Limited Liability Partnerships in Braintree and throughout the rest of the UK are just one of the choices you may make with regard to the way in which your business is to be run is the form that it is going to take. Do you operate as a sole trader, set up a partnership or look to incorporate your business with a Limited Company?
Limited Liability Partnerships refer to the kind of partnership whereby some or even all partners in a given business have limited liability. This effectively means it could be said Limited Liability Partnerships share many of the same facets as more standard forms of partnerships (where liability is unlimited) and companies where the ‘veil of incorporation’ acts to limit liability. The reason for this is that an Limited Liability Partnership means one partner in the partnership is not responsible or liable for another of the partners negligence or misconduct unlike in a more standard partnerships. This is because in an Limited Liability Partnership it has been found partners have limited liability similar to company shareholders.
Such a structure clearly influences Limited Liability Partnerships in Braintree and throughout the UK’s popularity. because one company cannot act as an auditor to another company regarding the regulation of its activities. The use of Limited Liability Partnerships is also becoming increasingly frequent for those working in the legal profession that are actually prohibited from being incorporated as companies as part of their profession. More specifically it has been recognised in the UK that Limited Liability Partnerships are governed by the Limited Liability Partnership Act 2000. This is because the remit of the Act itself introduced the business structure of a Limited Liability Partnership into domestic law and thus also provides for their regulation.
However, certain elements of the Companies Act 2006 have been applied to the regulation of Limited Liability Partnerships through the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009. Limited Liability Partnerships in Braintree and throughout the UK are also considered popular because it is another form of corporate body since it has been recognised as having a legal existence that is beyond just its membership. This means Limited Liability Partnerships are also deemed to be somewhat different to an unlimited liability partnership in the UK that does not have a legal existence based upon the nature and consistency of its membership. Moreover, a Limited Liability Partnership’s membership only has a collective responsibility to the extent this is the case in the agreement implemented between the parties but no individual responsibility for one another’s actions (although both the Limited Liability Partnership Act 2000 and the Limited Liability Partnerships Regulations 2001 will apply where there is no agreement)
Nevertheless, a Limited Liability Partnerships in Braintree and the rest of the UK are also considered to be something of a unique proposition. This is because an Limited Liability Partnership looks to synthesise both individual and collective rights and responsibilities. Furthermore, an Limited Liability Partnership is deemed somewhat flexible in practice since there is no requirement for an ‘Limited Liability Partnership agreement’ to actually take a written form. The reason for this is largely because the general regulations that are partnership-based have been found to be applicable through default provisions including the aforementioned Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and the Limited Liability Partnerships (Application of Companies Act 2006.
In much the same way as with a limited company, the membership of Limited Liability Partnerships in Braintree and throughout the rest of the UK cannot lose any more money than they actually invested in the partnership except where there is an instance of wrongful trading or fraud. Moreover, the use of Limited Liability Partnerships in Braintree and in other locations in the UK has also come to be popular in relation to matters of tax because they are also ‘tax transparent’ since they pay no tax themselves.
With this in mind, you are advised to seek assistance from a service provider like Andrew Douglas Wills and Legal Services to give you further advice about the preparation of Limited Liability Partnerships in Braintree and other locations throughout Essex with a view to protecting yours and your family and loved ones best interests.
