LLP incorporations and agreements

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	LLP incorporations/agreements What are Limited Liability Partnerships? Limited Liability Partnerships have now been around since April 2001. They offer the organisation, and the individuals who own it, the benefits of being a corporate body including the protection of limited liability, with the flexibility of operating as a partnership and being taxed as such. Who should consider a Limited Liability Partnership? LLPs have been used by for professional firms in particularly law firms and accountancy firms. However they are becoming increasing popular with chartered surveyors, architects and dentists will become eligible for this structure once the Dentist Act (Amendment) 2005 comes into force. For partnerships that wish to convert to LLP status, stamp duty relief on the transfer of property may be available. What are the characteristics of an LLP? LLPs are created by registration at Companies House and on completion of the registration the Registrar issues a Certificate. With this Certificate it will be easy for an LLP to establish its good standing when required - for instance, in transactions involving the acquisition of overseas assets. LLP name The name of an LLP has to end in "LLP" or "LIMITED LIABILITY PARTNERSHIP". LLPs are subject to the same rules as companies in relation to identical names, "too like" names and the use of sensitive or prohibited words in their names. If you wish to check on the availability of a name see below. Check your company name Once incorporated the LLP will have the following characteristics: LLPs must file an annual return and annual statutory accounts similar to those filed by limited companies. Small company exemptions apply, including audit exemption rules. There are ongoing compliance and filing requirements at Companies House which our Corporate Administration team can help you with should you need. LLP’s do not have directors but appoint "designated" members. These members have responsibility for the organisations statutory requirements. There must be at least two designated members. LLPs can create floating charges as security for borrowings, a major advantage over ordinary partnerships. Members do not have to contribute a minimum amount of capital, even in the event of a winding up. As with companies, members are not permitted to siphon off funds in the event of insolvency and accordingly parts of the Insolvency Act 1986 will apply. LLP agreement Although there is no statutory requirement to have an LLP agreement it is advisable to put an agreement in place. This is because the “default” regime, which applies when there is no formal agreement, is unlikely to meet all the requirements that the parties want from the LLP. For more information click here.

			Contacts
	Click contact name to email Bristol Joe Cressy 0117 918 1336 Karen Bowley 0117 918 1393 Chris Hadler 0117 918 1310 London Ruairi Laughlin-McCann 020 7400 3310

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			High Court decision
	High Court decision has wide implications for the way wills are proved and paves way for more law firms to convert to LLPs. more

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privacy policy | terms and conditions | disclaimer | statutory information