U.K. Professional Clients
U.K. Private Customers
The main characteristics of a limited liability partnership in the United Kingdom are as follows: -
The main advantages of a limited liability partnership registration are as follows: -
Of all the legislation of the last few years, the creation of limited liability partnerships is one of the most interesting: -
Limited liability generally the essence of a limited liability partnership for practical purposes is as a vehicle to contain a partnership of any size where partners may be at risk from the careless or accidental negligence of a colleague. For example, partners in international accountancy firms would be protected from personal liability if a claim was successfully pursued by a major client. Partners in a construction business would be protected if a new building collapsed, causing high level claims against them.
Protection for a non-active lender a limited liability partnership may also be appropriate for a partnership where some partners are not actively involved. They might have once been called "sleeping" partners. This will suit both a company and an individual lender.
A limited liability partnership is a body corporate with a separate legal personality similar to a limited company. Unlike in a normal partnership, the members of an LLP enjoy limited liability as the name suggests - liability is limited to the amount of money they have invested in the business and to any personal guarantees, they have given to raise finance. Each member takes an equal share of the profits, unless the members' agreement specifies otherwise.