An LLP offers the flexibility of a traditional partnership but with the added protection of limited liability. This means that the your overall liability is limited to the sums that you’ve invested into the partnership. However, if the LLP borrows money from a bank, then each partner will likely have to sign a personal guarantee against the debt.
LLPs are registered at Companies House and must file accounts once a year. The financial information submitted is similar to that of a Limited Company.
LLPs are often used by professions such as accountants, lawyers and IFAs. Their structure allows for the admission of new partners and the exiting of old partners without having a complex restructuring.