Limited Liability Partnerships (LLPs) were created in order to combine the flexibility of a partnership with the benefit of limited liability for its members.

It is an alternative corporate business medium that gives the benefits of limited liability but allows its members (there are no directors or shareholders) the flexibility of organising their internal structure as a traditional partnership.

This is because an LLP is a separate legal entity. The members of an LLP have limited liability however the LLP is liable for all its debts to the full extent of its assets.

The internal structure of the LLP is similar to that of a partnership. The members provide working capital and share any profits.

An LLP has no share capital and is not subject to the company law rules governing the maintenance of capital.

Disclosure requirements of an LLP however are similar to those of a company, including the filing of annual accounts. Among other things, they are also required to:

• File an annual return
• Notify any changes to the LLP's membership
• Notify any changes to their members names & residential addresses
• Notify any change to their Registered Office Address

However there are no requirements for board or general meetings or decision-making by resolution. An LLP also does not have a memorandum or articles of association.

An LLP is taxed as a partnership. Members are also liable to pay Class 2 and Class 4 National Insurance contributions.

Unfortunately LLP’s are not available to charities as the business must be carried out with a view to a profit.