Limited liability partnerships (LLPs): essentials for employment lawyers
Limited liability partnerships (LLPs): essentials for employment lawyers

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Limited liability partnerships (LLPs): essentials for employment lawyers
  • Nature of an LLP and its legal framework
  • Forming a limited liability partnership
  • LLP agreements
  • Taxation of LLPs
  • Trading disclosures and ongoing filing obligations
  • People with significant control (PSC)
  • Ending an LLP
  • Restoration of an LLP
  • Joining or leaving an LLP
  • more

This Practice Note sets out an overview of limited liability partnerships and is aimed at providing employment lawyers with the essentials of the topic. It contains links to more extensive, detailed Practice Note material.

A limited liability partnership (LLP) is a body corporate which is formed under the Limited Liability Partnerships Act 2000 (LLPA 2000), which came into force on 6 April 2001.

Nature of an LLP and its legal framework

The majority of law applicable to LLPs is actually modified company law rather than partnership law. In particular:

  1. the Limited Liability Partnerships Regulations 2001, SI 2001/1090 (LLPR 2001), apply provisions of partnership law to LLPs

  2. the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009, SI 2009/1804, apply many parts of the Companies Act 2006 (CA 2006), with appropriate modifications, to LLPs, and

  3. the Limited Liability Partnerships (Accounts & Audit) (Application of the CA 2006) Regulations 2008, SI 2008/1911 apply parts of the CA 2006 in relation to accounts and audit to LLPs

For further guidance, see The nature of a limited liability partnership and its legal framework.

Forming a limited liability partnership

The process for incorporating an LLP is very similar to the procedure for company incorporation. There are three requirements for the incorporation of an LLP:

  1. two or more persons associated for carrying on a lawful business