A Limited Liability Partnership (LLP) is a distinct corporate entity with features of both a partnership and company. Formed under the Limited Liability Partnership Act 2000, they provide each member with limited liability.
An LLP is regarded as a person at law, and can employ staff and enter into contracts in their own right in a way that partnerships cannot. Each member of a limited liability partnership is still taxed as an individual akin to a partner in a partnership.
If you are looking at converting to an LLP, Ralli Partnership Law has handled this procedure for many clients, so you can be certain that we will work to ensure everything is right for your needs.
Setting up a limited liability partnership key areas to consider
- Will all partners in the partnership become members of the LLP?
- Who will be the Designated Members of this Limited Liability Partnership?
- What classes of member (full, salaried, fixed share) will there be, if any?
- What capital will be put into the LLP?
- Will all partnership property transfer to the LLP?
- Are there assets being used to run the partnership, but not owned by the partnership, that will be transferred into the LLP?
- What sort of management structure will be in place?
- Are there any other key terms that need to go into the new LLP agreement?
- Those setting up a Limited Liability Partnership should also note that property transferring from a partnership to an LLP, subject to certain exceptions is exempt from Stamp Duty Land Tax (SDLT)