Information on LLPs
LLPs combine the flexible structure of a general partnership with the benefits of limited liability.
LLPs – Some Differences from General Partnerships
The owners of an LLP are called members, rather than partners, and within certain parameters are not treated as employees.
Unlike a general partnership, an LLP has a separate legal existence separate from its members.
LLP members usually have limited liability, although this is lost in certain circumstances, including where there is a sole member of the LLP and it continues to trade as an LLP for 6 months.
An LLP has to prepare and file accounts (and make other filings) at Companies House in a broadly similar way to a private limited company.
LLPs – Some Similarities to General Partnerships
An LLP has some of the organisational flexibility of a general partnership. Certain functions should be clearly designated to individual “members”, but, subject to that, the members are free to agree how to share profits, who is responsible for decisions and how decisions are made, how and when new members are appointed, and the circumstances in which members leave.
Like a general partnership agreement, the members’ agreement (usually called a LLP Deed) is confidential between the members.
If you would like to discuss your partnership, partnership agreement or converting your partnership to an LLP or Private Limited Company, please do not hesitate to contact BakerLaw’s Head of Company and Commercial Jonathan Craig at email@example.com or 01252 730 754