Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Limited Liability Partnership - Essay Example

Comments (0) Cite this document
What is a Limited Liability Partnership (LLP)' Limited liability partnerships were created by the Limited Liability Partnerships Act 2000, and are known as "LLPs". Two or more individuals, corporations, partnerships, trusts, or other entities can join together to engage in business as an LLP…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Limited Liability Partnership
Read TextPreview

Extract of sample "Limited Liability Partnership"

Download file to see previous pages The members of a limited liability partnership have such liability to contribute to its assets in the event of its being wound up as is provided for by virtue of this Act.
Accordingly, except as far as otherwise provided by this Act or any other enactment, the law relating to partnerships does not apply to a limited liability partnership. The Schedule (which makes provision about the names and registered offices of limited liability partnerships) has effect (
purpose of this is to introduce a new form of legal entity known as Limited Liability Partnership (LLP). This will help resolve the difficulties arising in the traditional partnerships for larger professional practices. The LLP is not limited to large companies. The professionals who are usually involved in this partnership are the law firms or accountancy that can have partners' world wide. LLP is an alternative business vehicle that gives the benefits of limited liability but the members can have the flexibility in forming the internal structure as a traditional partnership. It composes of both the corporate and partnership characteristics.
The LLP has its own benefits that make the partnership more interesting. The limited liability is one of the enticing attribute of LLP that includes protecting the partners or members personal assets such as cars, homes, stocks and etc., This limited liability varies depending on the location of the partnership. It protects the partner in errors and negligence. Another advantage of LLP is the flexibility afforded to the entity through its management structure. Corporate formalities need no further observation as normally imposed by corporations. Pass-through tax treatment in LLP is passed through to its partners or members and taxed at the individual partner or member level. Flexible capital structure - owners are asked to provide flexibility in setting up a capital and compensation structure. Members or partners can distribute profit in any manner agreed by the corporation. (Suzuki, J., 1999).
Limited Liability Partnership is not sometimes taken into consideration because of the following reasons ( Derrick G. 2003-2004 ):
1) Once become bind with LLP, the money and property contributed becomes owned by the partnership unless otherwise indicated in the agreement. The contributor is not entitled for a return unless otherwise agreed by the members.
2) LLP varies in legalities and liabilities by state. Some state does not recognized the LLP, do not have the easy of transfer and investment that a corporation structure provides and therefore are regarded as less preferable to other business forms.
3) All income allocated to the owners is subject to self-employment tax. Only a portion of salary allocated for dividends is exempted for SE tax.
4) Since the LLP owners are not employee they are not entitled for a deductions for Medical expenses such as health insurance and other medical expenses.
5) The LLP are needed to provide $500,000 of security against claims, either through insurance, escrowed deposits, letter of credit or security bonds. Potential loss of limited liability
Aside from the above reasons why it is not yet taken up by other
companies is because of its infancy. Since it is a new structure the topic about tax and legality are not yet polished. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Limited Liability Partnership Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Limited Liability Partnership Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Limited Liability Partnership Essay Example | Topics and Well Written Essays - 1000 Words)
Limited Liability Partnership Essay Example | Topics and Well Written Essays - 1000 Words.
“Limited Liability Partnership Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Limited Liability Partnership

Partnership and limited liability partnership in the United States

..., they are required to be written down on paper and appropriately signed by all members in the partnership. This is done for future reference and each party often advised to keep a copy of the agreement. Articles of partnership are often drawn by the partners who are members of the partnership in order to make the document legally enforceable by law. (Smith 17). The roles of partners are often quite defining as to the nature with which they interact with the organization. In a general partnership, all partners manage the business and are personally liable for any expenses that are incurred during the management of the business. In the United States, there have been established limited liability partnerships which have got different features...
18 Pages(4500 words)Essay

