Everything that we have said about Partnerships in the preceding post applies equally to Limited Liability Partnerships (LLPs). The LLP came into existence a few years ago following pressure from the legal and accountancy professions. The problem with standard partnerships was the unlimited liability of partners which was have a severe affect in recruiting new partners.
The LLP as its name implies brings a limitation of liability to the members. As a trade off for this protection, the rules and regulations applying to limited companies have largely been imposed on the new LLPs. One of these major impositions is the filing of the accounts of the LLP at Companies House.
In addition to filing the accounts at Companies House, the LLPs have also got to file other information about the LLP’s members, registered office etc.
More details of these requirements can be found on the Companies House website for LLPs.
These new LLPs have presented Qualified Accountants such as us with many opportunities that are extremely useful to existing businesses, be they sole traders, partnerships or limited companies.
These LLPs are not suitable for micro business due to their associated costs. But we have used these to create business structures that can take advantage of certain tax reliefs.
If you are already operating a business and would like to explore the potential of an LLP in your business structure, why not call us on 01252 375 466 for a FREE consultation to see what benefits may arise for your business!