Sole proprietorship vs Sàrl (LLC)
Compare the two structures side by side — liability, tax, social charges and costs — then answer 5 quick questions to see which fits your project.
Criterion
Sole prop.
Sàrl
Minimum capital
None
CHF 20'000
Liability
Unlimited (personal assets at stake)
Limited to the capital
Commercial register
Required above CHF 100k turnover
Required from incorporation
Accounting
Simplified (if turnover < 500k)
Full accounting mandatory
Social contributions
AVS on net profit
AVS on salary only
Taxation
Profit taxed at personal rate
Double taxation (company + dividend)
Credibility
Limited (no "Sàrl" in the name)
More credible (banks/clients)
Transfer / Sale
Not possible (it's you)
Possible (sale of shares)
Formation cost at Klear
From CHF 190
From CHF 490
Ideal for
Freelancers, activities < 100k
Growth, asset protection
Quick quiz
Sole proprietorship or Sàrl for you?
Your estimated turnover?
Do you have significant investments (equipment, stock)?
Do you want to protect your personal assets?
Are you planning to hire?
Is your activity risky (liability, disputes)?