In brief
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You have to register with Companies House, the
method is similar to registering a company.
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The LLP will be a separate legal entity and while
the LLP itself will be liable for the full extent
of its assets the liability of the members will
be limited. Under certain circumstances, however,
claims for economic loss could be made against
individual members who have been negligent. Any
such claim would be a civil action outside the
contract as the party would have contracted with
the LLP.
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The business is controlled by the 'designated
members' (who have a similar responsibility to
a directors / secretary of a Ltd Company) and
the 'members'.
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Capital is provided by the members, LLP's are
similar to 'Partnerships' or 'Sole Traders' in
this respect.
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Incomes derived by the members will be closer
to that of a 'Partnership' than to the dividends
paid by companies.
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An LLP will be taxed as a 'Partnership'. The
members will provide working capital and share
any profits.
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The LLP is a legal entity in its own right.
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Details:
An LLP is an alternative corporate business vehicle
(introduced April 6th 2001) that gives the benefits
of limited liability but allows its members the flexibility
of organising their internal structure as a traditional
partnership.
Any new or existing firm of two or more persons will
be able to incorporate as an LLP in England, Scotland
or Wales. It is not possible to convert a company to
an LLP or vice versa. LLP's are not available to Charities,
there must be a view to profit.
LLP's are similar to companies in the respect that they
will be required to provide financial information equivalent
to that of companies, including the filing of annual
accounts. Also they must notify any changes to:
The LLP membership; members' names & addresses;
the Registered office.
For further information visit Companies House Web site
or view our FAQ's
page
(See below.)
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