What is the difference between members and designated members in LLP?

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Afternoon

Thinking about forming an LLP, and as part of that I am tallying up who I want to get involved as members. My question, then, is as follows: what’s the difference between normal members and designated members?

Cheers

Edward Carr

Answers

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Hi Edward,

Designated members have all the same rights and duties as normal LLP members but they also assume responsibility for the partnership’s statutory filing, reporting and administrative obligations. These responsibilities include:

  • Registering the partnership for Self-Assessment.
  • Registering the partnership for VAT and PAYE, if applicable.
  • Ensuring all partners have registered individually for Self-Assessment and file their tax returns each year.
  • Keeping accounting and business records.
  • Making statutory registers available for inspection.
  • Preparing annual returns for Companies House.
  • Preparing annual accounts for members and Companies House.
  • Preparing a Self-Assessment tax return for the LLP as a whole.
  • Maintaining the registered office.
  • Notifying Companies House of changes within the business - i.e. change of registered office, moving the location of statutory registers to an alternative inspection location, change of LLP partners’ details.
  • Preparing VAT returns and filing PAYE reports.
  • Paying VAT and Employers’ National Insurance.
  • Overseeing the winding up of the partnership.

All limited liability partnerships must have at least two designated members at all times. If no two members are designated, Companies House will assume all members are designated.

a year ago
 

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