The LLP is a relatively recent innovation in the business world. It is the latest type of business vehicle to be introduced after having received official Royal Assent in 2000. It can be loosely described as a hybrid between a limited liability company and a traditional self-employment partnership. It offers the limited liability available to owners of limited companies combined with the tax regime and flexibility available to partnerships.ORDER PACK
LLPs were originally designed by professional partnerships such as accountants, lawyers and architects. They felt the need to limit their own personal liability that may have arisen out of any mistakes created by another partner. However, many other types of businesses can benefit from operating out of an LLP.
For help and advice on forming a limited liability partnership, please call us on (telephone number) or email us at (email address).
Our service is automatic - when you complete your LLP formation application on our website, we'll check the details and submit them straight away to Companies House. As soon as they have approved the documents and your new LLP has been formed, we'll email you to let you know.
Companies House charge for the registration of limited liability partnerships - all Companies House fees are included in our price. Your Company Formations has always had a transparent pricing structure so you know what you're paying for and how much it costs before you choose to use us.
By choosing our limited liability partnership formation package, you'll receive electronic copes of your Certificate of Incorporation, your Memorandum of Association, your Articles of Association, and your limited liability partnership agreement.
In nearly all circumstances, you'll be ready to start trading on the same day that you form your limited liability partnership through us.
For every limited liability partnership, it's important to have a bank account to handle company cash and merchant facilities to take payments from your clients. We can organise both for you and pay you (or an organisation of your choice) up to £55 cash back.
We have always provided free support and advice to all of our clients via telephone, email, and our website chat portal. We work with clients before, during, and after the set-up of their limited liability partnership.
You can easily manage your limited liability partnership online using our internet portal. It's easy to make changes to your company details when needed and our service saves you additional costs and fees in the future.
There is no legal requirement to have an LLP agreement in place, particularly if profits are divided equally between members. However, many partnerships prefer to have one and we can provide you with a draft agreement that you can amend to suit the structure you have in mind.
The members also enjoy some degree of protection from the liabilities of the LLP, so long as they do not act fraudulently or trade wrongfully. This level of liability is limited to the amount they have invested; they cannot lose more than this.
As the name suggests, an LLP is a partnership. Therefore it needs at least two partners. This raises issues of trust; if one partner falls out with the other and leaves then the LLP is dissolved unless another partner can be introduced. This is easily overcome with sleeping partners or corporate partners but it could still be considered as a potential drawback, therefore ensuring a comprehensive partnership agreement is in place is vital.
Even though the LLP has its own separate legal identity, dealings with third parties, for example banks, may still require the members to provide their own personal guarantees, much in the same manner as these guarantees apply to directors of limited companies.
The legal requirements to prepare and publish annual accounts add to the administrative burden. Additionally, certain profit distributions to members in high grossing LLPs will need to be disclosed on the public record, removing a certain element of privacy and confidentiality.
These legal requirements also extend to the members who must, like limited company officers, behave and act within the confines of the law. Failure can result in prosecution and future disqualification from being a member or director in another business.