Limited Liability Partnerships Act 2000

The Limited Liability Partnerships Act 2000 (c.12) is an Act of the Parliament of the United Kingdom which introduced the concept of the limited liability partnership into English and Scots law.wikipedia
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Limited liability partnership

LLPlimited liability partnershipsLLPs
The Limited Liability Partnerships Act 2000 (c.12) is an Act of the Parliament of the United Kingdom which introduced the concept of the limited liability partnership into English and Scots law.
There is considerable difference between LLPs as constituted in the U.S. and those introduced in the UK under the Limited Liability Partnerships Act 2000 and adopted elsewhere.

Limited Liability Partnerships Act (Northern Ireland) 2002

2002 c. 12 (N.I.)Limited Liability Partnerships (2002 Act)
The Limited Liability Partnerships Act (Northern Ireland) 2002 is an Act of the Northern Ireland Assembly which introduced the concept of the limited liability partnership into Northern Irish law, passed two years after the Limited Liability Partnerships Act 2000 introduced the concept into the law of England and Wales and Scots law.

Act of Parliament

ActActs of ParliamentActs
The Limited Liability Partnerships Act 2000 (c.12) is an Act of the Parliament of the United Kingdom which introduced the concept of the limited liability partnership into English and Scots law.

Parliament of the United Kingdom

ParliamentUK ParliamentBritish Parliament
The Limited Liability Partnerships Act 2000 (c.12) is an Act of the Parliament of the United Kingdom which introduced the concept of the limited liability partnership into English and Scots law.

Juridical person

legal entityjuristic personlegal entities
It created an LLP as a body with legal personality separate from its members (unlike a normal partnership) which is governed under a hybrid system of law partially from company law and partially from partnership law.

Corporate law

business lawcompany lawcorporate
It created an LLP as a body with legal personality separate from its members (unlike a normal partnership) which is governed under a hybrid system of law partially from company law and partially from partnership law.

Companies House

Register of CompaniesRegistrar of CompaniesCompany No
Section 2 of the act provides that an LLP may be incorporated when two or more persons associated for the purpose of carrying on legal business subscribe their names to an incorporation document; that incorporation document, or an approved copy of it, has been delivered to the Companies Registrar at Companies House; and a statement either by a solicitor or one of the subscribers that the formalities have been complied with has also been delivered to the registrar.

Registered office

registeredregistered seat
It must contain the address of the registered office of the LLP, state the name of the LLP, state the name of the members of the LLP on incorporation, state which of those members are to be "designated members" or that all members will be "designated members" and also say whether the LLP's registered office is to be situated in England and Wales, Wales or Scotland.

Self-employment

self-employedSelf–employedself-employment tax
As with a normal partnership, a partner of an LLP is not regarded as being employed by the LLP—they are self-employed.

Joint and several liability

jointly and severally liablejointly and severallyjoint and several
However, unlike a normal partnership, the members of an LLP are not jointly and severally liable for the actions of another member.

Income tax

income taxesincometaxes
Members of an LLP are subject to income tax on their income as trading income in the same way as a normal partnership.

National Insurance

National Insurance ContributionsMinistry of National InsuranceNational Health Insurance Commission
They also pay class 4 National Insurance contributions in the same way as anyone else who is self-employed.

Capital gains tax

capital gainscapital gains taxesCapital gain tax
Capital gains tax applies to members of LLPs as to those in a normal partnership.

Stamp duty

stamp taxstamp dutiesDocumentary Stamp Tax
Within one year of incorporation of an LLP there is an exception to stamp duty on land transferred to the LLP if the person transferring the property is a member of the LLP and that the proportions of the property are the same as those before the transaction.

Liquidation

liquidatedvoluntary liquidationliquidate
LLPs are wound up and subject to insolvency in much the same way as companies.

Insolvency

insolventcorporate insolvencyinsolvency law
LLPs are wound up and subject to insolvency in much the same way as companies.

Insolvency Act 1986

IA 1986company voluntary arrangementsInsolvency Act
Section 14 of the act makes provision for regulations to be made applying certain provisions of the Insolvency Act 1986 to LLPs.

Companies Act 2006

CA 2006Companies Act2006
Most importantly, many elements of the Companies Act 2006 are applied to LLPs by regulations made in 2008 and 2009.

United Kingdom company law

UK company lawcompany lawcompany
Since the Limited Liability Partnerships Act 2000, partners can limit the amount they are liable for to their monetary investment in the business, if the partnership owes more money than the enterprise has.

United Kingdom partnership law

partnershipUK partnership lawpartners
A ‘partnership’ under the Limited Liability Partnerships Act 2000 is now considered a separate legal person (s 11) with limited liability (ss 1 and 14), though it is treated as a partnership for tax, and is not subject to so much regulation as would be a company.

John Burnett, Baron Burnett

John BurnettLord BurnettBaron Burnett
One of the high points of Burnett's parliamentary career was his promotion of the Bill which became the Limited Liability Partnerships Act 2000, allowing solicitors, for example, to remain in the traditional partnership arrangements while having some of the benefits of limited companies.