Limited Liability Partnerships LLP
Accounting for limited liability partnerships (LLPs) requires expertise and an understanding of business structure. However, that said like conventional partnerships an LLP has the great benefit of simplicity for its partners. LLP status offers business owners the flexibility of self-employment with the advantage of limited liability.
Limited Liability Partnerships (LLP) are a great alternative entity to a limited company and are the fastest growing business entity.
- LLPs do not pay Corporation tax
- LLPs can benefit from employers NI savings
- Partners do not need to be concerned with PAYE, P11Ds or dividend vouchers
- Drawings can be taken against capital rather as well as income
- Partners can withdraw funds from the business bank account when required
- There are no tax penalties for the partners taking loans from the business
- Each partner is responsible for tax on their individual share of the profits
- LLPs can have limited companies as partners/members this can be additionally tax efficient
As with directors the partners in a limited liability partnership are generally not personally liable for the debts the business can’t pay. Their liability is limited only to the amount of money they have invested or assets held in the business.
We are able to offer advice and conclude the following.
- Register your partnership with the HMRC
- Incorporate your partnership with Companies House
- Establish designated members
- Obtain a UTR number for the partnership
- Obtain UTR numbers for the members/partners
- Draft a partnership agreement
- Percentage shares and ownership
- Establish Green Sock Clause
- Establish provision for salaried partners
- Prepare and conclude year end accounts for the partnership
- Self-assessment returns for the designated and member partners
- Revenue return for the partnership
- National Insurance Contributions
- Record keeping
- Maximising expenses that are tax deductible
- VAT registration, VAT schemes, quarterly returns and if and when you should register
- Claim all relevant allowances
- PAYE/ CIS Construction Industry scheme (If applicable)
- Ensure you meet deadlines and avoid fines and penalties