The important information about LLP incorporation

While there are instances in which one may seek business formation services as limited company incorporation and company limited by guarantee incorporation, there is another legal business entity with limited liability that has emerged fairly recently - a Limited Liability Partnership. Companies House now has nearly 40,000 registered LLPs, and they differ somewhat from the original general or limited partnerships in their lack of directors, shareholders or share capital. 

When seeking business support services like those offered by London Registrars, entrepreneurs are increasingly favouring LLPs, on account of their combination of the benefits of limited liability and some of a traditional partnership's flexibility - they are even taxed as partnerships. The LLP is a vehicle that nicely combines protection and flexibility, with the differences between a traditional partnership and an LLP including that while the former is made up of a minimum of two partners, the latter consists of members, with at least two of these needing to be 'designated members'.

There are extra responsibilities taken on by a designated member in an LLP as opposed to an ordinary member, one being 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 that is a partnership, where the partners hold property and enter into contracts in their own names on the partnership's behalf.

In addition, while a partnership's partners have unlimited personal liability for the partnership's debts, for the members of an LLP, there is no personal liability for debts beyond their own contributions. Companies House filing requirements - like the Accounts and an Annual Return - also have to be complied with by an LLP, whereas a partnership's affairs have greater privacy, the accounts not able to be subjected to public inspection.

Befitting of its reputation as a provider of the most complete business formation services, London Registrars ensures a high degree of efficiency in its own LLP registrations service, generally completing the necessary work 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.

London Registrars' LLP incorporation work also encompasses the preparation of the incorporation document and statement of compliance, in line with Companies Act 2006 standards, as well as the submission of the documents to Companies House and payment of the registration fee. Although London Registrars cannot provide tax advice in relation to LLPs, it can nonetheless advise on the legalities of LLP formation and email the client the Certificate of Incorporation.

Even the LLP/Partnership Agreement can be prepared by London Registrars, either as a standard or bespoke document.

Editor’s Note: London Registrars (http://www.london-registrars.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.