-Member Limited Liability Company (SLU).<\/p>\n

Differences between a Limited Liability Company and a Single-Member Limited Liability Company<\/h2>\n

The main difference between a Limited Liability Company (SL) and a Single-Member Limited Liability Company (SLU) lies in the existence of a single shareholder. In an SLU, 100% of the shares belong to one person \u2014 either an individual or a legal entity. This condition must be explicitly stated in all company acts and documents, as well as registered in the Commercial Registry from its incorporation.<\/p>\n

If this single-member status is not properly recorded in the Commercial Registry, the sole shareholder may be personally and jointly liable for the company\u2019s debts incurred during the period in which such status was not officially declared. However, for tax, accounting, and labor purposes, there are no substantial differences compared to a standard Limited Liability Company.<\/p>\n

The single-member nature does not restrict the company form, meaning there are also Single-Member Public Limited Companies (SAU). What matters is that the company adopts the corresponding legal framework with the specific requirements that come with single ownership.<\/p>\n

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Main characteristics of a Single-Member Limited Liability Company<\/h2>\n

The Single-Member Limited Liability Company is regulated by Articles 12 and following of the Spanish Companies Act, derived from EU Directive 89\/667. This legal structure allows an individual entrepreneur to operate with limited liability toward third parties, protecting personal assets against company debts.<\/p>\n

There are two types of single-member companies:<\/p>\n