CORPORATE LAW

Limited Liability Partnerships (LLPs)

Business > Corporate > Limited Liability Partnerships

Legal Support for LLP Formations

Business entity formation is a key part of creating a business, so it’s important to have an expert’s opinion on what format best suits you.

Call our expert LLP Formation Solicitors on 0330 912 8338 for a no-obligation chat today.

If you’re considering forming your business as a Limited Liability Partnership, our Business Law Solicitors have an in depth knowledge of the best way to set one up and the alternatives under this structure or otherwise.

Need Legal Advice?
Call 0330 912 8338 for a no-obligation chat with one our experts today.

Need Help?

Call 0330 912 8338 to have a no-obligation chat with our expert Business Law Team. They’ll be happy to talk through the process with you, explain what we do, and answer any questions you have.

Alternatively, you can email us with your query and we’ll help in any way we can.

Limited Liability Partnerships FAQs

What is a Limited Liability Partnership (LLP)?

A Limited Liability Partnership (LLP) are a way for forming a business with someone else. In this structure all or some of the partners have limited liabilities. In this form of company, each partner is not liable for the negligence or misconduct of another, the way that they would be if the company was formed with a different method.

Who is Liable for Limited Liability Partnerships (LLPs)?

The partners of an LLP are liable for their business collectively. However, it is broken down differently than other business formation models. Each partner acts an agent of the business and is only liable up to the amount that they have contributed to the business.

Limited Liability Partnerships (LLPs) and Tax

LLPs are tax transparent, this means that all of the partners are subject to the same tax treatment as general partnerships and their partners. As a result, all partners are taxed individually on their share of the profits.

Instead of paying corporation tax, each partner has to register with HMRC for Self-Assessment, file a tax return every year and pay Income Tax and National Insurance Tax on their income.

What is the difference between LLP vs Ltd companies?

The main different between an LLP and Ltd company is the ownership and the business hierarchy system they use. A LLP only has members whereas an Ltd company has directors and shareholders and the agreement that the partners make in an LLP are equivalent to a Shareholders Agreement, cutting out this extra step.

Which businesses can use LLPs?

Any business can form their business as an LLP if they wish, however, it is much more common for business that operate in professional services like: Solicitors, Accountants and Architects.

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Still Need Help?

Call 0330 912 8338 to have a chat with our Corporate Law experts.