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Limited Liability Partnerships
By Heather Platts BA(Hons) | Updated August 26, 2007
An LLP is similar to a standard partnership - in that a number of individuals can run the business, share the risks, costs and profits - however, unlike the standard parnership, LLPs liability is limited to the amount invested - which means there is some protection offered the individual should the business run into trouble.
It is beneficial for would-be partnerships to talk through their business operation with a qualified accountant to agree and draw up a partnership. Partnerships are managed by the individuals within the group - who take responsibility for raising funds, running the business and sharing the profits.
Whilst there is no restriction on the number of individuals that can join the partnership - there must be at least 2 who are nominated as designated members who have extra legal responsibilities placed on them,
Further, an LLP must register with Companies House - for these reasons, we advice that you talk to us before finally deciding on this structure, to make sure all bases are covered and a written agreement is drawn up between members.
The LLP and each individual member must submit a self assessment tax return; Accounts have to be filed with Companies House together with an annual assessment which is due on the anniversary of the partnerships incorporation.
Members are classified as self employed and will be due to pay tax and NIC.
Topics: Setting-up a New Business |
