What is Limited Liability Partnership? (1)

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LIMITED LIABILITY PARTNERSHIP (LLP)
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What is Limited Liability Partnership?
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 In an LLP, every partner isn't
accountable or to blame for another partner's
misconduct or negligence, therefore they are only
liable for the amount of money they invest, plus
any individual profit..
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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.
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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.
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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.
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Contact Us
Future Formations Ltd 4 Cochrane House Admirals
Way, Canary Wharf London E14 9UD 442077818033
www.futureformations.co.uk
support_at_futureformations.co.uk