LLP abbreviates to Limited Liability Partnership is just like any other partnership business in which the members involved have limited or less number of liabilities to the losses or debts that occur because of the business. In other words Limited Liability Partnership offers the partners flexibility in operating a limited company. You can register an LLP with the help of a company formation agent or by self filing the application for an LLP. To register an LLP you need to file the application that can be procured from Companies House.
The very first step to register an LLP is to agree upon the “Deed of Partnership” agreement. Deed of Partnership agreement is a legal binding between the partners regarding their responsibilities & rights of each individual. The partnership deed agreement consists of various other administrative details such as the investment made by each individual, name & address of each individual apart from their roles & responsibilities. This agreement as well gives details as to what are the modifications that have to be done in case any of the partners decides to quit the business at any point of time.
To register an LLP, you don’t require Articles of Association or Memo of Association. Just after you register an LLP & it is completely formed you ought to submit the accounts annually & file annual returns with the companies’ house. In order to do this, two of the partners in an LLP must be designated members who meet all the statutory requirements after you register an LLP.
The minimal requirements to register an LLP include:
1) Deed of Partnership Agreement
2) Two or more partners
3) Registered address
After you simpleformations register an llp you also need to nominate a member who will file the annual partnership tax returns & deal with the Inland Revenue department. For the reason that profits in an LLP are distributed among all its partners, they are liable for applying the taxes however the tax liability does not fall upon the LLP. As well you need to apply for a VAT registration for the LLP in case your business expects to generate a revenue of more than sixty seven thousand pounds.