Guidance Note: Limited Liability Partnerships (LLPs)

This Guidance Note: Limited Liability Partnerships (LLPs) introduces the main legal principles relating to LLPs as a business vehicle.

It is intended to help readers understand the legal issues involved in forming an LLP and putting in place an LLP agreement, as well as how LLPs fit within wider business-structure choices.

What does this guidance note help you with?

• Choosing an appropriate business structure and understanding when an LLP may be suitable.
• The key legal issues involved in forming an LLP.
• The main points to consider when preparing an LLP agreement.

Topics covered in the note

• The PSC regime as it applies to LLPs.
• Filing small LLP accounts.
• LLPs qualifying as micro-entities.
• The confirmation statement as it applies to LLPs.

How this guidance fits with the other templates

This guidance note should be read in conjunction with the other LLP templates in this collection, in particular the Basic LLP Agreement and the Limited Liability Partnership Agreement.

LLP members and “worker” status

This guidance note considers the Supreme Court ruling of May 2014 relating to the status of LLP members as “workers” for the purposes of the Employment Rights Act 1996.

This means that individual LLP members will enjoy the statutory rights and protections conferred on “workers” under legislation, governing amongst other things, whistleblowing protection, rest breaks and paid annual leave.

Update note

This note has been updated as of 26 June 2017 to incorporate the changes made to the PSC regime as of that date.

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