Advantages and Disadvantages of Limited Liability Partnerships

There are many pros and cons of choosing to run your business as a limited liability partnership (LLP), this article considers these:

Advantages

  • Limited liability
  • The firm has a seperate legal identity
  • A flexible organisational structure
  • The ability to grant fixed and floating charges over the firms assets
  • The option to appoint an administrator.

Disadvantages

  • Having to file accounts and other documents with Companies House, such documents will then become public documents
  • The potential of ‘clawback’ provisions applying should the firm become insolvent
  • Transferring an interest in an LLP can be complicated
  • You cannot convert an LLP into a limited company.

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