Limited liability partnerships are hybrid tools with features adopted from the corporation and general partnership. UK LLPs share certain traits in common with the LLC, which too was created by combining certain features of the partnership and corporation. The LLP differs in that it is essentially a ‘partnership’, with limited liability, as opposed to a ‘company’.
UK Limited Liability Partnerships were added to our suite of companies not merely as alternatives to IBCs and LLCs but due to their features which work well for the diverse demands of our clientele.
Flowing from this structure, limited liability partnerships offer unique benefits:
Ideal Alternative to Sole Proprietorships
If you are a sole proprietor or a partner in a general partnership, the UK LLP provides an ideal substitute which limits liability.
Registering UK LLPs require at least two (2) members (corporate or natural persons), a registered agent and office, and a statement of each member’s contribution towards capital.
At least two (2) members must be appointed as ‘designate members’.
In the absence of designated members, the law automatically deems all members as ‘designated’.
What do they do? — Designated members are under administrative obligations akin to those of a secretary or director of a corporation.
What are some of these responsibilities? — Filing accounts, returns and other documents with the Registrar, representing the LLP during any winding-up, updating information re changes, such as changes in membership or name.
By meeting certain conditions, UK LLPs can function as a fully fledged tax sheltered tools:
Non-residency: All members must be non-residents and non-nationals/citizens of the UK
Management: Administration, control, signing of contracts, meetings and decision-making must occur outside the UK.
Place of Business: All trade and income generating activity must be non-UK based
Yearly Returns: Accounts and financial statements must be filed to show UK and non-UK business with Company’s House.
If all non-residency/control/management conditions are satisfied, taxes are not applicable. If you do not have a designated, to ensure that filings are done in time and professionally, please go to our Pricelist for Bookkeeping/Accounting Services for UK LLP.
Please call us for more details on UK limited liability partnerships and how they can be structured as tax free entities.