What business sectors are suitable for a limited liability partnership? A limited liability partnership can, when used well, offer a number of advantages over traditional limited companies. So if you want to know how you can use a limited liability partnership, or what an LLP can do for you, contact Coddan today. The limited liabilities partnership Act came into force in 2001 and was aimed at worldwide partnerships like legal practices, in situations where the alliance served them well but one country could not be fully aware of the actions of a partner in another state and jurisdiction. Now it has been adopted by investment funds, property investors, not-for-profit companies wanting to exploit commercial ties and silent partners looking to limit their exposure.
You can use an LLP can buy property, obtain a credit rating, obtain finance and all manner of things a traditional entity can do. However, if it is wound up then the member's liability is limited to their initial capital investment. Foreign clients can also use an LLP to carry out all their business before withdrawing profits to a tax friendly regime and avoid personal income tax.