What is a Limited Liability Partnership?

Limited Liability Partnership
A Limited Liability Partnership (LLP) is a way of structuring a business that is similar to a normal partnership, except the partners have ‘limited liability’ for any loss or debts incurred by the business.

Professional private companies that would otherwise operate as traditional partnerships (such as accountants, architects or vets) often choose to become LLPs.

Businesses usually decide to incorporate as a Limited Liability Partnership because of the financial protection it offers to partners’ personal assets. If the business is sued or makes a loss, individual partners have only limited liability for any debts that the business can’t pay.

There must be at least two partners in a Limited Liability Partnership, and the LLP must be registered with Companies House. LLPs and individual partners submit annual tax returns, and partners must pay tax on their share of the profits (as in a normal partnership). The LLPs itself does not pay tax on its profits.

Like any UK Limited Company registered with Companies House, Limited Liability Partnerships have to submit annual accounts and Confirmation Statements. This information is then available for the public to view online.

Any questions on LLPs?

If you have a question regarding LLPs or registering as a LLP with Companies House, don’t hesitate to ask.