{"id":7273,"date":"2020-02-22T11:14:41","date_gmt":"2020-02-22T11:14:41","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=7273"},"modified":"2025-03-04T12:43:29","modified_gmt":"2025-03-04T12:43:29","slug":"difference-ordinary-designated-llp-members","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-ordinary-designated-llp-members\/","title":{"rendered":"Ordinary and designated LLP members &#8211; what&#8217;s the difference?"},"content":{"rendered":"            <div class='post-lastupdated'>\n                <strong>Last updated: 4 Mar 2025<\/strong>\n            <\/div>\n        \n<p>LLP members are partners who jointly own and run a limited liability partnership (LLP). There are two types of members: ordinary and designated. You need two or more members to register an LLP at Companies House. At least two of those members must be \u2018designated\u2019 to perform extra duties on behalf of the partnership.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>In this post, we explain the rights and duties of LLP members, including the difference between ordinary and designated members. We also discuss the procedures for assigning or changing designated member status and the importance of clarifying members\u2019 rights in a formal LLP agreement.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n            <div class=\"key-takeaways-shortcode\" role=\"alert\">\n                <h3>\n                    <span>Key Takeaways<\/span>\n                <\/h3>\n                <div class=\"key-takeaways-shortcode__content\">\n                    <\/p>\n<ul>\n<li>LLP members are individuals or corporate entities that jointly own and run a limited liability partnership (LLP) for profit-making purposes.<\/li>\n<li>An LLP must have at least two members at all times, and at least two of those members must be &#8216;designated&#8217;.<\/li>\n<li>Ordinary LLP members are those without designated status. Designated members have additional administrative and management duties to perform on behalf of the LLP and all members.<\/li>\n<\/ul>\n<p>                <\/div>\n            <\/div>\n        \n<h2>What is an ordinary LLP member?<\/h3>\n<p>An LLP member is any person (individual or corporate) who enters into an agreement with other members to form a <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/limited-liability-partnership\/\" data-wpel-link=\"internal\">limited liability partnership<\/a> or become a member of an existing LLP after incorporation.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>An ordinary LLP member is any member who isn\u2019t a designated LLP member. As agents of the partnership, they must show a duty of care in relation to the transactions they enter into on behalf of the LLP. This extends to:<\/p>\n<ul>\n<li>Carrying out the LLP\u2019s instructions<\/li>\n<li>Exercising appropriate care and skill<\/li>\n<li>Behaving honestly and declining inducements or personal profits in respect of the LLP\u2019s business<\/li>\n<li>Not allowing any conflicts of interest<\/li>\n<\/ul>\n<p>Members jointly own and run a limited liability partnership, sharing in the LLP\u2019s capital and profits or losses. They are also liable to contribute to the partnership\u2019s assets upon its winding up or insolvency.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h2>What is an LLP designated member?<\/h3>\n<p>An LLP designated member is simply an LLP member who is responsible for performing additional duties in relation to a partnership&#8217;s management and legal administration.<\/p>\n<p>Their role is to ensure that the LLP and all of its members comply with the statutory requirements of the <a href=\"http:\/\/www.legislation.gov.uk\/ukpga\/2000\/12\/contents\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">Limited Liability Partnership Act 2000<\/a>, the Limited Liability Partnership Regulations 2001, and any other legislation and regulations that may be relevant to the business.<\/p>\n            <div class=\"revolut_shortcode\">\n                <a href=\"https:\/\/revolutbusiness.ngih.net\/daV2kQ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_mobile.png\"\n                        alt=\"Revolut Business & Affiliates.\"\n                        class=\"revolut_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/revolut_desktop.png\"\n                        alt=\"Revolut Business & Affiliates.\"\n                        class=\"revolut_shortcode-desktop\">\n                <\/a>\n            <\/div>\n            \n<p>Acting on behalf of the partnership and other members, designated members have responsibilities similar to those of <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/the-role-and-responsibilities-of-a-company-director\/\" data-wpel-link=\"internal\">company directors<\/a> and secretaries. As such, they are legally accountable if they fail to fulfil their statutory obligations.