Advantages

• Members can limit their liability for losses
  
• Has organisational flexibility of a partnership
  
• Potential additional finance
  
• Shared responsibility for risks and costs
• Do not have to be dissolved on the resignation, death or bankruptcy of a member

Contact a solicitor or accountant for advice

• Formalities involved in setting up
• Required to produce annual accounts which must be audited if the turnover for a financail year exceeds £1m
• Filing requirements with strict time limits must be adhered to

• Must register at Companies House
• An incorporation document will need to be completed and include a statement that the LLP has complied with the requirements for incorporation

• Check if your business name is legally acceptable (see 'Choosing a business name')
• Need to display the LLP name, place of registration, registration number and address of registered office on business stationery

• Each member must be registered as self-employed with Inland Revenue
• You need to inform the local Tax Office and your local Job Centre where necessary

Newly Self-Employed Helpline 08459 15 45 15 8am - 8pm, 7 days a week

To speak to someone in Welsh call 08457 660 830

Minicom users: 08459 153 296

• Members are liable for income tax on their share of the net profit
• Each member will normally pay Class 2 NI and Class 4 if profits are above a certain limit

• You must register if your turnover is £54,000 or more in a 12 month period

Custom & Excise: 0845 010 9000

• As a corporate body, it can take on employees