Week 11 - Limited Liability Partnership Flashcards
What is a limited liability partnership governed by?
The limited liability partnerships act 2000
Who is most drawn to limited liability partnerships?
Accountants and solicitors
What is an LLP?
New business vehicle which is a hybrid between a company and a partnership
What can an LLP do?
All the things a normal/legal individual/company can do e.g enter into contracts, hold property in own name, sue or be sued
What is a benefit of an LLP compared to normal partnerships?
If someone leaves, the partnership does not automatically come to an end
What is a potential con of an LLP?
More red tape (rules) but still less than a private limited company
What are the persons involved in an LLP called?
Members as opposed to partners
When did the act come into force?
April 2001
What are the rules regarding liability in an LLP?
The LLP itself is liable up to the extent of its assets, but the liability of each of it’s members is limited (only lose what they invested, not everything)
