Limited Liability Partnerships
A Limited Liability Partnership("LLP") is a form of legal entity, having a separate corporate identity, with limited liability for members. It has the organisational flexibility of a partnership and is taxed as such. Two or more persons may incorporate an LLP; “persons” includes individuals, companies, or firms. When introduced in 2001, it was thought that the use of LLPs would be restricted to professional practices. However they have been increasingly used as vehicles for fund management businesses and property holding companies, amongst others.
Like any company, an LLP must have a registered office. An LLP may have an unlimited number of members but must have at least two "designated" members, who have extra "management" responsibilities. For example, they are responsible for notifying changes to Companies House, signing annual accounts, and preparing an annual return.
To regulate the relationship between members, it is usual for a partnership agreement to be drawn up on incorporation. If no agreement is entered into, the provisions of the Limited Liability Partnerships Regulations apply. These are brief, assume equality between all members, and are generally inadequate and inappropriate for most LLPs. An agreement drafted to meet the requirements of the LLP is therefore recommended in each case.
We will form an LLP for you and draft a tailored LLP agreement to meet your needs.
For further information email us at info@davidvenus.com or phone us on 01372 465330.
