Limited Liability Partnership Registration (LLP)
The liability of the LLP is limited. The personal assets of the partners will not be used for unpaid debts. If the company is facing a financial crisis, full assets of the LLP will be used to pay back their loans.
Benefits of Limited Liability Partnership
Protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.
The operation of the partnership and distribution of profits is determined by written agreement between the members. This may allow for greater flexibility in the management of the business.
The LLP is deemed to be a legal person. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable if necessary.
LLP’s can appoint two companies as members of the LLP. In an LTD company at least one director must be a real person.