How to set up an LLP

Copyright © 2026 LexisNexis
Produced by Tolley in association with Jackie Barker of Wells Associates
Owner-Managed Businesses
Guidance

How to set up an LLP

Copyright © 2026 LexisNexis
Produced by Tolley in association with Jackie Barker of Wells Associates
Owner-Managed Businesses
Guidance
imgtext

This note explains the legal requirements that must be met in connection with the incorporation of a limited liability partnership (LLP), what forms need to be completed to register the LLP with the relevant authorities and the practical steps that need to be taken.

Key requirements to form an LLP

An LLP must be formed for the purpose of carrying on a lawful business with a view to making a profit. At least two persons must form the LLP, known as the initial subscribers, who may include individuals, companies, trustees and / or other LLPs.

The subscribers of an LLP are known as members. There is no limit to the number of members who can be appointed, and the only restrictions are that members must not:

  1. •

    have been disqualified from acting as a company director or member of an LLP, or

  2. •

    be an undischarged bankrupt

It is possible for a minor to be appointed as a member of an LLP if it is commercially justifiable to do so although, generally, this

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Jackie Barker
Jackie Barker linkedinicon

Tax Partner at Wells Associates , Corporate Tax, OMB, Employment Tax, Personal Tax, VAT, IHT Trusts and Estates, Accounting

I have worked in tax since becoming an associate of the CIOT in 2004, having previously qualified as a member of ACCA.As tax partner with Wells Associates I advise on all aspects of direct taxation including personal and corporate planning. We work with a wide range of individuals and owner-managed businesses offering guidance and support at all stages, from assisting with compliance matters through to advising on more complex strategic matters and providing tax efficient solutions.

Read moreRead more
Powered by Tolley+™
  • 18 Dec 2025 10:40

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Advising partnerships

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
tag-icon Tax Returns
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more