Of course there are many other reasons to enter into an LLP. One popular reason is for dormant partners who wish to limit their exposure to the actions of the active partners. Someone who has no input into the day-to-day running of the business cannot know everything that is happening, but under other structures may be held liable to the same extent for malpractice or legal claims. With an LLP, the dormant partner protected and the only loss he can sustain is his capital investment.
Other reasons include taking on a partner who represents a major risk, but could potentially bring major rewards. LLPs are giving on of the best opportunities to start a family business, when all members of the family can join the LLP partnership with the equal rights and responsibilities, or whose business management duties or legal responsibilities can be shared in between designated or ordinary members.
If you are running a save planet business, like the Green Peace, and you need to find funds to protect your activists, you may establish a new side project for this matter as an LLP, and ask the public to donate to this specific project.
The registration of an LLP can be the good choice for the already existent businesses, as well. For an example, by running a successful business, you might receive a good opportunity to start a side project from you manager, or from the outside investor; and all you need to do is only invest money into the new project.
You can accept such chance by offering to set-up a limited liability partnership for such project, and technically, you will be responsible for your investment only. You line manager can be appointed as the designated member, you can appoint yourself as the designated member as well, if you want. On the other hand, you may create a dormant company in the UK, or create an offshore company and appoint it as the second designated member, it can be the good solution to minimise your own risks.
In other words, those days, when the limited liability partnerships were association with only professional bodies, such as accountants, solicitors, etc., were gone forever. In our days, many wide ranges of the regular businesses are choosing an LLP as the best structure to incorporate.
Legally, LLPs are regulated by a hybrid system of law that combines company and partnership law, which makes the creation of an LLP especially attractive, as if the partnership is forced to wind up for any reason then the liability of the members is limited to their capital investment.