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What is a Limited Liability Partnership?

LLPs are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners.

The rights and responsibilities of limited liability partnership members to one another and the LLP will be set out in the LLP agreement or, if one does not exist or is silent, in legislation.

What are your responsibilities as a Limited Liability Partnership?

  • Maintaining accounting records
  • Preparing and signing the accounts and filing them with Companies House
  • Maintaining statutory registers, including a Register of Persons with Significant Control
  • Preparing and submitting a confirmation statement to Companies House
  • Informing Companies House of other changes in a timely fashion – for example, changes in members or their details, the name of the LLP, its registered office address or accounting reference date
  • Registering for VAT with HMRC (if required)
  • Other registrations with HMRC, reporting of relevant changes and filing of returns.

Benefits of trading as a Limited Liability Partnership

Separate Legal Entity

Limited liability partnership advantages are not limited. Along similar lines to a company, an LLP is a separate legal person. This means that the members are not liable for the LLP’s debts. Thus, all contracts are between the LLP and its clients or third parties. If the LLP is insolvent, the personal responsibility of a member is limited to the amount of their negotiated allocation of capital. Plus the value of any personal guarantee. Where negligence involves, members may be liable to the full extent of their assets. If they have assumed personal responsibility for the advice or work.

Unlimited Capacity

The separate legal entity status also means that there is no need. For example, to transfer legal title to the property on a change of membership. Advantages of LLPs also have an unlimited capacity which can enter into contracts and hold property in the same way as an individual.

Tax Advantages

Members of the LLP are usually taxed as if they were partners and not employees or directors. They are not liable to pay PAYE or Class 1 NICs. Businesses often find it easier to recruit new members to an LLP than to an ordinary partnership.

Prices starting from £495

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Dedicated Accountant

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Dedicated Accountant

We provide you with a dedicated accountant, always on hand to support you with an unlimited amount of queries.

Companies House Filing

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Companies House Filing

We will ensure your organisations annual return is completed and submitted on time. T&W Accounts will prepare you a full set of statutory annual accounts which includes a balance sheet and profit and loss.

Partners Tax Returns

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Partners Tax Returns

We will prepare and partner tax returns and also detail any liability before the statutory deadline of 31 January.

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