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