Limited liability partnerships (LLPs) are in law regarded as bodies corporate and are subject to aspects of company law1, but for tax purposes they are generally treated as partnerships2.
The LLP structure allows members to limit their liability while organising themselves internally as a partnership. This structure is inherently appealing to professional partnerships as it reduces the potential risk of substantial personal liability of the individual partners. However the LLP structure is available to a much wider group of persons and businesses.
The majority of law applicable to LLPs is actually modified company law rather than partnership law. LLPA 2000 expressly states that, except as otherwise provided in that Act or regulations made pursuant to it, the law relating to partnerships does not apply to an LLP3.
Due to the fact that an LLP is a company, it has a legal personality separate from its members. This means that, like a company, it is liable for its own debts, it will contract in its own name with third parties and it can sue
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Web page updated on 17 Mar 2025 17:17