An Introduction to Limited Liability Partnerships (LLPs)
- Price: £3.60
- Published: June 2016
- Type: Business Information Factsheet
- Format: PDF
A limited liability partnership (LLP) is a common legal structure for two or more sole traders to set up in business together, while limiting their personal liability. An LLP is similar to a private limited company in that it has a separate legal identity to that of the partners (known as members of the LLP).
In many ways, LLPs operate in exactly the same way as ordinary partnerships, but there are a few important differences. For example, while ordinary partnerships do not have to be registered with Companies House, it is a statutory requirement for LLPs to be registered.
LLPs are typically set up by professional services providers such as solicitors and accountants and often operate with a considerable number of members.
This factsheet explains what an LLP is and sets out the advantages and disadvantages of the LLP format, as well as outlining the steps to take when setting one up.
For an overview of the different types of legal status a business owner can choose, see BIF 32, Choosing the Right Business Legal Structure.