UK LLP Formation Services

Starting a business as an LLP formation is an excellent choice for individuals or companies seeking the flexibility of a partnership with the added protection of limited liability.

At Affotax, we provide a streamlined process for setting up an LLP, ensuring you meet all legal and regulatory requirements quickly, with ongoing support to help your business thrive.

What is an LLP Formation?

LLP formation provides a flexible business structure that combines the benefits of a partnership with limited liability protection, similar to that of a limited company. LLPs are ideal for professional firms such as solicitors, accountants, and architects, but can also be used by any business that benefits from a partnership structure with liability protection:

• Limited Liability: Protects members' personal assets from business debts.
• Flexible Profit Allocation: The profits of the LLP can be shared in any manner the members agree upon in the LLP agreement. This gives the business owners flexibility in distributing income.
• Management Flexibility: LLPs offer flexibility in terms of management. Members can manage the business directly without the complexity of a traditional company structure.
• No Minimum Capital: There is no requirement to invest a set amount of capital, unlike limited companies.

Why Choose an LLP Formation for Your Business?

LLP formation is an excellent option if you want the flexibility of a partnership with the security of limited liability. Here are some compelling reasons to choose an LLP:

1. Limited Liability Protection: Just like a limited company, members of an LLP are not personally liable for the partnership’s debts beyond their capital contributions.
2. Flexible Profit Allocation: The profits of the LLP can be shared in any manner the members agree upon in the LLP agreement. This gives the business owners flexibility in distributing income.
3. Management Flexibility: LLPs offer flexibility in terms of management. Members can manage the business directly without the complexity of a traditional company structure.
4. No Minimum Capital: There’s no requirement to maintain a certain amount of capital, unlike a limited company, making it easier to start.
5. Professional Structure: Ideal for firms like accountants, solicitors, architects, and consultants who want a flexible partnership structure with limited liability protection.

How to Set Up an LLP

The process of registering an LLP in the UK is simple and straightforward. With Affotax, you can form your LLP in just a few easy steps:

1. Choose an llp formation Name: Your llp formation name must end with “LLP” or “Limited Liability Partnership.” The name must also comply with Companies House regulations, ensuring it doesn’t duplicate an existing name or contain any sensitive words. The llp formation name can be different from your trading name, and you’ll need to check the name’s availability via Companies House.
2. Designate Members: An llp formation requires at least two designated members, who are responsible for the statutory obligations of the llp formation, such as filing annual accounts, submitting confirmation statements, and managing other compliance tasks. These designated members can be individuals or corporate entities. There’s no upper limit on the number of members, allowing for flexibility as your business grows.
3. Create an llp formation Agreement: The llp formation agreement is a key document that outlines the rights and responsibilities of the members, including how profits are shared, decision-making processes, and the management structure. While an llp formation agreement is not legally required, it is highly recommended to avoid misunderstandings among partners.
4. Register with Companies House: Once the members and the name are confirmed, you’ll need to submit the registration form to Companies House. This process involves providing details of the designated members, the registered office address, and the llp formation agreement.
5. Receive Certificate of Incorporation: After successful registration, you’ll receive a Certificate of Incorporation from Companies House, confirming that your llp formation company is now legally registered. This certificate allows you to begin trading.

LLP Formation Process: What’s Included?

When you choose Affotax for your LLP formation, we make sure you get everything you need to get started:

• Fast Registration: We aim to get your LLP company formation processed within 24 hours.
• Electronic Filing: We handle all the filings with Companies House on your behalf, ensuring the process is quick and seamless.
• Custom LLP Agreement: We can assist in drafting a comprehensive LLP agreement that reflects your business needs.
• Registered Office Address: You can use our registered office address for an additional fee, providing privacy and legal compliance.
• Online LLP Management: Our online portal allows you to manage your LLP’s legal documentation and receive reminders for important filings.
• Free Business Account: Get a free business bank account with cashback offers (subject to bank’s terms and conditions).
• Free Merchant Account: Set up your merchant account to start accepting payments, with cashback on qualifying accounts.

Key Advantages of LLP's Formation Compared to Limited Companies

While both LLP Formation and limited companies offer limited liability, the differences in structure and taxation make an LLP more suitable for certain business types. Here are the main distinctions:

1. Flexibility in Profit Sharing: Unlike limited companies, where profit distribution is rigidly determined by shareholding, an LLP allows members to allocate profits as per the LLP agreement.
2. Tax Treatment:LLP members are treated as self-employed, which can offer tax advantages depending on the structure and profit-sharing arrangements. In contrast, a limited company is subject to corporate tax on profits and dividend taxes.
3. Management Structure:LLPs are much more flexible in terms of management. While limited companies require directors and shareholders, LLP members can also manage the business without additional corporate governance.
4. Changing Membership: Adding new members or changing the structure of membership in an LLP is simpler and less formal than in a limited company.

Ongoing Obligations for Your LLP Formation

Once your LLP is formed, there are several ongoing compliance requirements that must be met to ensure the business remains compliant with UK laws:

1. Annual Confirmation Statement: Submit a confirmation statement to Companies House every year.
2. Annual Accounts: Prepare and file annual accounts with Companies House, detailing your business’s financial position.
3. Self-Assessment Tax Return: Each member must file a Self-Assessment tax return with HMRC, paying tax on their share of the profits.
4. Notify Changes: Notify Companies House of any changes to the LLP, such as changes in the members or registered office address.
5. VAT Registration: If your LLP's turnover exceeds the VAT threshold, you must register for VAT and submit quarterly VAT returns.

Start LLP Formation

Get started today with Affotax to form your LLP creation quickly and easily. Whether you need assistance with registration, compliance, or ongoing support, we’re here to help.

Contact us now to learn more about LLP registration and how we can help you set up your business.