Are LLPs privately owned?

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My name is Daniel Hyde, and I am part of a collective forming an accounting firm in north London. We are obviously considering a limited liability partnership as our company structure of choice - it makes the most sense. But what I don’t know about LLPs is whether they are privately owned. Can they be public, or are they always private?

Answers

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Hi Daniel,

Limited liability partnerships are always privately owned by their members. There are no shares in an LLP; therefore, it is not possible to offer an equity stake to outside investors unless they become a member of the LLP. Only public limited companies (PLCs) can offer shares to the public.

If you do decide in the future that it would be more beneficial to operate as a publicly traded accountancy firm, you can register a PLC and transfer the business and its assets to the new structure. This is a complex process that will require specialist advice and assistance.

a year ago
 

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