Back
We continue to provide our legal services through the COVID-19 pandemic. Please visit our COVID-19 Hub for legal insights, or contact us directly.
Get in Touch Menu

Benefits of becoming an LLP

27 June 2008

Limited liability partnerships have now been around for some seven years.

Many partnerships have converted, as we ourselves have just done, and new start-ups are increasingly opting for the flexibility of LLP status.

An LLP is something of a ‘hybrid’, combining aspects of a traditional partnership and a company. As a result, it can be seen as something of a win-win, offering advantages over both of these more traditional business vehicles.

LLP status offers all the benefits of limited liability. The position is very similar to that of holding shares in a company – the LLP member potentially risks his investment becoming worthless but does not risk losing his personal assets. Although there are some potential inroads into this concept (eg certain aspects of insolvency legislation in relation to LLPs) the position is far more palatable than that of unlimited personal liability within a traditional partnership.

One of the practical benefits is that, as a separate legal ‘person’, there is no need for business assets to be transferred when members retire or join the LLP. An LLP also has unlimited legal capacity so, unlike companies, there are no technical concerns about whether a particular legal transaction is within its powers.

LLP status also offers organisational flexibility, allowing management or profit structures to be created as you wish, with no need to distinguish between members and shareholders as required with a limited company.

For more information, download:

Overview of legal issues
LLP conversion checklist

As always, if you need commercial and pragmatic legal advice, we’re here to help so please get in touch.

Contact us

Contact
Paul Symes-Thompson MA (Cantab)
Partner
View profile
Paul Symes-Thompson
Related services
Share this article
Resources to help

Related articles

Willans advise top UK growing recruitment business on national & global expansion

Corporate

Willans’ corporate team has advised one of the UK’s leading recruitment businesses, Sanderson Solutions Group plc, in acquiring recruitment company Highams, along with three further trading divisions of Nakama Group…

Willans
Solicitors

Fixed price legal advice for SMEs & the Coronavirus Business Interruption Loan Scheme

Corporate

The Coronavirus Business Interruption Loan Scheme (CBILS) has thrown a much-needed lifeline to businesses experiencing cashflow difficulties as a result of the coronavirus outbreak. 17 December 2020 Today, Rishi Sunak…

Chris Wills LLB (Hons)
Partner

Your business post-Brexit: What has changed & what should you do now?

Corporate

On Christmas Eve, the nation was informed that the UK and EU had struck a Brexit deal. The transition period is now over, and a clearer picture of the future…

Helen Howes LLM
Solicitor
Contact us