General Partnership and Limited Liability Partnership Comparison Matrix
The General Partnership and Limited Liability Partnership Comparison Matrix helps you to choose an appropriate legal structure for your business, by looking at the differences between a general partnership and a limited liability partnership (or LLP).
In general terms, an LLP is more like a company than a general partnership, although it does not pay corporation tax; participants are subject to income tax and NI contributions in the same way that partners in a general partnership are. Significant differences between the two structures are in the areas of liability, dissolution and regulatory requirements.
This General Partnership and Liability Partnership Comparison Matrix includes detail on legal status, liability and management as well as how each business vehicle signs contracts and which types of businesses are most suitable for each vehicle. This comparison matrix 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, unlike partners in a partnership, enjoy the statutory rights and protections conferred on “workers” under legislation, governing amongst other things, whistleblowing protection, rest breaks and paid annual leave.
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