<\/p>\n<h2>Duties of LLP designated members<\/h3>\n<p>In addition to the duties applying to ordinary LLP members, designated LLP members are responsible for extra duties in relation to the partnership. These include:<\/p>\n<ul>\n<li>Maintaining <a href=\"https:\/\/www.gov.uk\/government\/publications\/limited-liability-partnership-registers\/limited-liability-partnership-registers\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">statutory LLP registers<\/a>, including the LLP register of members and the LLP register of people with significant control (PSC register)<\/li>\n<li>Maintaining the LLP\u2019s <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/services\/registered-office-address\/\" data-wpel-link=\"internal\">registered office address<\/a>, signage, and official stationery <span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Appointing an accountant and auditor<\/li>\n<li>Preparing, signing, and filing annual accounts with Companies House<\/li>\n<li>Preparing and <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/services\/confirmation-statement\/\" data-wpel-link=\"internal\">filing an annual confirmation statement<\/a><\/li>\n<li>Submitting an annual Partnership Tax Return with HMRC<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Notifying Companies House of any changes to the LLP\u2019s registered details, including details of members<\/li>\n<li>Acting on behalf of the partnership upon its winding up or dissolution<\/li>\n<\/ul>\n<p>Designated members are legally accountable if they fail to carry out their statutory responsibilities.<\/p>\n<h4>Additional management duties<span class=\"Apple-converted-space\">\u00a0<\/span><\/h4>\n<p>Under a partnership agreement, additional management powers may be granted to designated members \u2013 similar to those of company directors. These may include:<\/p>\n<ul>\n<li>Overseeing daily operations<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Dealing with suppliers and key stakeholders<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Ensuring all members adhere to the terms of the partnership agreement<\/li>\n<li>Registering the partnership for Self Assessment<\/li>\n<li><a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/when-should-i-register-for-vat\/\" data-wpel-link=\"internal\">Registering for VAT<\/a> and PAYE (where applicable)<\/li>\n<li>Maintaining accounting records, financial documentation, and other LLP paperwork<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>Submitting VAT returns and paying VAT bills<\/li>\n<li>Ensuring all PAYE tasks are completed<\/li>\n<li>Signing contracts and other documents on behalf of the LLP<\/li>\n<li>Ensuring the business complies with data protection rules<\/li>\n<li>Arranging and maintaining relevant insurance policies (e.g. Employers\u2019 Liability, Public Liability, Professional Indemnity)<\/li>\n<\/ul>\n<p>However, it is common in many LLPs for all members to participate in managing the business, usually based on their expertise and contributions. Members will decide between themselves which duties each person will perform, outlining them in the partnership agreement.<\/p>\n<h2>Who can be an LLP designated member?<\/h3>\n<p>On the agreement of other members, any individual can be an ordinary member or a designated member of an LLP unless they are:<\/p>\n<ul>\n<li>Under the age of 16<\/li>\n<li>Disqualified from acting as an LLP member or a company director<\/li>\n<li>An undischarged bankrupt<\/li>\n<\/ul>\n<p>In some cases, the court may grant special dispensation to allow disqualified persons or undischarged bankrupts to act as LLP members or take part in the management of an LLP.<\/p>\n            <div class=\"wise_shortcode\">\n                <a href=\"https:\/\/wise.prf.hn\/l\/62GaO3k\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/wise_325x340.png\"\n                        alt=\"Wise International Business Banking\"\n                        class=\"wise_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/wise_980x150.png\"\n                        alt=\"Wise International Business Banking\"\n                        class=\"wise_shortcode-desktop\">\n                <\/a>\n            <\/div>\n        \n<p>Corporate bodies, such as limited companies and other LLPs, can also be appointed as ordinary members or designated members of an LLP. In such instances, they are known as \u2018corporate members\u2019.<\/p>\n<h2>How to appoint an LLP designated member<\/h3>\n<p>By law, every limited liability partnership must formally appoint at least two designated members. If an LLP has only two members at any time, both members will be designated.<\/p>\n<p>Similarly, if an LLP fails to identify at least two designated members (or the number falls below two at any point), Companies House will automatically consider all members to be designated.<\/p>\n<p>Limited liability partnerships can appoint designated members during and after incorporation. They can also change the status of any member from designated to ordinary, or vice versa, at any time.<\/p>\n<h4>Appointing a designated member during incorporation<\/h4>\n<p>To assign designated status to particular members during the LLP incorporation process, you must indicate each relevant member\u2019s consent on the LLP incorporation form (Companies House form LL IN01).<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>You do this by checking the box in the member appointment section that states, \u2018Please tick this box if the person is consenting to act as a designated member.