What is a Limited Liability Partnership?

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Hi, I am getting an idea of what type of company is going to be right for a new venture I’m working on them. One is what’s called a limited liability partnership. What exactly is it? By that I mean, what are its characteristics and who would choose it? Thank you!

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A limited liability partnership (LLP) is a business partnership that is set up and run by two or more people for the purpose of making a profit. An LLP differs from a traditional partnership because the partners (member) are protected by limited liability. This means that they are not responsible for paying the debts of the business - they are only liable for what they invest in the partnership.

Structurally, however, an LLP is just as flexible as a traditional partnership in terms of internal management. Furthermore, LLP members are treated as self-employed for tax purposes, so there is no Corporation Tax liability.

An LLP is a really popular setup for those who prefer the partnership structure because you can get the best of both worlds - the flexibility and tax structure of a traditional partnership with the financial protection of a limited company.

a year ago
 

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