Limited Liability Partnership
Limited Liability Partnership (LLP)
Limited Liability Partnerships (LLPs) have a fusion of features from a traditional partnership and a limited company. An LLP is a separate legal entity, meaning it can enter into contracts in its own name and also provides its members with the protection of limited liability.
An LLP registration is best suited to professions that historically operated as partnerships – such as accountants and solicitors – that wish to access limited liability without fundamentally changing their structure.
An LLP requires at least two designated members. These are the members that are ultimately responsible for the LLP, fulfilling much the same role as the directors of a limited company. The LLP may also have non-designated members who resemble shareholders of a limited company.
An LLP does not require a Memorandum and Articles of Association, but the partners should seriously consider entering a private Partnership Agreement to decide the share of profit, responsibilities and capital contribution. Blue Sky Formations can assist with a basic Partnership Agreement. Please contact us for more details.
For most businesses, a private limited company will suffice, but because of the differences in the way LLP members are taxed, LLPs are very popular. If you believe that it may be more tax efficient for you to use an LLP rather than a limited company then we would advise that you get advice from your accountant before proceeding.
Limited Liability Partnership (LLP) formation
If you would like to purchase an LLP formation, check your company name below then select the LLP package for just £12.39.
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