The advantages of establishing an LLP in London: when it comes to running your own business, it can be something of a balancing act between spending time doing your daily tasks and tending to LLP administration - ultimately, it's important for a business to be as profitable as it possibly can be in order to succeed. As the head of an LLP, there are a huge amount of important decisions to make, and one of these is precisely how your business is structured. After all, such choices can and do affect the amount paid out in taxes, as well as any benefits your limited liability partnership may be eligible, so it's important to give it some thought.
A British limited liability partnership, or an LLP registered in Great Britain, is one of the most commonly used business registration structures in the UK. There are a number of advantages to establish an LLP in London - most notably that an LLP essentially provides some corporation-type benefits to a business partnership, whilst providing the owners or partners with limited liability - meaning that each individual has a certain degree of protection from the actions of other partners. Corporations function whereby stock holders are required to elect a board of directors to control a company. LLP's allow for the owning partners to run the business instead.
Essentially, this means that the LLP's investors are not responsible for the entire value of the debts of the business, and are instead solely responsible for their own investment in the partnership. In addition to this, partners are protected against any impropriety on behalf of any other partners. To use one example: in a small plumbing business, if one partner were to be grossly negligent to the point of causing damage or injury to a property or person in the course of undertaking work, it would be their responsibility to deal with any repercussions, in both a legal and financial sense, as opposed to affecting every single investor in the limited company.
Although the concept of the LLP initially surfaced in the world of American commerce during the 1980s, it's a means of registering a business which has fast caught on in the United Kingdom, where it remains an attractive concept for small businesses such as trades operating on a self-employed or partnership basis.