Suitability of Businesses
Limited Liability Partnerships
Require at least 2 owners to exist. Formed under Limited Liability Partnerships Act 2000.
Hybrid between partnership and a limited company.
Pros:
1. Offers owners protection from liability of a limited company
2. Separate legal personality distinct from its owners like a company – it can buy, rent,
lease, own property, employ staff, enter into contracts and be held accountable if
necessary
3. Protects member’s personal assets from liabilities of business
4. Flexibility – operation of the partnership and distribution of profits is determined by
written agreement between the members
5. Corporate ownership – can appoint two companies as members of the LLP
6. Protecting partnership name – registering LLP at Companies House prevents another
partnership or company from registering the same name
7. Written agreement between members determines the terms of the partnership and
delivery of its profits. Provides for a more flexible approach when it comes to
management and the running of the company
Limited Liability Partnerships
Require at least 2 owners to exist. Formed under Limited Liability Partnerships Act 2000.
Hybrid between partnership and a limited company.
Pros:
1. Offers owners protection from liability of a limited company
2. Separate legal personality distinct from its owners like a company – it can buy, rent,
lease, own property, employ staff, enter into contracts and be held accountable if
necessary
3. Protects member’s personal assets from liabilities of business
4. Flexibility – operation of the partnership and distribution of profits is determined by
written agreement between the members
5. Corporate ownership – can appoint two companies as members of the LLP
6. Protecting partnership name – registering LLP at Companies House prevents another
partnership or company from registering the same name
7. Written agreement between members determines the terms of the partnership and
delivery of its profits. Provides for a more flexible approach when it comes to
management and the running of the company