\u2019<\/p>\n<p>                                                    <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/self-assessment-requirements-for-limited-liability-partnerships\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">Self Assessment requirements for limited liability partnerships (LLPs)<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/running-llp-filing-reporting-requirements\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">Running an LLP: filing and reporting requirements\u00a0<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/distributing-profits-limited-liability-partnership\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">Distributing profits in a limited liability partnership (LLP)<\/span><\/a>\n                    <\/p>\n<p>However, if all members are to be appointed as designated members, you must select \u2018Yes\u2019 when asked, \u2018Will all members from time to time be designated members?\u2019<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>If you form an LLP online with Quality Company Formations, you will select designated members by checking the relevant boxes on our simple online incorporation form. You will have the option to select particular members or all members as designated.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h4>Appointing a designated member after incorporation<\/h4>\n<p>To assign designated status when appointing a new LLP member, you must indicate on form LL AP01 (or LL AP02 for a corporate member) that the person is being appointed as a designated member.<\/p>\n<p>The form must be filed with Companies House online or by post within 14 days of the new member\u2019s appointment.<\/p>\n<h2>Changing the designated status of an existing LLP member<\/h3>\n<p>When an existing LLP member\u2019s status changes from ordinary to designated or vice versa, you must file form LL CH01 (or form LL CH02 for a corporate member) with Companies House within 14 days of the change.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Simply check the relevant box on the online or paper form to indicate whether the person consents to act as either a \u2018designated member\u2019 or \u2018member\u2019 of the LLP.<\/p>\n            <div class=\"hubspot_shortcode\">\n                <a href=\"https:\/\/hubspot.sjv.io\/OrKdGZ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_mobile.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_desktop.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-desktop\">\n                <\/a>\n            <\/div>\n        \n<p>Alternatively, if an existing LLP wishes to change its designated status from all members to only specified members, or vice versa, you should complete Companies House form LL DE01 instead. Where applicable, you will need to send form LL CH01 or LL CH02 at the same time to identify the specific members who consent to act as designated members.<\/p>\n<h2>Defining members\u2019 rights and responsibilities in an LLP agreement<\/h3>\n<p>The default rights, duties, and responsibilities of LLP members are set out in the LLP Act 2000 and the LLP Regulations 2001. However, it is advisable to prepare a <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/llp-agreement\/\" data-wpel-link=\"internal\">written LLP agreement<\/a> before setting up a limited liability partnership.<\/p>\n<p>This important document, which becomes legally binding once agreed upon and signed by all members, clarifies how the partnership must operate. It usually specifies the following:<\/p>\n<ul>\n<li>Mutual rights and duties of all members<\/li>\n<li>Rights, duties, and responsibilities of designated members<\/li>\n<li>Defined roles and specified rights of individual members (to clarify their specific duties, areas of expertise, and seniority)<\/li>\n<li>Each member\u2019s investment contribution<\/li>\n<li>Distribution of profits (or losses) and capital<\/li>\n<li>Decision-making rules and procedures<\/li>\n<li>Membership requirements<\/li>\n<li>Procedures for the appointment, resignation, and retirement of members<\/li>\n<li>Dispute resolution procedures<span class=\"Apple-converted-space\">\u00a0<\/span><\/li>\n<li>What should happen in the event of any member\u2019s incapacitation or death<\/li>\n<\/ul>\n<p>Whilst optional, it\u2019s good practice to put a carefully drafted partnership agreement in place, especially when there are variations between the rights and duties of different members.<span class=\"Apple-converted-space\">\u00a0<\/span>You can create your own LLP agreement, but it is often best to consult a solicitor for specialist help and tailored advice.<\/p>\n<p>It\u2019s important to understand that an LLP agreement extends beyond any document labelled \u2018LLP Agreement\u2019. It also includes any written, verbal, or implied agreements that govern the relationship between members of the LLP and the relationship between the LLP and its members.<\/p>\n<h4>Default partnership agreement rules<span class=\"Apple-converted-space\">\u00a0<\/span><\/h4>\n<p>In the absence of any written or verbal partnership agreement, the <a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2001\/1090\/part\/VI\/made\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">default provisions under Regulations 7 and 8 of the Limited Liability Partnership Regulations 2001<\/a> will govern how an LLP operates.