UK LLP - anyone currently using or have experience of LLP's?

Not much help Steve but was discussing this with someone yesterday - so does it work that the limited liability is shared between partners?

Or is it more along the accountants / solicitors route?

Yup liability is shared between partners, which can mean another business or individual. It seems a less informal structure than a ltd, but interested if anyone is using it.

You mention Joint Venture, Ltd Company and LLP. All three are potential structures to consider.

Joint Venture - normally, in my accounting world, implies two entities wanting to join forces to do something but not willing to form formal relationships and everything that goes with it with each other as is the case for ltd company and LLP.

Ltd Company - Tried and tested. Works

LLP - Introduced around the time that the big firms were in the press daily with legal actions concerning audit abundant and one of the key issues for professional firms tempted to go this route was limitation of liability. There are no particular advantages of using an LLP that I am aware of apart from limitation of liability but Ltd companies provide this anyway apart from in the case of negligence!

Thanks Barry

So your saying theres little point or advantage then to a LLP. We are looking at a joint venture of 2 Ltd companies, I just thought it would be less admin overhead to form an LLP, but I suppose it will still need to be registered at some stage for its own VAT, and employees would work direct for the LLP.

Hmm, as you say, tried and tested, maybe just stick with starting another Ltd

Steve

As far as I am aware the only advantage that an LLP would have over a Limited Company in the situation of two Limited Companies venturing together relates to the easier departure of one of the companies or the introduction of a new partner (in the sense of disposal/issue of shares and tax consequences). An LLP should be seriously considered if the relationship is unlikely to be long lasting.

If the venture is in the nature of a limited time project or projects then a Joint Venture, which is not necessarily a separate legal entity for tax and VAT is likely to be an easier approach although getting the agreement and rights, duties and obligations of the parties sorted may appear to be long winded but the process usually represents good commercial planning.

Steve,
When you form a LLP you are basically a sef employed individual who has entered into a partnership agreement.
You as a individual take care of your own tax etc....
We formed a LLP when we started up but was advised for TAX reasons to create a LTD company. Also had to do it to register for VAT.

Yup, but in our case the LLP would have been made up of 2 Ltd companies, apparently you can register a LLP for VAT as well, so it basically it's a Ltd as Barry says, all bar the liability.

So looks like it will be another Ltd, Keeps the accountants in work