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.

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FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.