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A limited liability partnership combines features of limited company formation and partnerships.
A Limited Liability Partnership (LLP) is similar to a limited company registration in that it is a separate legal entity and the members take advantage of limited liability (liability on a partnership is unlimited).
The main difference is that where Limited Companies are required to abide by the terms and conditions set out in their Memorandum & Articles, a Limited Liability Partnership can be run in the same manner as a partnership. It is, however, advisable to enter into a legal agreement between the members to set guide lines as to how a situation should be dealt with in the future. We provide the recommended Limited Liability Partnership agreements within your company package at no additional charge.
A Limited Liability Partnership is treated as a partnership for the purpose of taxation.
As with a limited company, a Limited Liability Partnership must have a minimum of two members. The company is required to have at least two designated members registered at Companies House at all times, otherwise all members will be deemed to be designated members. There is no maximum number of designated members; therefore all members may be nominated if the company wishes. Companies House must be informed when the designated members change (this is done via the form LL AP01 which may be downloaded from our website, or from Companies House website).
The same regulations apply when choosing a name for a Limited Liability Partnership as with a Limited Liability company formation – it is not possible to register a company with the same name as another and applications with sensitive names are required to satisfy the registrar’s conditions. We do not offer ‘Off the Shelf” Limited Liability Partnerships therefore you are free to select any name you wish, subject to the above conditions.
As with a limited company formation, members may enjoy limited liability unless the director breaches company law.