LLP Checklist
This LLP Checklist helps you focus on the decisions that need to be made when setting up an LLP. It also helps you choose which of the Simply-Docs LLP agreements to use.
The checklist uses straightforward questions to help you work through the key legal and commercial points that typically need to be agreed between members.
What decisions does the checklist help you work through?
- Capital contributions.
- Drawings.
- Profit and loss sharing.
- Banking arrangements.
- Insurance.
- Holidays.
- Management of the business.
Why a written LLP agreement is often needed
An LLP (unlike a partnership) needs to be incorporated and registered with Companies House. Although it has no articles of association, members will often enter into an LLP agreement, which is a private document.
This checklist helps members focus on the issues they want covered in an LLP agreement, so that certain default provisions implied by legislation do not apply (for example, there being no power to expel a member without their consent).
LLP members and “worker” status
This checklist 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.
LLP Checklist is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.