Posted on 25th August 2021 at 15:07
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.
Tagged as: Company formations, FAQ's, Limited company, Limited liability partnership (LLP), NBR services
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