What is a Limited by Liability Partnership?
An LLP is a type of business structure often favoured in professions such as law and accountancy.
An LLP is operated much the same as a regular partnership with the added security of limited liability. With the objective of profit and differing tax regulations to the traditional limited by shares company, Limited by Liability Partnerships are often favoured in professions such as accountancy and law.
The structure of an LLP is slightly more complex than a Limited by Shares Company but our intuitive software ensures that the formation process is straightforward with your LLP being formed in typically just 3 working hours.
The Key Points
Objective is to make profit
Owned by partners
Minimum of two designated members
Partners have limited liability
Members pay tax on personal income
Requirement to file accounts
Predominantly, the key taxation difference between a Limited by Shares Company and a Limited Liability partnership is the absence of corporation tax. Effectively, the members of an LLP will complete a yearly self-assessment and pay tax on their personal income foregoing any tax that would have been required if they had been operating a Limited by Shares Company.
The filing requirements for an LLP are very similar to those of an LTD company. Accounts must be filed at Companies House and HMRC each year. In order to remain active, an LLP must have at least 2 designated members at all times. The designated members are the overall decision makers and are responsible for the day to day running of the company and for submitting the accounts on time.
Please contact us to discuss if this business structure best matches your needs.
Want to start an LLP today?
Online LLP registration is so much quicker and cheaper than using Companies House. Why waste time trying to figure out how to complete the paper forms when we have provided the online solution?
To get started simply check if your preferred name is available now and begin forming your LLP.