A limited liability entrepreneur is a natural person who carries out an economic or professional activity on his own account and his patrimonial responsibility is unlimited before third parties.
In order to access the status of limited liability entrepreneur, it is necessary to grant a notarized deed in which the will of the entrepreneur to access this condition is collected. The data related to the habitual residence that you want to be unattachable in case of professional debts must also be included.
On the other hand, like the notarial deed, in these cases an instance can be completed by means of the electronic signature and present it in the Mercantile Registry of the domicile of the self-employed person. It will be the Mercantile Registry that deals with processing in the corresponding Property Registry, the proof in the registration entry of the habitual residence of the self-employed person that it belongs to an ERL.
Present the accounts in the Registry
To maintain the status of limited liability entrepreneur, the entrepreneur must present his accounts as if he were a Unipersonal Limited Liability Company. This means that he will have to deposit the annual accounts in the Mercantile Registry within the first seven months of each year. If the annual accounts are not deposited within the term, he will lose the status of limited liability entrepreneur, although it is true that he could recover said status once the accounts are deposited in the Mercantile Registry.
Likewise, it is important that those who contract with the self-employed know that they are contracting with a limited liability entrepreneur, so the entrepreneur will have to advertise this condition in all their documentation. In this case, it is necessary that either in the budgets, in the invoices and in the rest of the documentation of the entrepreneur, the registry data is included and it is stated that he is a ‘Limited Liability Entrepreneur’ or add ‘ERL’ to his name , surnames and tax identification data.
It should be remembered that the limitation of the entrepreneur’s liability is not total, so in the event that you want to limit liability, it is advisable to create a Unipersonal Limited Liability Company.