Limited liability partnerships
When setting up in business, it can be confusing to work out whether an LLP, a limited company, or another structure, is right for you. Our business services solicitors can provide legal advice on the differences and discuss with you the legal implications. Contact us today to find out more about the LLP business structure and to discuss your commercial ambitions with our team.
What is an LLP?
Like a company, a limited liability partnership (LLP) is its own entity and trades in its own LLP name. Unlike an ordinary partnership, it offers some limited protection to its members, so that a partner’s liability is limited to the amount they have invested.
How do you set up an LLP?
Under the Limited Liability Partnerships Act 2000, an LLP can be formed by two or more persons who have the intention of setting up a lawful business in order to make a profit. As part of the formation process, you will need to choose:
- the LLP name;
- a registered address for the LLP; and
- the general and limited partners – there must be at least one of each.
An LLP has to be registered with Companies House in the same way as a limited company and must file annual confirmation statements and accounts with Companies House.
What is a limited liability partnership agreement?
An LLP agreement is a contract that sets out the relationship between the members of the LLP, the responsibilities and rights of each member and how the LLP will be managed. Our commercial solicitors will generally advise clients to enter into an LLP agreement. This contract covers what should happen in certain important situations, such as making decisions and dismissing members. Without a properly drafted agreement in place, confusion and disputes can arise, which can be harmful to the business. Our solicitors can help you negotiate mutually agreeable terms and create a legally binding document.
Contact our Commercial Solicitors Sheffield for LLP Advice
If you are considering forming a limited liability partnership, our commercial solicitors can provide the advice you need. We have supported many businesses through the formation process, giving professional and practical legal guidance to ensure the business is legally compliant and gets off to a successful start. As part of our comprehensive service, our commercial team can help you create a binding LLP agreement to ensure your interests and those of your partners are protected as your business progresses.
We are based in Sheffield and serve clients in Rotherham, Chesterfield, Barnsley, Dronfield and further afield. If you require advice when forming an LLP, call us on 0845 225 2635 to find out how we can help or fill in our online contact form and we will get back to you shortly.