Limited liability partnerships
We can help you to form your LLP and to maintain it legally. Please contact us to discuss it further.
An LLP, incorporated under the Limited Liability Partnership Act 2000, is an ideal vehicle if you want to set up or continue a business in the style of a partnership, instead of operating as a company, but – like a company, you still want the benefit of limited liability. Most of the big accountancy firms have converted to become LLPs.
Because of its limited liability status, an LLP is subject to the Companies Act in certain respects. However, unlike a company, instead of being ruled by the Articles of Association which are available for public viewing you have a Membership Agreement which is kept private. The Membership Agreement is, effectively, the same as a Partnership Agreement and contains all the rules of the LLP. You can agree what rules you want but they should include how profits and losses are shared and how capital is shared.
Members of an LLP can be individuals or companies and have limited liability. You must have a minimum of two Members. Individual members are treated as self-employed for tax purposes whereas, with a company, Directors are treated as being employed.