Basic LLP Agreement
The Basic LLP Agreement is a simple and short legal document which covers the key issues arising in a straightforward LLP arrangement. This template might be used by a small business (or professional services firm) requiring a simple LLP structure.
This Basic LLP Agreement is derived from the long form LLP agreement and covers all the main points but in a simpler form. It provides for equal capital contributions, equal sharing of profits and losses, that all the partners will work full time in the business and manage the business jointly, that no member can be expelled without the unanimous written consent of all the members and that two designated members shall be appointed.
For a fuller and more sophisticated LLP agreement, the Simply-Docs Long Form Partnership Agreement may be more appropriate.
The Basic Partnership Agreement contains the following clauses:-
- Nature of business
- Name of business
- Admission of new partners
- Start Date
- Accounts date
- Partners’ entitlements
- Designated Members
- Management of the partnership
- Full time and attention clause
- Termination of Membership
- Expulsion of partners
- Amendment of the Agreement
- Dealing with disputes
- Governing law
This agreement is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
This agreement has been updated to reflect 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 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.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
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