A Limited Liability Partnership (LLP) is a partnership under British law. It can best be compared to a German limited partnership without a general partner. The partners can exercise the management directly. However, as with a corporation, they do not have to forego comprehensive liability protection. Furthermore, this legal form can also be structured like a partnership for tax purposes.
This type of company is often encountered in the freelance sector, for example in law firms, auditors, tax consultants and architects (partnership, partnership company). Not only European lawyers who practise their profession in the country of origin of such a company in this legal form are able to use it. German lawyers abroad can also establish such a company and then pursue their profession in Germany in this structure.
An LLP construct is suitable for keeping the names of participating persons or directors secret (with offshore companies as registered partners).
Area of responsibility of the Designated Members
There are at least 2 'Designated Members' - they have more responsibility, for example for accounting. There is also the possibility to register unlimited normal members.
Design LLP contract
You should draw up an LLP contract that involves each member in the drafting of the LLP. This contract defines how the LLP will be managed, inclusive:
How profits are distributed between the members.
Who must agree to decisions
Responsibility of the members
How members can leave or join the LLP
A notary public can help you draft the contract or you can do it yourself.
Designated Members must:
Register the partnership for self-assessment with HMRC
Register the partnership for VAT if you expect that your annual turnover could be more than £82,000
Appoint an auditor if necessary
The bookkeeping kept
Execute, sign and send the Annual Account to Companies House
Send an Annual Return to Companies House
notify Companies House of any changes, whether in names, addresses or members
Act in case of closure for the LLp.
Responsibility of all members
Members must comply with their duties and legal responsibilities as described in the LLP Agreement.
Each member must take care of their own taxation (self-assessment HMRC or foreign tax office).
Fill in the data entry form for the Limited after the order
239.00 € *
- * excluding VAT