Limited liability partnership

Many professional businesses, such as solicitors, accountants, consultants and doctors, that have traditionally operated in partnerships form a Limited Liability Partnership (LLP) to reduce their exposure to personal financial loss.

Unlike companies limited by shares and companies limited by guarantee, LLPs do not have shareholders or guarantors. Instead, this type of company has members of which there must be at least two although there is no maximum limit.

The profits from the LLP are shared amongst its members with each member, who can be resident and work from anywhere in the world, being responsible for paying any income tax or National Contribution payments on these drawings and also being responsible for their own debts within the LLP.

How to form a Limited Liability Partnership

121 Company Formation offers five different types of LLP formation packages all include the following basic elements:

  •   A draft LLP agreement (while not a legal requirement, this is a useful document should you wish to divide shares, profits or capital at a later date)
  •   A full set of company incorporation documents
  •   Company register
All you have to do is choose the package that best suits your needs and the time you have available to devote to setting up the LLP.

LLP Bronze Package £35.95 – the documents are sent electronically
LLP Silver Package £55.99 – the documents are sent in both electronic and printed paper format
LLP Gold Package £85.99 – the documents are sent in both electronic and printed paper format and the
confirmation statement is filed free of charge for the first year of trading
LLP Platinum Package £135.99 – the documents are sent in both electronic and printed paper format, the confirmation statement is filed free of charge for the first year of trading and the company is registered for VAT and corporation tax with HMRC
LLP Diamond Package £399.99 – the documents are sent in both electronic and printed paper format, the confirmation statement is filed free of charge for the first year of trading, the company is registered for VAT and corporation tax with HMRC and the first year’s accounts and corporation tax return are prepared and submitted (subject to certain criteria)

To select and purchase the LLP package that is most suitable for you, simply, navigate to the limited partnership packages using the link below.
https://www.121companyformation.co.uk/llp/#package-llp

The following information will then be required for completion for the online registrations application form:
 
  •   The name of the LLP
  •   The LLP’s registered office address
  •   The full details of the minimum of two members who will be appointed
  •   Confirmation who will be designated members
  •   The SIC code of the LLP, i.e. the nature of its business

FREQUENTLY ASKED QUESTIONS

Many professional businesses, such as solicitors, accountants, consultants and doctors, have traditionally operated in partnerships form a Limited Liability Partnership to reduce their exposure to personal financial loss.
A member can be a resident of any nationality or a corporate entity and, in the case of an individual they must neither be an undischarged bankrupt nor a disqualified director.
Whilst they both have the same duties and rights, a designated member has the added responsibility for ensuring that both the LLP and its members meet the statutory requirements required of them and they would also manage these requirements should the partnership be dissolved at any time
This company structure is only for businesses that intend to trade as profit making and therefore are required to pay tax whereas non-profit organisations need a different structure since they will not generally use the same taxation process.
While not a legal requirement, this is a useful document to define each member’s share of the rights, responsibilities and profits of the business which may or may not be equal or may change over time. An LLP agreement is also useful should you wish to divide shares, profits or capital at a later date and it allows.
Yes, as for limited company directors, LLP members are required to register for self-assessment with HMRC and pay any tax due on the profits that are drawn from the LLP by each filing an annual tax return. However, unlike private limited companies, a Limited Liability Partnership does not corporation tax on any profits the partnership makes.

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