An LLP is a partnership that is registered as a company at Companies House and has limited liability.
Must prepare accounts in accordance with:
– FRS102 (section 1A if applicable).
– Statement of Recommended Practice: Accounting by Limited Liability Partnerships
Subject to income tax and Class 2 and 4 National Insurance. The regime for deduction of expenses is the same as for corporate bodies. Must complete the SA800, and individual partners complete the SA100.
- Easy and cheap to set up – partnership agreement and register with Companies House
- Limited Liability
- A partnership agreement can state social goals, and some worker co-operatives are set up as LLPs
- Tax regime is easy to negotiate and reasonably benign
- No audit or any kind of external verification of accounts is ever required
- No limited liability
- No social investment routes available
- Accounts preparation
- Parternship Tax return SA800
- Payroll (if employing people)
- VAT advice, if necessary
- Book-keeping, if required