Limited liability partnership
In recent years, it has become more common to incorporate a partnership into a limited liability partnership. The main advantage of an LLP is that the liability of the members can be limited unlike a general partnership where the partners have unlimited liability. There can also be tax advantages in incorporating.
A limited liability partnership is not a company, it is a different type of legal entity. The stakeholders are members not shareholders and it does not have directors. The designated members are responsible for ensuring that the partnership complies with its obligations under the Limited Liability Act 2000 (Act).
There is no legal requirement to enter into a “members’ agreement”, but in the absence of a written agreement, the default provisions of the Limited Liability Act will apply. These include that all of the members will have an equal profit share and will have equal rights to manage the business.
At Myers & Co. we can help you to put in place a partnership agreement or an limited liability partnership agreement to override the default provisions. We can also advise on other relevant matters for example, restrictive covenants or garden leave provisions.
Based in Stoke-on-Trent, Staffordshire, our commercial lawyers have a reputation for providing accurate advice, and dealing with complex problems in an efficient manner. For further advice contact Myers & Co Solicitors on 01782 577000.
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