A Limited Liability Partnership (LLP) shares many features with a traditional partnership, where two or more parties agree to work together for mutual benefit.
A key difference between these forms of partnership is that an LLP offers reduced personal responsibility for any business debts or liabilities. The LLP (similar to a Limited Company, an “LTD”) is primarily responsible for any liabilities, not the individual partners, because it is a separate legal entity to its partners.
A clear, well-drafted partnership agreement is fundamental to the smooth running of any partnership, and helps provide business continuity in the event of a dispute. They also help outline such things as: partners’ responsibilities, decision-making criteria, capital contributions, distribution of monies, and drawings.
We can advise you on all aspects of partnerships and LLPs, including their respective benefits and drawbacks.
Your business may face some serious risks if you have a homemade, unwritten, or unrecorded partnership arrangement.
We can draft an LLP agreement that protects the interests of the partners and helps you to achieve your commercial aims.
We also have considerable experience at mediating partnership disputes and taking legal action on behalf of a party involved in a serious conflict.
If you need advice on alternative partnership structures, or the transfer of a partnership into an LLP, we have the relevant experience to meet your needs.