Structure guide
Limited liability partnership
An LLP is a separate legal body with two or more members. It combines Companies House responsibilities with partnership-style taxation in many ordinary trading cases.
What it means
The LLP can contract and own assets in its own name. Members normally have limited liability, while being taxed on their shares of LLP profits where the LLP carries on a business with a view to profit.
Regular responsibilities
- Register with Companies House.
- Maintain accounting and statutory records.
- File accounts and confirmation statements.
- Complete partnership and member tax reporting.
- Maintain at least two designated members.
The LLP agreement
The agreement should address capital, profit sharing, management, decisions, duties, admission, retirement, disputes and what happens when circumstances change.
When it may deserve comparison
An LLP can be relevant where several active owners want organisational flexibility and limited liability without using an ordinary share-company model.
Specialist points
Member status, salaried-member rules, corporate members, property, investment activities and loss relief can be complex. An LLP should not be selected merely because its name contains “limited liability”.