What are Limited Liability Partnerships?
Limited Liability Partnerships ("LLPs") are a new form of UK business entity. They enjoy the commercial benefits that come from being a body corporate and their members benefit from the protection of limited liability. Yet LLPs can operate with all the organisational flexibility of a partnership, and are taxed as such.
LLPs were introduced in November 2004 following the Limited Liability Partnerships Act (Northern Ireland) 2002. Most of the relevant rules governing registration and operation of LLPs are in the Limited Liability Partnerships Regulations (Northern Ireland) 2004.

 

Who should consider a Limited Liability Partnership?
LLPs can be attractive vehicles for professional firms and other businesses, including start-ups and joint ventures. They are particularly valuable for businesses that would find corporation tax and other consequences of forming and operating a limited company onerous, but want to enjoy corporate status and limited liability for members.
For existing partnerships that convert to LLP status there will be stamp duty relief on the instrument transferring property from the current partnership to the newly incorporated LLP if relevant conditions are met.

 

Requirements
An LLP must have a registered address in Northern Ireland, and rather than one Director and one secretary as with a Limited company, LLP’s require two designated members. Designated members have the security of limited liability as do shareholders with a limited liability company.