limited liability partnerships

Limited liability partnerships are an incorporated legal entity. Members of a limited liability partnership (“LLP”) are liable up to the extent of their contributions to the LLP, or that which they have agreed to contribute to the LLP between themselves.

In this way, the exposure of partners of an LLP differs greatly from that of traditional partnerships, where liability of the partners is unlimited.

LLPs are governed by the incorporation document filed with Companies House at the time of its incorporation. The partners are entitled to agree to a partnership deed which governs the internal affairs and administration of the partnership between the partners inter se.

Limited liability Partnerships

LLPs otherwise share many traits with traditional partnerships:

1. Each partner is an agent of the LLP and able to bind the LLP to legal obligations;
2. Partners account to one another for the profits properly due to the partnership;
3. as the partners are in a fiduciary relationship with one another, to share all information relevant to the affairs of the LLP, and not compete with it;

As an incorporated legal entity, it has a separate legal personality to that of the partners.