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About Limited Liability Partnerships - 'LLPs'

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  • An LLP is a partnership which benefits from 'limited liability' for its members (i.e. owners). As a partner, you would benefit from the flexibility of a partnership and the company would be taxed as a partnership also.
  • These types of companies are generally formed by groups of professionals, such as Solicitors, Accountants and Doctors.
  • There is no limit as to the amount of members of an LLP.

Who Can Own And Run A Limited Liability Partnership?

  • An LLP must have at least 2 members who can be anyone of any nationality.
  • There is no limit as to the amount of Directors and Shareholders there are to such a Company.

Why Would This Type Of Company Be Formed?

  • The partners in an LLP aren't personally liable for debts of the business which it cannot pay, their liability is limited as to the amount of money they have invested into the enterprise.
  • Partners can agree internally as to how the share in profits is divided amongst the members. This provides such members of the business greater flexibility.
  • An LLP incurs no liability in respect of Corporation Tax, instead the members (partners) pay income tax on their salaries and withdrawals from the business profits. These members therefore are required to complete individual self-assessments each year and file the same with HMRC.
  • A corporate body can act as a member of an LLP, which again allows the other members greater flexibility in negotiating the terms in which that corporate body partner acts within the business, and how it may be entitled to make withdrawals of profits from the enterprise.
  • There is no requirement for LLP members to live within the UK.

Key Advantages of Limited By Shares Companies

  • Flexibility
    Greater flexibility amongst members of the business to negotiate terms of structure, profit sharing and responsibilities amongst themselves.
  • Ability To Raise Capital
    The members can invite other partners into their partnership if they wish at a 'buy in price'.
  • Company Name Protection
    Once a Limited Company's name is registered with Companies House, no other Company in the UK can be legally permitted to use the same name.
  • Tax Efficiency
    No corporation tax or capital gains tax liability.
  • Nationality and Location of Members
    LLP members are not required to live in the UK or be british.

Taxation Advantages

  • Please see our taxation page where we explain the unique advantages of forming your business as a Limited Liability Partnership.

You Should Note

  • If you are wishing to register your new LLP to your home address, it is this address which will appear as the correspondence address on the public records for your business. If you don't wish to use your home address in order to protect your privacy, then you can benefit from our Registered Office Address Service.
  • Select the links below in our Address Services details to find out more.
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