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.
