Limited Liability Partnership Formation

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Limited Liability Partnerships

The United Kingdom introduced Limited Liability Partnerships (LLPs) in 2001. LLPs are governed by the The Limited Liability Partnerships Act 2000. Unlike LLP schemes adopted elsewhere, in the United Kingdom LLPs are specifically legislated as a Corporate body rather than a Partnership.

A Limited Liability Partnership shares many of the features of a normal partnership – but it also offers reduced personal responsibility for business debts.  But, unlike members of ordinary partnerships, the LLP itself is responsible for any debts that it runs up, not the individual partners (Companies House, 2009).

Registration of a LLP can carry a number of benefits. A LLP effectively creates a new corporate body, which is a distinctly different business vehicle to the owners of the business.

Legal Responsibilities

Incorporation of a LLP carries some legal responsibilities. The details of Incorporation must be submitted to Companies House – the UK body responsible for the registry of company information. These details must be annually maintained. Audited financial accounts must be also be filed annually.

Companies Act

Limited Liability Partnerships must also adhere to provisions of the Companies Act.