A limited partnership is a relatively new type of business structure created by the Limited Liability Partnerships Act 2000. It shares qualities with companies, limited partnerships and traditional partnership structures. Clearly document how to process and divest the assets of the limited partnership so that each LLP member knows their rights. The LLP structure is also more suited to a group of people who are involved in a real estate or financial business, where it may be necessary to take into account partners who come and go more often than you expect in a normal partnership business. The exact content of a limited liability partnership agreement will be based on the circumstances and needs of LLP and its members, who have considerable freedom to agree on all conditions they deem necessary and appropriate. One agreement can be very different from another in terms of scope, content and complexity. For these reasons, it is advisable to seek the advice of a lawyer or accountant before an agreement is reached to ensure that it best meets the needs of LLP members. Overall, the partnership right does not apply to an LLP, but agreements between partners can closely follow a traditional partnership agreement. The agreement they enter into is binding upon them after the registration of the LLP. Some LLP partners may not be members, but collaborators. In this case, the “partner” would be a professional title that refers to the status of a higher employment status and not the affiliation. This is often the case in professional services companies, where there are both salaried partners (employees who are entitled to a share of the company`s profits as a bonus through their employment contract) and financial partners (who are members who participate in both the profits and losses of the partnership).
An LLP is an organization that has the legal personality of its members and is governed by the 2000 Partnerships Act. You can benefit from the flexibility of the partnership model while protecting LLP members by limiting their individual responsibility. The Inheritance Tax Act 1984 was amended to provide that the partners and social assets of a LLP are treated broadly in the same way as those of a traditional partnership. Our corporate lawyers have extensive experience in the development of limited partnership contracts and in advising LLP in general. We help you with the strategic analysis of your LLP, provide you with well-developed documents and help you negotiate your government documents, from the terms of your business to the broader legal protections you need.