Limited Liability Partnerships
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 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.
Set out below are further details on an LLP including, what it is, how to incorporate a LLP, its disclosure requirements, any restrictions on its choice of name as well as what should be included in a LLP members’ agreement.