An LLP exists as a legal entity separate from its members.
An LLP is fully liable for its own debts.
The liability of a member of an LLP is limited to the amount of capital they contributed.
A member of an LLP does not have a contract of employment.
The members of an LLP would normally have an agreement between themselves which sets out their respective rights, rewards and responsibilities.
An LLP is treated as a partnership for tax purposes with members taxed on their share of the taxable profit.
A member of an LLP is self-employed so there is no liability to Class 1 Employer’s national insurance.
An LLP is often used as a cost-effective means of rewarding a business’s key individuals.
If you consider we may be able to assist either with the operation of your LLP or in your decision as to whether an LLP would be appropriate for you please contact us.
Richard Jeffreys, Senior Audit Manager