Limited Liability Partnerships (LLP's)
The principle difference between partnerships and limited companies is that there are no shareholders to dictate or direct the future of the business. The partners have total control of the business and, so long as they are in agreement, can shape the future direction of their business.
Although the partners share equally in the profits of the business they are equally liable for unlimited losses. Generally this will lead to the formation of a limited liability partnership (LLP). A limited liability partnership enjoys the benefit and flexibility of a partnership but restricts its exposure to liability.
Partners in this arrangement are also subject to taxation in line with a sole trader. Each partner must submit a self-assessment and must register with HMRC as self-employed.
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