Limited Liability Partnership

A Limited Liability Partnership (LLP) refers to a partnership when the partners have limited liability, that is, they are not in any way responsible for the debts of the business.

Limited Liability Partnerships are an option to a partnership where each partner has a define responsibility for the business.

LLP are a halfway between partnerships and a limited company. You receive the benefit of limited liability, unlike a partnership in which each partner is individually liable for the debts of the partnership, so you are able to rest easier at night. This is a partnership without any share capital formed. You, or individuals of your choice own the LLP.

Partnerships and LLPs are very much similar except for the fact that LLPs have limited liability, and thus secure the business owner’s personal assets except personal guarantees has already been signed. At Guardian Accounting Ltd we are able to advise whether a LLP is the perfect format for you and can complete all the required returns and accounts for a fixed priced monthly fee.

Within an LLP, some partners have restricted liability, which makes it clearly distinctive from a limited company where each partner has mutual liability. LLPs likewise have more complex levels of tax liability. We’d be glad to explain the huge benefits on having an LLP.

Nevertheless, any similarity to a company ends when it comes to issues of tax. The profits of a company are subject to Corporation Tax, while the profits of an LLP are taxable on the people who can pay Revenue Tax on their share of the profits. Our services include planning first year LLP accounts, profit and revenue acceptance and planning of your annual report and financial statements.

A tax return is filed for the partnership and for every partner with more beneficial personal revenue and capital obtain tax costs being applied.

Just like a company, a LLP needs to be registered with Companies House and file records annually. LLP accounts look very much like those of a limited company, but again with some variations that take into consideration the terms of the Partnership agreement.

Guardian Accounting Ltd can enable you to register your Limited Liability Partnership (LLP) effectively, efficiently at low cost.