What is a limited liability partnership (LLP) for tradespeople?

What is an LLP?

A limited liability partnership is a business with at least two designated members.

In most cases, an LLP is between two people, but it can be a company and an individual joining together.

As a partnership, each member is responsible for paying taxes on their share of the profits (and any other personal taxes they need to pay).

如果企业负债累累，那么个人成员就不需要对债务负责。因此得名，有限责任。

How to set up an LLP

建立有限责任公司是一个简单的过程。You need to:

• Choose a name—您可以选择任何您喜欢的名称，但必须以LLP结尾。Use theCompanies Housename search toolto find a unique name that hasn’t been used before.
• Have a single registered address- This can be a home address or shared premises. The address will be publicly available.
• Have at least two designated members- LLP members can be two individuals who agree to work together, or an individual and a company.
• Create a LLP agreement- This details how the partnership is structured and how it will be run.
• Register the LLP with Companies House-This formalises the agreement and will make the partnership legally binding.

一旦你完成了所有这些，你的合伙人关系就在法律上成立了。

You can find a full list of rules and regulations about setting up an LLP here on theGovernment website.

Formal v informal partnership

A limited liability partnership is a legal relationship between two people (or parties). A general or informal partnership is an agreement between two people to work together.

An LLP partnership involves some paperwork and legal documentation, whereas you can make an informal alliance with a handshake. You don’t even need a contract.

主要的区别在于争议解决。如果你在LLP合伙制中遇到麻烦，你的角色和责任都很明确。

Disputes in informal partnerships, where no contract exists or has ever been signed, can be much more complicated to manage.

If you decide that an informal partnership is right for you, you may want to consider taking similar steps as if it were going to be an LLP. These might include:

• Using written contracts
• Having a shared business bank account
• Outlining in writing each other’s roles and responsibilities
• Mediation steps should the partnership breakdown

Whatever type of partnership you decide works for you we recommend getting something down in writing that you can both sign.

Benefits of a partnership

• 你可能已经有了合作伙伴，想要正式签订协议，或者是第一次合作;无论如何，有限责任公司都是一种具有法律约束力的正式协议，为公司的发展提供了坚实的基础。
• By pooling resources as partners, you can reduce overheads and ongoing costs. You’ll find insurance, accountancy, and office costs are all lower when shared between two.
• As well as expenses, you share the management of the partnership and its future direction. In business, two heads are (almost) always better than one.
• Working with a partner adds security for those who work with you and can add scalability. This may mean you’re able to bid for and win larger pieces of work, which can help your business grow.
• If the partnership fails, or you run into financial trouble, your assets remain protected.
• If you have complementary skills or trades when put together you might be able to branch out into new lines of work or projects.

Downsides of a partnership

• 作为一名LLP合伙人，你必须和另一个人一起度过好时光和坏时光。当生意好的时候，你可以分担工作，但当生意不好的时候，你必须分享利润——这可能意味着更少的利润和更少的报酬。
• 与做一个单独的交易员相比，需要更多的文书工作和更高的运营成本，比如会计费用，这可能会侵蚀利润。
• If the partnership fails for any reason, there are legal hoops you have to jump through to terminate it. While it’s not impossible, it can take time and cost money.
• Working with a partner requires clear communication and a shared vision of the future for the business and its growth. You’ll need to ensure that you and your partners both have the same plans for your business, or things can quickly get messy.

Like any relationship, partnerships can be complicated and occasionally messy - but when they work, they can transform how you operate for the better.