{"id":5280,"date":"2017-03-22T11:26:06","date_gmt":"2017-03-22T11:26:06","guid":{"rendered":"https:\/\/www.qualityformations.co.uk\/blog\/?p=5280"},"modified":"2024-11-08T12:33:16","modified_gmt":"2024-11-08T12:33:16","slug":"limited-liability-partnership","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/limited-liability-partnership\/","title":{"rendered":"What is a limited liability partnership?"},"content":{"rendered":"
\n Last updated: 8 Nov 2024<\/strong>\n <\/div>\n \n

A limited liability partnership is one of the available legal structures that you can use to set up and run a business in the UK. Often referred to as an \u2018LLP,\u2019 a limited liability partnership is simply a business partnership that is owned by two or more members (partners) who have limited liability for the LLP\u2019s debts.<\/p>\n

Just like a limited company, an LLP is a separate legal entity and has unlimited legal capacity. This means that an LLP can own property in its own name, take out loans and credit, employ staff, be held responsible for its own debts, and become a shareholder or member of another business.<\/p>\n Our LLP Package - including draft Partnership Agreement<\/span><\/a>\n \n

As a result, LLPs must be set up (registered\/incorporated) at Companies House. While this type of business structure is still relatively unknown to many people, it is actually a very common and popular choice in the UK because of the huge benefits it offers to certain professions over the ordinary partnership structure (most significantly, limited liability protection).<\/p>\n

Types of businesses that would set up an LLP<\/h3>\n

Limited liability partnerships were introduced in the UK in 2001. Incorporated under the Limited Liability Partnerships Act 2000<\/a>, they are suitable for any two or more persons who want to set up a for-profit joint venture business. The LLP structure has become hugely popular with professional services firms and other types of businesses that would otherwise set up an ordinary partnership.<\/p>\n

The types of professionals who favour the LLP structure include:<\/p>\n