Limited Liability and Partnership Corporation

...?Introduction:- Limited liability Company is a popular form of a company as one can limit the liability of sole proprietors or partners by establishing the company as limited liability company. This form of business is taken up as companies grow and expand, or in cases where individuals seek to magnify the scope of their businesses and seek to consolidate their comparative business standing. It must be noted, however, that limited liability companies may not necessarily work for profiteering (Jitman, 2009). This is a hybrid form of business that has characteristics of both sole proprietorship and partnership. Some of the reasons why the business has become so popular are: - 1) Limited Liability: - The clause of limited liability ensures...
3 Pages(750 words)Essay

Limited Liability Partnership

...tion platform, we will earn our income from advertisements, which are posted, on our websites. This means that the higher the number of registered social networkers, the greater the outreach of advertisements. We intend to have a global presence and a minimum of 250,000 registered people by the end of the first fiscal year. To achieve our noble idea, we have decided to form a partnership business with the two investors. We will register our partnership business under the Uniform Partnership Act of 1996 that govern partnership businesses in the US. Our business will be a limited liability partnership that will strictly follow the regulations laid by the Act. Limited liability partnership has several advantages that have fascinated us to...
3 Pages(750 words)Essay

Mechanisms Provided by The Limited Liability Partnership Act 2000

...Liability Partnership Act 2000 The Limited Liability Partnership Act, also known as the LLPA, is an act that provides for a framework under which limited liability partnerships are created. This act was developed in the United Kingdom as a result of corporate accounting firms’ pressure with regards to the need for the creation of a framework that combines both the benefits of limited liability and the flexibility of partnerships ( n.d.). According to the Limited Liability Partnership...
7 Pages(1750 words)Term Paper

Limited Liability Partnerships

... as a legal entity where limited liability exists, this was not so in the case of partnerships, which were not legal entities and thereby made partners legally liable for all the firm's debts. The Limited Liability Partnership has the following features (a) it has a separate legal personality (b) liabilities of individual members are limited to the amount they agree to pay in the event of an insolvency (c) partners are expected to adhere to the duties and obligations currently imposed upon Directors of Companies (d) the LLP is not expected to hold AGMs or observe the rules for shareholder protection set out in the Companies Act and (e) agreements about how the affairs of the LLP will be run are left to the discretion of individual members...
5 Pages(1250 words)Essay

Limited Liability Partnership

...Question What are the implications for a business establishing as a Limited Liability partnership and what 'flexibility' does it provide compared with limited companies Answer Limited liability partnership is a concept relating to the liability of the partners as it implies from its name. As we all know that in the partnership form of conducting business, every partner is responsible by law for the actions and deeds of other partners in the business. Now the question arises that what does responsible by law means for the partner's deeds. It means that when a business is being conducted by a group of persons in the form of partnership then they have to pay for all the liabilities, debts and loans which were taken by their partner...
9 Pages(2250 words)Essay

Limited Liability Corporation and Limited Liability Partnership Paper

...Running Head: LLC & LLP Limited Liability Corporation and Limited Liability Partnership Paper There are a few key differences between LLC and LLP formations. Foremost among them, LLP is generally more suitable for specialized professional firms such as law firms, accountancy firms, architects, etc. LLC, on the other hand is apt for larger business whose core focus is manufacturing. LLC is an ideal choice for those business owners who would like to take advantage of tax benefits offered thereof, while also able to install an organizational structure resembling a private or public corporation. Limited Liability Corporation and Limited Liability Partnership Paper: One of the key advantages of limited liability partnerships (LLPs...
4 Pages(1000 words)Essay

Limited Liability Partnership

... Limited Liability Partnership Introduction This paper is an attempt to understand limited liability partnerships businesses in compare and contrast with other forms of businesses. Therefore, it becomes vital to discuss the different other types of businesses and their characteristics. This is why this section of the paper focuses on briefly discussing the other types of businesses which would build a basis for the next section of the paper were the core discussion regarding Limited Liability Partnerships would take place. This paper would start by discussing the simplest form of business, which is sole proprietorship or sole trader firm. These businesses are the most common and simplest ones since they just have one owner who runs...
7 Pages(1750 words)Coursework

