Limited liability partnerships or LLPs as they are sometimes called, have features which exist both within a UK company and those present in an unincorporated business.
LLPs benefit from having restricted liability just as limited companies do. This effectively protects the partner’s own assets and wealth by distinguishing them the property of the business.
Limited liability partnerships do not have a share capital or shareholders as companies generally do. The partners within this type of business entity have profit shares just as those in traditional partnerships do.
Partnerships are likely to exist within LLPs to formalise the arrangements as agreed by the parties involved.
Registering a Limited Liability Partnership
Limited liability partnerships are incorporated by Companies House by completing form LLP2, which is available from Companies House.
As such, as with other type of registrations, the partnership is subject to similar rules regarding names and other incorporation requirements.
Whereas traditional unincorporated businesses do not have to publicly disclose their accounts, LLPs have no such privacy available to them
In recent years, since the 2000 act allowing this type of entity to be created, several accountancy and solicitors practices have opted to register as an LLP in order to reduce their business risk and personal exposure to events conducted in the course of their business.
This trend is set to continue as the attraction of limited liability overcomes a diminishing belief that certain business types should adopt the traditional structure which was prevalent within that particular industry.
