LLPs – remaining on the public register
Limited Liability Partnerships (LLPs) retain the flexibility of a partnership with the added advantage that a partner’s personal liability is limited. At least two members must be ‘designated members’ and the law places extra responsibilities on them.
The formation of an LLP is more complex and costly than a conventional partnership and problems can still arise when there are disagreements between the members. There is also the prospect of paying more tax on high profits than for companies.
The details regarding the information that has to be delivered to Companies House for an LLP is contained within the recently updated guidance published by Companies House entitled ‘Life of alimited liability partnership GPLLP2′.
The guidance explains what information LLPs have to deliver to Companies House if they want to remain on the public register once it has been incorporated. It is important to note that in the case of an LLP the designated members could be prosecuted for failing to submit an LLP’s annual documents on time. Additionally, there are automatic civil penalties in place for late submission of accounts.
The guidance applies to all LLPs registered in the United Kingdom (UK) i.e. England, Wales, Scotland and Northern Ireland.