Limited Liability Partnership (LLP)
What is Limited Liability Partnership?
Last Update 7 months ago
Limited Liability Partnership, also known as LLP, is a structure that some or all partners have limited liabilities. This is most popular among professions like accountants, solicitors, architects, etc.
Initially, you need to have 2 Partners to set up an LLP, but there is no limit on the maximum number of partners. You need to register your LLP company with Companies House and have a Registered Office Address that will be available to view publicly online along with the details of all the partners.
LLP's are not liable for corporation tax, however, each partner is personally responsible for paying National Insurance and Income Tax on their individual profits to HMRC through Self - Assessment Tax Returns.
It is not a legal requirement but it is highly recommended to draw an LLP Agreement between all your members when incorporating an LLP.
The agreement should state how the company will be run, who will be the sole decision-maker, the rights and responsibilities of each partner, how the profits or losses are shared, and how partners can join or leave the company.