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Under these rules, all members will be treated equally, which may not be appropriate for the partnership or reflect the contributions of individual members.<\/p>\n<p>The default provisions include the following:<\/p>\n<ul>\n<li>All LLP members are entitled to share equally in the profits and capital of the limited liability partnership<\/li>\n<li>Every member may participate in the management of the partnership<\/li>\n<li>No person may become a member without the consent of all existing members<\/li>\n<li>A majority of members may make decisions on ordinary matters, but the consent of all members is required to make changes in the nature of the business<\/li>\n<li>A majority of members cannot expel a member unless the power to do so has been granted by express agreement between all members<\/li>\n<\/ul>\n<p>In practice, these provisions rarely apply since they are usually overridden by what is set out in a formal LLP agreement. However, they may be suitable for some small LLPs in which all members are equal.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h2>Register a limited liability partnership online<\/h3>\n<p>Combining the tax transparency and flexibility of a general partnership with limited liability protection for members, an LLP is one of the most popular business structures for industry professionals who traditionally operate as partnerships \u2013 for example, solicitors, accountants, and other professional services firms.<\/p>\n<p>At Quality Company Formations, our <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/formation-packages\/#LLP\" data-wpel-link=\"internal\">Limited Liability Partnership Package<\/a> is available for just \u00a369.99 plus VAT, providing online incorporation in under 24 hours. You&#8217;ll also receive digital and printed LLP incorporation documents and a free draft LLP Agreement, ensuring you have everything you need to set up an LLP today.<\/p>\n<h2>Thanks for reading<span class=\"Apple-converted-space\">\u00a0<\/span><\/h3>\n<p>We hope you\u2019ve found this post helpful. If you have any questions, please comment below. You can also contact our London-based team if you need help setting up an LLP.<\/p>\n<p>Explore the <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/\" data-wpel-link=\"internal\">Quality Company Formations Blog<\/a> for more LLP and limited company guidance.<\/p>\n            <div class=\"complete_package__shortcode\">\n                <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/fully-inclusive-package\/\" data-wpel-link=\"internal\">\n                    <img decoding=\"async\"\n                        src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_sidebar.png?v=4\"\n                        alt=\"Fully Inclusive Package\"\n                        class=\"complete_package__mobile\"\n                    \/>\n                    <img decoding=\"async\"\n                        src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_banner.png?v=4\"\n                        alt=\"Fully Inclusive Package\"\n                        class=\"complete_package__desktop\"\n                    \/>\n                <\/a>\n            <\/div>\n        \n"},"excerpt":{"rendered":"<p>LLP members are partners who jointly own and run a limited liability partnership (LLP). There are two types of members: ordinary and designated. You need two or more members to register an LLP at Companies House. At least two of those members must be \u2018designated\u2019 to perform extra duties on behalf of the partnership.\u00a0 In&hellip;<\/p>\n","protected":false},"author":10,"featured_media":7272,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[1236],"tags":[],"class_list":["post-7273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-limited-liability-partnership","category-1236","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ordinary and designated LLP members - what&#039;s the difference?<\/title>\n<meta name=\"description\" content=\"We explain the difference between ordinary and designated LLP members, including their duties and how to assign designated member status.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-ordinary-designated-llp-members\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ordinary and designated LLP members - what&#039;s the difference?\" \/>\n<meta property=\"og:description\" content=\"We explain the difference between ordinary and designated LLP members, including their duties and how to assign designated member status.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-ordinary-designated-llp-members\/\" \/>\n<meta property=\"og:site_name\" content=\"Quality Formations Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-22T11:14:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-04T12:43:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qualityformationsblog.co.uk\/wp-content\/uploads\/2020\/02\/QCF-LLP-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Campion\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nicholas Campion\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Ordinary and designated LLP members - 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