A Limited Liability Partnership (LLP) is an alternative corporate business vehicle that gives the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership. The LLP is a separate legal entity (like a company) and, while the LLP itself will be liable for the full extent of its assets, the liability of the members will be limited to the amount of money they invest in the business.

Individual members of a LLP are treated as self-employed for tax purposes similar to partners in a partnership and therefore they must pay income tax and national insurance on their share of the LLP’s profits.

LLPs are most often set up by professional services firms, like solicitors or accountants.

The overarching legislation applicable to LLPs is the Limited Liability Partnerships Act 2000. This is supplemented by various regulations made applicable to LLPs by implementing secondary legislation. Most recently, many provisions relevant to companies under the Economic Crime & Corporate Transparency Act 2023  (ECCTA), have been introduced for LLPs. Most prominently this has seen the identity verification regime provisions rolled out to LLPs as well as companies registered with Companies House.

Set out below are further details relating to LLPs including, what they are, how they are incorporated, their disclosure requirements, any restrictions on choice of name as well as what should be included in a LLP members’ agreement.