Limited Liability Partnerships

Why it's commonly used:

• Allows partners to run a business together and share profits using an internal arrangement, but without the full personal risk that comes with a standard partnership. Each partner’s financial exposure is limited, making it a safer option for individuals in professions such as law, accounting, as well as consultancy.

• An LLP is a separate legal entity, meaning it can own assets, enter into contracts, and take on liabilities in its own name.

• LLPs retain the flexible, informal structure of a partnership. Partners can directly manage the business and agree internally on how profits, responsibilities, and decision-making are shared.

• Profits are taxed at an individual partner level, avoiding corporate double taxation via Corporation Tax.
  
• Allows the LLP to exist indefinitely - after an original partners retire or die.
• Widely recognised by professional regulators as the natural choice for regulated professions.
• One partner cannot be held liable for the professional mistakes or misconduct of another partner.