Liability Issues - Limited Liability Company

...Liability Issues - Limited Liability Company Introduction This paper is based on a case analysis that is based on three friends who have graduated from the Computer Science Department of the Manchester Metropolitan University who desire to run a business that will buy and sell computers, computer software and accessories. The paper provides advice on how to incorporate their business and carry out their transactions in order to attain the best and optimal results. Types of Business Options There are three main types of businesses in the UK and these are: 1. Sole traders 2. Limited companies and 3. Business partnerships (, 2014) Under each of these three types of businesses there are sub-categories and specific types of business...
6 Pages(1500 words)Essay

Limited partnership

... s Limited Partnership A limited partnership is a form of partnership created by statute that comprises of bothgeneral and limited partners. This is unlike the general partnership that has only general partners. The liability of the limited partners is limited to the amount that they contribute to the formation of the business. They are more of investors that partners in the business. They are also not involved in the management of the business. The general partner on the other has an active role to play in the running and management of the business. These partners have a right to use the property of the partnership, and also to share profits and losses of the partnership in the proportions defined. One partner may be both a general...
1 Pages(250 words)Essay

Alcoholic Drinks in the United Kingdom: Larghall Leisure Limited

Yet, more and more studies have shown that binge drinking, particularly in underage drinkers, is becoming a growing problem. Binge and underage drinking could affect Larghall Leisure Ltd.’s pub licenses for a couple of reasons.
 A proposal to impose a forty-eight-hour ban on any pub consistently caught supplying alcohol to underage drinkers has been initiated (Great Britain 2005). Pubs will also need to have a drug policy by April 2006. The license council and police will inspect the pubs more frequently. There is also a new ban on irresponsible drink promotions and low priced promotions (Great Britain 2005). These new laws might have far-reaching implications on Larkhall Leisure Ltd.’s pubs.
The need ha...
7 Pages(1750 words)Assignment

Vicarious Liability

In any case, they can sue the individual workmen in their personal capacity or jointly with Whacky Builders Ltd.
Typically, employers are liable for the negligent conduct of employees and the consequences stemming from that conduct. First and foremost, the conduct complained of must take place in the course of employment. Early development at common law resulted in the ‘control test’ which is a means by which employee/employer relationships are defined. The ‘control test’ was introduced in Yewens v Noakes where it was held that an employee was a person who is under the directions and command of another. The person exercising command is the employer. (Yewens v Noakes (1880) 6 QBD 530.)
Further de...
10 Pages(2500 words)Assignment

Strict Liability of Law Philosophy

The use of the strict liability is also justified on the ground on of adoption of legal policies which attains a socially desirable purpose which the legislative body has the sole prerogative to promote and protect in the pursuit of public welfare. Arguments for and against the thesis using decided cases and other author’s views will also be discussed and resolved any issues will follow on the basis of whether there is enough ground or to uphold the thesis of this paper.
Strict liability rule first is beneficial to society. In at least two decided cases this theory was clearly shown by the courts. The first is the case of United States V. Balint et al., 258 U.S. 250 (1922). The facts of the said case had it that “...
7 Pages(1750 words)Coursework

Some Companies Purchase Directors and Officers Liability Insurance

 Governments occasionally use criminal laws to attack the conduct of directors and officers.
Liability insurance is available to cover some of these judgments. Often it is known as "directors and officers insurance," or "D&O insurance." This article discusses some significant parameters of D&O liability, expounds on some of the ways typical D&O insurance contracts work, and explores the law governing this type of insurance. This article does not discuss general principles of D&O underwriting, principles of D&O risk control, or the process of dealing with D&O claims.
It is becoming fashionable to refer to D&O insurance as a form of "executive liability insurance." One leading D&O car...
8 Pages(2000 words)Coursework

Corporate Financial Analysis: HBG UK Limited

Analyzing a company’s financial performance is crucial in determining the actual performance and investment potential of a business within the industry. The financial analysis not only gauges the internal but also the external aspects of a company.

