LIMITED LIABILITY PARTNERSHIPS - Frequently Asked Questions
Q IS AN LLP A BUSINESS OR COMPANY?
The general answer is both, technically it's a company, but has tax advantages of a business and limited liability.
Q WHO CAN BECOME AN LLP?
Any profit seeking commercial business and professional firms, Accountants, Solicitors, Architects etc.
Q WHAT IF THE BUSINESS RUNS UP DEBTS?
This is the big advantage in that the debts are the companies and you are also protected against debts a 'partner' might run up.
Q 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.
Q 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)
Q HOW MANY PEOPLE ARE NEEDED TO FORM AN LLP?
A minimum of 2 people.
Q HOW IS AN LLP TAXED?
The same as a normal partnership.
Q 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.
Q IS STAMP DUTY CHARGED ON TRANSFERRING ASSETS?
Stamp duty is not charged if the assets are transferred into a new LLP.
Q I RUN MY BUSINESS FROM HOME CAN I STILL HAVE AN LLP?
Yes there is no legal restriction at all.