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It has been possible to incorporate an LLP under the Limited Liability Partnership Act 2000 with effect from 6 April 2001.
An LLP is a 'body corporate' in law with a separate legal personality from that of its members. This means that, unlike a conventional partnership, an LLP can enter into contracts and hold property in its own right.
An LLP will be incorporated and registered at Companies House. We can assist you with the formalities. An LLP will have to comply with many of the requirements which apply to Limited Companies in respect of audit issues and the filing of Accounts.
Restrictions on names an LLP can use are similar to those for Limited Companies, and an LLP cannot have the same name as an existing Limited Company.
The 'partners' in an LLP are called members and should not be referred to as partners.
LLPs will normally be governed by a formal agreement between the members. In the absence of a formal agreement, default provisions apply under the Act.
For tax purposes, an LLP is treated as a partnership of its members. There are special provisions for traditional Partnerships which convert to LLPs. The Stamp Duty exemption will only apply where the transfer of the existing business occurs with one year of incorporation of the LLP.
There are additional tax regulations for a LLP which is classified as an Investment LLP.
It is not a Company and does not count as an Associated Company affecting the limit for the small company rate of Corporation Tax.
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