The LLP is a hybrid, across between a partnership and a limited company. They cannot yet be registered on-line. Formation of an LLP (with a standard members' agreement) is £150 plus £19.50 VAT, total £169.50 (including £20 registration fee). We also have an excellent value for money partnership agreement service.
An LLP makes an ideal format for a professional partnership or a small business where there are at least two partners. It is simple to operate and very flexible. We strongly advise, however, that an LLP should only be set up on advise from an accountant because of the potential tax consequences.
Like a limited company, an LLP is a separate legal entity which gives full limited liability to its members. It is must be at Companies House. There must be at least two members, but there is no upper limit. Like a company, it must register its accounts annually and an annual return. It is much simpler to operate than a company. There are no legal rules for running an LLP. Like a partnership, these are matters for the members to decide for themselves and to include in an LLP agreement. An LLP does not have shares or directors, just members who own the LLP between them and run it as they think fit. There is no statutory requirement to register (or even to have) a written partnership agreement, but such an agreement is essential in practice.
The name of an LLP is subject to the same rules as for a limited company. Click here for our page on company names and click here to do a name check.
The LLP is treated for tax purposes as an ordinary partnership: i.e. each member is liable to income tax for his or her share of the profits, and to Capital Gains Tax in respect of any gains made on the disposal of assets belonging to the LLP.
An LLP cannot be set up electronically and registration time is about one week from when the forms are submitted to Companies House. We can offer an expert service for the formation of an LLP, and can e-mail the forms to you for completion. As part of our standard service, we supply our own standard LLP agreement, but we also provide an expert drafting service for such agreements to be tailor-made.
Standard LLP formation costs are £150 plus £19.50 VAT, total £169.50 (including £20 registration fee).