An LLP is an alternative corporate business vehicle, giving the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership.
An LLP is different from a traditional partnership in that it is a legal entity separate from its members. In many ways it is a partnership in name only. It has 'members' rather than partners and must be formally incorporated to exist. Because an LLP is a legal entity it is subject to some parts of the Companies Act.
Two or more persons are able to incorporate as an LLP in England, Scotland or Wales. It is not possible to convert a company to an LLP or vice versa.
As a member of an LLP, you are self-employed and must register with the HMRC. Members of the LLP take remuneration in the form of drawings, which have no effect on the profits of the LLP declared for income tax purposes; in other words, drawings cannot be deducted from the profit figure to arrive at taxable profits.
If this approach is what you choose we will assist with registration with HMRC, VAT registration, record keeping and we can even assist with opening a bank account.
Our charge for this service (2 partners) is £190 + VAT per month, additional partners are charged at £95 + VAT per month.