Limited liability to protect your personal assets, flexibility to assign responsibility and profits as you see fit, no corporate tax requirements and the ability to protect your businesses name. LLP’s are an ideal solution for individuals looking to co own organisations such as dentists, solicitors or accountants..
What makes an LLP different from other company structures?
A limited liability partnership (LLP) is the middle ground between a partnership and limited company. In a partnership the co-owners are seen as self employed so there is no need to pay corporation tax but their liability is unlimited. A limited company limits director’s liability but places additional tax demands in the form of corporation tax.
An LLP provides owners with liability protection whilst also removing corporation tax obligations.
What accounts must an LLP file?
As with all businesses, LLP’s are required to submit annual accounts to Companies House. They do not pay corporation tax however and are not required to submit a tax return. Each partner is required to pay taxes via their self-assessment however, so many will enlist the help of personal accounts.
There are two exceptions to this:
If the LLP has a turnover requiring it to be registered for VAT
If the LLP has salaried members who must be processed through PAYE
You should also consider as part of your financial strategy and renumeration that there are no shareholders in an LLP therefore:
No dividends can be paid which can be seen as a tax efficient option in limited companies
Being unable to issue shares can reduce avenues for gain capital investment
The services we provideyour partnership
While there are more of you to spread business requirements around, you should still be looking to focus your time on the areas your knowledge and drive is best suited to.
That is why we at U&W provide a full suite of accounting services so that all partners are focused on the importance of growth. These services include:
Your own dedicated accountant
Preparation for statutory year end accounts
Xero cloud accounting software
Partner tax returns
Advice on partnership accounts setups
Reviewing and amending account structures when a new partner comes on board or an existing one leaves
If you want to know more about the ways we can help your business run more efficiently and grow then contact us via the form below.