What is an LLP?
Definition of an LLP
An LLP is a Limited Liability Partnership. An LLP is a way to structure a business legally in the UK, as a hybrid between a partnership and a limited company.
Owners of a LLP are called 'members' rather than 'partners'.
An LLP is taxed like a partnership, with tax returns being filed for the LLP and for each member, and each member being taxed on his or her share of the profits.
But if a LLP is sued, then, like the directors of a limited company, the members' personal assets aren't at risk unless they've given personal guarantees or been guilty of wrongdoing.
A LLP must also file accounts and an Annual Return each year with Companies House. These are then available for public viewing.