Specifically, the use of financial ratios is considered as efficient indicators of a company’s financial situation and overall performance. Most of these financial ratios are calculated from the data provided within the financial statements of the company. Financial ratios are not used only in determining the performance of the company but also in comparison to other competitors’ financial status and the possibility of future bankruptcy.

HBG UK Li...
14 Pages(3500 words)Case Study

Fundamental Difference between a Partnership, a LLP and a Private Limited Company

An unqualified form of partnership places the entire burden of business liability on the partners of the firm. On the other Limited Liability Partnership (LLP) and a Private Limited Company do not impose as much liability as the Partnership does.  

An LLP is almost similar to a standard form of a partnership without unlimited liabilities on the partners. Partners’ liabilities are differently prescribed in that liability caused by any error of one partner need not affect the other partners. State registration is required but some of the states stipulate that partners should take liability insurance or has adequate assets to meet likely claims. This is very much applicable to firms of professionals like account...
13 Pages(3250 words)Term Paper

Institutional and Strategic Barriers to Public-Private Partnership

... and the population was highly limited. With the growing population mass housing projects have become an absolute necessity to eradicate the lack of housing. At the same time, environment requirements are the ruling necessities of present and future. With the help of PPP, modern requirements are considered to be easier and more authentic, mainly because the skills and resources of both public and private sectors are available. Hence, the necessity of research in this field has become almost unavoidable. AIM OF THE RESEARCH With the concept of PP partnerships coming into focus, case studies are gaining importance. Methodologies of contracting, inevitable changes in the traditional field, different concepts of maintenance and operations...
9 Pages(2250 words)Assignment

Does Gender and Age Matter as a Sales Person in the John Lewis Partnership

...). Universe of the Study The study is concentrated and limited to the department stores of the John Lewis Partnership in the United Kingdom. Sample Size Ten department stores of the John Lewis Partnership will be randomly selected as sites of the study. This random selection will mean that any of 29 department stores will have an equal opportunity to be a part of the study. In each of the selected department stores thirty participants, who are regular patrons of the department stores will be recruited for the study, again on a random basis, which means any of the regular patrons have an equal opportunity to be a part of the study. The thirty participants will be further classified into age groups of 25-35, 35-50 and above 50, with ten...
8 Pages(2000 words)Research Proposal

Management Accounting at Venture Corporation Limited

..., traditional budgeting and variance analysis are very important in the present manufacturing environment in order for a company to meet the global competition. This paper looks at the relationship between management accounting system and a company in Singapore. Venture Corporation Limited was founded in Singapore in 1984 and mainly deals in manufacturing of electronics. The company is a global company that provides high-tech products and services, offers world class management and innovative technology. The company has an excellent track, qualified expertise and expertise placing the company as a first class service and products provider. The company is highly reputable and this has earned it world class customers such as HP, Intermec, IBM...
8 Pages(2000 words)Case Study

Shell Petroleum Company Limited, United Kingdom

...Regents Shell Oil Company, United Kingdom by [Lecturer’s and Number] Shell Petroleum Company Limited UnitedKingdom Table of contents Contents Table of contents 2 Introduction. 3 Tax and Legal Operations of Shell UK. 3 Environment Pollution Challenges Facing Shell UK. 4 Future Research and Developments by Shell UK 7 References 9 Introduction. Shell Petroleum Company Limited, United Kingdom is one of the subsidiary companies of the Royal Dutch/Shell groups of companies. Shell UK is involved in the exploration and production of oil products, chemicals, gas, and power. The smaller divisions of the company specialize in exploration and production of hydrogen, coal, forestry and renewables. In the recent years, Shell has established...
8 Pages(2000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Limited Liability Partnership for FREE!

Contact Us