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Tips How to Use an LLP in Business, Uses of an LLP in Business by UK Entrepreneurs

How to start a local business? Starting a small local business via an LLP

 
Starting a Local Business via an LLP

Starting a small local business via an LLP: some of the most common local partnerships that start off as separate self-employed endeavours are in the home maintenance industries. Let's say you are a professional plumber and one of your competitors or friends is a handy man, a third person is a professional painter, and all of you are running businesses as self-employed traders. Like the baker, the buffet-maker and the party planner, you can cooperate in order to offer much better service to your clients and widening the options available to them by operating as an LLP.

Every one of you will do the same business; however, you can offer your clients different type of services from a single basket. For your clients it offers a level of convenience because they don't have to source similar services from elsewhere, and for you there are a host of advantages.

What are the benefits of using an LLP for business? Some of the benefits of a limited liability partnership as a company structure have been touched upon earlier in this article, however there are others too. As an LLP you can offer a greater variety of services to your clients: -

  • Individuals are protected against accidents or negligence caused by partners within the business
  • Tax benefits mean that different investors with different tax profiles can achieve lower tax rates because members of an LLP are self-employed for tax purposes
  • Like a LTD company, an LLP is a separate legal entity which can enter contracts in its own name
  • Businesses save money on the employer's National Insurance Contributions
  • An LLP affords much more flexibility than a LTD company, as members are free to join and leave much more frequently than within other company structures
  • Unlimited capacity to trade objects

Working in a partnership is the preferred organisational structure for lots of people, for a whole variety of different reasons. However, the most commonly cited are that forming a partnership allows individuals to share costs, risks and responsibilities with one another because they become part of a commercial organisation. If you want to find more about uses of an LLP, click here: additional information about the uses of an LLP.

The flexibility of an LLP allows this sort of the company structure to respond with ease and speed to ever-changing customer demands, adding services to the business portfolio as and when it is deemed appropriate or necessary.

Customers are satisfied because their demands are met. Businesses are more able to respond to the requirements of those who access their services and have an increased opportunity to bid for contractual work. On top of this, by combining the buying power of several people, LLPs are often in a much better position to invest in property or equipment for their venture.

So, when you are considering your LLP business structure, ask yourself - are UK LLPs only for big businesses and special professions? Or could an LLP work for you and your business?

Coddan Ltd is an LLP incorporation specialist that helps enterprises of all sizes and specifications to decide on the best structure for their business needs. The team are happy to speak to you about your requirements today.