Limited Liability Partnerships
What is an LLP?
LLPs were introduced to combine the protection of a standard limited company with the organisational flexibility of a partnership. This company also has the advantages of being taxed as a partnership. Other than this they are very similar to a private limited company.
What is needed to form a LLP?
What is the difference between a member and a designated member?
Designated members are the same as members but have the following extra responsibilities:
Partnership Agreement
Each LLP should also have a partnership agreement. This will state basic things such as profit sharing and responsibilities of the members. This agreement does not need to be filed at companies house and can be changed, subject to agreement of the members, at any time.
What is in the pack?
LLPs were introduced to combine the protection of a standard limited company with the organisational flexibility of a partnership. This company also has the advantages of being taxed as a partnership. Other than this they are very similar to a private limited company.
What is needed to form a LLP?
- A suitable name for the company
- You will need at least two members because as the name suggests you need a partnership. Members are either designated members or ordinary members, you need two designated members at any one time.
- A registered office
What is the difference between a member and a designated member?
Designated members are the same as members but have the following extra responsibilities:
- appointing an auditor (if one is needed);
- signing the accounts on behalf of the members;
- delivering the accounts to Companies House;
- notifying Companies House of any membership changes or change to the registered office address or name of the LLP;
- preparing, signing and delivering the annual return to Companies House; and acting on behalf of the LLP if it is wound up and dissolved.
- They are also accountable in law for failing to carry out these legal responsibilities.
Partnership Agreement
Each LLP should also have a partnership agreement. This will state basic things such as profit sharing and responsibilities of the members. This agreement does not need to be filed at companies house and can be changed, subject to agreement of the members, at any time.
What is in the pack?
- Certificate of Incorporation
- Change of Accountancy Reference date form
- E-filing Code (if required)