Guide

Set up and run a limited liability partnership (LLP)

Last updated: 7 March 2017

Members' responsibilities

You must have at least 2 'designated members' at all times - they have more responsibilities, eg keeping company accounts. You can have any number of ordinary members.

Making the LLP agreement

You should make a limited liability partnership (LLP) agreement with any other members as part of setting up your LLP. This document sets out how the LLP will be run, including:

  • how profits are shared among members
  • who needs to agree decisions
  • members' responsibilities
  • how members can join or leave the LLP

A solicitor can help you prepare an agreement or you can write your own.

Responsibilities of all members

Members must carry out their duties and meet their legal responsibilities set out in the LLP agreement.

Every member must register for Self Assessment with HM Revenue and Customs (HMRC).

Responsibilities of designated members

Designated members have more responsibilities than ordinary members and must:

Designated members must also:

Designated members can be prosecuted if they don't meet their legal obligations. The LLP can also be taken off the register.

Set up and run a limited liability partnership (LLP)
Members' responsibilities