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What are the advantages of trading as a limited liability partnership? Among the types of business structures available in the UK, limited liability partnerships (LLPs) have become popular in recent years, and for good reason.
One of the main reasons entrepreneurs opt for LLPs is due to the capital requirements, as there is no minimum at all. The members of the LLP - the partners who have come together for the purpose of forming the enterprise - are free to decide among themselves how much they wish the capital to be, depending on what each can reasonably afford to contribute.
Another advantage of LLPs is reduced taxation, because the members can trade in the limited liability partnership' name and at the corporate tax reduced rate. This rate is not subjected to the entire LLP as an entity but to each of the members themselves and their respective operations. The tax is therefore applied to the members individually rather than the group entity that is the LLP.
With an LLP, each member or partner has limited personal responsibility - this indeed is the name of this business type - and so in the case that there is a lot of debt, the personal assets held by the members would be safe and not at risk of being seized and sold off to repay the debts.
It is due to these clear advantages in running a business that many people choose LLPs as their desired business structure. At Coddan, we can register an LLP for you with no fuss and as swiftly as possible – in under a day in some cases.
Our LLP registration packages start from as low as just £32.00 with no extra charges, and you can get an optional business account with Barclays, Loyds, RBS or NatWest. We will file all the necessary paperwork with Companies House and when the LLP is registered and formed, you will receive the official documentation confirming the new enterprise.