Where as a business may seek business formation services such as limited company incorporation and company limited by guarantee incorporation, many may be advised to use another legal business entity giving limited liability but with a partnership regime – namely a Limited Liability Partnership. Companies House now have over 52,000 registered LLPs (May 2014), and they differ somewhat from the original limited liability companies because of their lack of directors, shareholders or share capital and a different tax regime.

Entrepreneurs are increasingly favouring LLPs; attracted by the benefits of limited liability vehicle with the flexibility of a traditional partnership. LLPs are even taxed as partnerships.

The LLP must appoint at least two designated members who have to take on extra responsibilities such as the filing of documents with Companies House as and when needed. LLPs benefit from having their own identity, being able to hold property in their own name and enter contracts. This compares to the un-incorporated body such as a partnership, where the partners hold property and enter into contracts in their own names on the partnership’s behalf.

In addition, while partners in a traditional partnership have unlimited personal liability for the partnership’s debts, the members of an LLP, there is no personal liability for debts beyond their own capital contributions. Companies House filing requirements – such as filing the Accounts and an Annual Return – also have to be done by an LLP in the same way as limited liability companies which contrasts with a partnership whose affairs have greater privacy, for example the accounts are not subject to public inspection.

London Registrars is a provider of comprehensive business formation services, who through attention to detail and a culture of quality of service ensures efficient LLP registrations service, generally incorporating LLPs in no more than 48 hours. Elements of the service include checking on the chosen name’s availability and adherence with Companies House rules, as well as the legally required ID checks of the prospective members to ensure compliance with anti money laundering regulations.

While it’s not a legal requirement, London Registrars will prepare your LLP/Partnership Agreement, either as a standard or bespoke document.