Limited liability partnership (LLP) is a new type of business formation or partnership in which sole partners have limited liability, unlike traditional partnerships. An LLP is created by the Limited Liability Companies Act 2000. In a limited liability company, all liability rests with the partnership, not the individual partners. The sole partners of an LLP are not liable for the debts of the entire business. It is the best option to start and run a business independently.
accounting for limited liability partnership
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We provide business accounts, tax returns, VAT returns, accounting services, self-assessments, payroll services, etc., to sole traders, limited liability companies, partnerships, LLP, to entrepreneurs and individuals across the UK. We are best known for our all-inclusive unlimited service plan, which includes all accounting services required by a UK business and more for a fixed monthly fee.
LIMITED LIABILITY COMPANY (SARL)
A SARL is a company where the liability is limited to the amount of the contributions and which has the characteristics of a mixed company of 2 to 100 people (according to the new Swiss law a single person can also create his own SARL), in particular because the shares held in the capital are not freely accessible without the agreement of all or part of the shareholders.
Advantages of LLC
Liability limited to contributions: protection of the personal assets of each partner and its manager (except for lack of management), the SARL having its own legal personality and a separate asset
Possibility of associating, with very framed operating rules: reassuring for the partners, who adhere to the statutes of the Company in full knowledge of the facts
Simplicity of management: this is the easiest form of company to manage with real but all in all moderate accounting and legal obligations
Interest of the corporate tax regime: it is the SARL that pays tax on its profits and the partners are only taxed on the sums they receive from the Company (remuneration, dividends)
Social status of the majority manager: special SSI scheme (Social Security for the Self-Employed), with social security contributions on remuneration being lower than those of the general Social Security scheme.
Disadvantages of the LLC
Administrative heaviness: articles of association to be drafted, accounts to be drawn up annually, to be approved and filed with the Registry of the Commercial Court, etc.
Social status of the majority manager: it must be a natural person, who falls under the social regime of TNS (Non-Salaried Workers). He does not benefit from any protection under unemployment insurance (except private insurance).
Dividends: part of the dividends paid to the majority manager is subject to TNS social contributions, unlike the dividends paid to the managers of an SAS.
Creation of a limited liability company
If you are setting up a limited liability company, here are some key points to consider for LLP registration with Companies House and HMRC.
It must have a minimum of two members who will be responsible for guaranteeing all legal obligations.
You must provide a registered business name and office address that will be used to send publications.
Provide standard industry codes (SIC) to explain how your LLP works.
Information about members who are typically PSCs (persons with significant control). You must report changes if you have made any.
