Benefits of LLP incorporation for the family business start-ups: many people think that a limited liability partnership (LLP) is only suitable for big businesses, but that's not the case. Small firms, including family businesses, can also profit from this type of company structure.
For small businesses, there are many good reasons to form a limited company as an LLP, among them that individuals are protected from accidents or negligence that may be caused by partners in the enterprise. The business can also obtain lower tax rates due, for example, to principals being self-employed, while money can be saved on the National Insurance Contributions of employers. Plus there is greater flexibility in officers being able to leave and join.
Additionally, just as with a limited company (LTD), an LLP is a separate legal entity that can enter into contracts in its own name, and there is unlimited capacity in trading products and or services. Increasing numbers of people are today turning to LLPs as a way to do business. This flexible structure allows the partners to share the costs of running an enterprise, along with the risks and responsibilities.
Partners can also pool their assets, which can be used to obtain loans that may be needed for big upcoming projects requiring substantial capital such as purchasing a site to build houses on, if the firms are in the construction industry.
Given these benefits, it makes sense that small traders consider forming an LLP - for example, home-based businesses such as bakers, plumbers or electricians. If there are a number of such small firms in an area, they might like to join together to form an inclusive LLP, thereby offering a range of services to the community under the legal umbrella of one firm.
At Coddan, we have the expertise to guide you along the way to establishing your own LLP. Our seasoned consultants are available to answer your questions and take you right though the LLP incorporation procedure. Our fees are extremely competitive and start from only £32.00, and afterwards you get all the necessary documentation along with an optional business account with NatWest, Lloyds, RBS or Barclays.