IE vs LLC in Armenia: Which business structure is right for you?
Choosing between an Individual Entrepreneur (IE) and a Limited Liability Company (LLC) is one of the first decisions every business owner in Armenia faces. Both have advantages depending on your situation — this guide helps you pick the right structure.
What Is an Individual Entrepreneur (IE)?
An IE is the simplest form of business in Armenia. You operate under your own name, there are no shareholders, and registration takes just 1 business day. It's ideal for freelancers, solo consultants, and small service businesses.
IE at a Glance
- ✅Registration in 1 business day
- ✅No minimum capital required
- ✅Simple accounting and tax reporting
- ✅Can use 1% turnover tax if in IT/tech
- ⚠️Full personal liability for business debts
- ⚠️Cannot have multiple owners/shareholders
What Is a Limited Liability Company (LLC)?
An LLC is a separate legal entity from its owners. It can have one or more shareholders, and liability is limited to the company's assets. It's better for businesses with multiple founders, investors, or those seeking to raise capital.
LLC at a Glance
- ✅Limited liability — personal assets protected
- ✅Can have multiple shareholders
- ✅More credible with partners and investors
- ✅Registration in 3–5 business days
- ⚠️More complex accounting requirements
- ⚠️Requires a charter and shareholder agreements
Which Should You Choose?
| Factor | IE | LLC |
|---|---|---|
| Registration time | 1 day | 3–5 days |
| Personal liability | Full | Limited |
| Multiple owners | No | Yes |
| Investor-ready | No | Yes |
| 1% IT tax | Yes | Yes |
| Accounting complexity | Simple | More complex |
Not sure which is right for you?
Book a free consultation with Documan and we'll guide you to the best structure for your specific business goals.