Limited Liability Partnerships (LLP) are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners.
An LLP is a popular structure for professional services such as accountancy and legal firms.
An LLP must be registered at Companies House, and at least two partners must be ‘designated members’ who take responsibility for filing the annual accounts.
Advantages of Limited Liability Partnerships
- As with an ordinary partnership, each partner in an LLP registers as self-employed and submits a separate tax return. But if the business fails, each partner is only liable for the face value of his or her share.
- The liability of the business isn’t down to one single person, this includes financial issues and business responsibilities.
- The flexibility of what and how much each partner contributes to the business.
- Unlimited amount of business partners.
Disadvantages of Limited Liability Partnerships
- The administrative burden of an LLP is similar to that of a limited company, so an accountant and company secretary may be desirable (though not required by law).
- Bookkeeping and accounting of a LLP is more complex as you are required to keep accurate records as you go along and to submit a range of data each year.
- Certain information on the LLP, its members is available in the public domain.
How can we help with LLP accounting?
Accounting for Limited Liability Partnerships is a complex area that requires expertise and an established understanding of the business' structure.
To ensure these processes run seamlessly, Hysons, Chartered Accountants will assign an accountant dedicated to supporting your LLP. In addition to submitting your LLP's annual accounts, tax return, confirmation statement and self assessments, we will send you reminders of all deadlines of when accounts and tax returns are due to be submitted.
Your dedicated accountant will always be on hand to answer any queries, in addition to continually conducting tax efficiency reviews throughout the financial year to ensure your LLP is operating at maximum efficiency.
Why choose Hysons?
We believe a company can only be as strong as its financial management. That's why Hysons, Chartered Accountants in Hampshire are dedicated to forming a relationship with our clients that enable us not only to understand their needs but explore how we can exceed expectations as well.
To find out how you could benefit from our LLP accounting service, contact us today to book a free accounting consultation.