Within a Limited Liability Partnership (LLP), the partners are not personally liable for the debts of the business- this alternative corporate entity combines the flexible structure of a partnership, with the benefits for its partners of limited liability.
The key characteristic of an LLP is that it is treated as a separate legal entity from its members, giving them the benefit of limited liability- therefore protecting their personal assets. The Members only have liability up to the amount they have contributed to the LLP – a significant advantage over a traditional partnership, where partners liability is unlimited.
However, with regards to taxation, the LLP is treated as a partnership and Members are taxed as partners, the tax charge being dependant on their share of the income or gains made from the LLP.
Similar to the requirements that companies must adhere to, LLPs are required to file financial information at Companies House. This includes annual returns and accounts, notification of changes to memberships and the registered office and details relating to a mortgage or charge, if created. As in all cases, failure to comply on time will result in penalties from Companies House, so it is imperative that as an LLP you meet your statutory requirements.
Here at Smith Cooper, we have a team of dedicated advisors who specialise in LLP’s and are therefore expertly equipped to advise LLP’s. As part of our comprehensive service, we complete the essential accounts and returns for your business, as well as filing responsibilities with Companies House such as submission of Confirmation Statements.
The legislation governing LLP’s is constantly evolving, which is where we can help. Our team is made up of highly consummate professionals, who have access to preeminent knowledge and are able to draw upon a wealth of knowledge to advise you in a timely, supportive approach. Please get in touch today to see how we can help.