LLP FAQs

IS AN LLP A BUSINESS OR A COMPANY? 

The general answer is both, technically it’s a company, but has tax advantages of a business and limited liability.

WHO CAN BECOME AN LLP? 

Any profit seeking commercial business and professional firms. This type of formation is most commonly used by professionals looking to go into business together; for example, law and accountancy firms.

WHAT IF THE BUSINESS RUNS UP DEBTS? 

Registering as an LLP means you are protected against debts the business incurs and any debts a ‘partner’ may also incur.

DOES THE LLP HAVE TO FILE ACCOUNTS LIKE A LIMITED COMPANY? 

As technically it is a company it must file company accounts although these are usually filed in a brief, modified form for small companies.

WHEN WOULD I HAVE TO FILE ACCOUNTS? 

Your accounting period would be 12 months from the end of the month in which your company is formed, you must submit those accounts within 10 months after the end of your financial year. (The actual accounting period can be changed in the first year using form LL AA01).

HOW MANY PEOPLE ARE NEEDED TO FORM AN LLP? 

A minimum of 2 people.

HOW IS AN LLP TAXED? 

The same as a normal partnership.

CAN I TRANSFER FROM A PARTNERSHIP TO AN LLP? 

Yes, it’s straightforward and we can assist you, but basically the act is designed to enable you to become LLP without tax implications.

IS STAMP DUTY CHARGED ON TRANSFERRING ASSETS? 

Stamp duty is not charged if the assets are transferred into a new LLP.

I RUN MY BUSINESS FROM HOME CAN I STILL HAVE AN LLP? 

Yes, there is no legal restriction at all.

Which Type of Limited Company is Right for you?

Limited Companies 

Limited liability can protect the owner of a company from personal loss or even bankruptcy, which a sole trader could not avoid. Take the stress out of making it official and form your company with the National Business Register here.

PLC (Public Limited Companies) 

Owning a PLC offers prestige and perceived status. PLC companies do not have to be listed on the Stock Exchange or Alternative Investment Market and many PLC shareholders/directors choose to retain control over their company at all times. Form your PLC with the National Business Regitser here.

Guarantee Companies 

Guarantee companies are usually run for the benefit of members of a club or association to raise funds for the benefit of others. The “guarantors” give a personal amount they will pay in the event the company fails and owes debts. If they wish, members can give an unlimited guarantee and be responsible for all debts. Can also be used for flat management. Form your guarantee company with the National Business Register here.

LLP (Limited Liability Partnerships) Companies 

An option for companies with two or more owners, the partners can limit their personal liability and avoid putting their personal assets at risk. Mostly used by accounting and law firms. Form your LLP with National Business Regitser here.

CIC (Community Interest Company) 

This is a limited company with extra features to mark it out as a Social Enterprise. CIC’s are easy to set up, with all the flexibility and certainty of the company form, but with some special features to ensure they are working for the benefit of the community rather than private individuals. Form your CIC with National Business Register here.