LLPS

Question 1

What is a LLP?

Answer 1

A limited liability partnership is an incorporated business. It is a separate legal entity (between a company and a partnership formed under the LLPA)

Question 2

Advantages of an LLP?

Answer 2

• More flexible management than a company
• Provisions that apply between the partners
• Can grant floating charges over their assets
• Tax transparency - pay income on their share of the profits and capita l gains tax

Question 3

Disadvantages of an LLP?

Answer 3

• Ongoing administrative and filing requirements
• Must register to Companies using LLIN01
• Not as well recognised internationally