Limited Liability Partnership

Limited Liability Partnership

Limited Liability Partnership (LLP) is a new type of business formation or partnership in which sole partners have a limited liability unlike traditional partnership. An LLP is created by the Limited Liability Partnerships Act 2000. In limited liability partnership, all the liabilities fall on the partnership, not on the individual partners. Sole partners of an LLP are not responsible for the debts of the entire business. It is the best option to establish and operate a business independently.

Establishing a Limited Liability Partnership

If you are going to establish a limited liability partnership, here are some key points to consider for the registration of LLP with Companies House and HMRC.

  • Must have a minimum of two members who will be responsible to ensure all legal obligations.
  • Must provide a registered company name and office address that will be used to send posts.
  • Provide Standard Industrial Codes (SIC) to explain the working of your LLP.
  • Information about members that are generally PSCs (People with Significant Control).
  • Must report change if you have made any.

Limited Liability Partnership Agreement

Limited Liability Partnership agreement will define how LLP will function under certain rules. Many default rules will do not allow the exclusion of a partner or will allow sharing profit equally between all the members. An LLP generally require an agreement that should contain the following:

  • Joining and leaving of members
  • Profits and capital sharing
  • Limitations on prior members

Hayes Accountants for Limited Liability Partnership

With many years of experience and expertise, Hayes Accountants give guidance on Limited Liability Partnership and prepare a draft for LLP’s agreement. We make sure to understand your commercial essential behind the LLP and deliver an agreement by tailoring your needs with our practical approach. Our dedicated team is always ready to offer expert services for limited liability partnerships by taking all of your headaches of legislation and agreement.

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