Limited Liability
Partnership (LLP)

An LLP is a business partnership where each member’s liability is limited to the amount that they have contributed to the business. There must always be at least two members although there is no set maximum number of members of an LLP. A member can be an individual or a company. Each member is liable (jointly and/or severally) for their own actions and pays tax on their share of the profits. A partnership differs from a limited company in many ways, for example there is no share capital, but it does offer the same limited liability (unlike a standard Partnership). The LLP structure is typically used to operate law firms, accountant practices, and healthcare businesses, but can be used in a range of sectors.

Requirements

• An LLP must have a minimum of two members who have the intention to starting lawful trade with ‘a view to profit’.
• At least two members must be ‘designated members’ (which carries more responsibility).
• The name must end in LLP or Limited Liability Partnership.
• The name cannot be considered ‘the same as’ an existing company or contain sensitive words.

Benefits of an LLP

• Limited liability
• Organisational flexibility of a partnership
• Can suit a range of businesses
• Combined skills and expertise
• Shared workload

To incorporate your LLP or discuss your needs further, click the link below to contact us now.