Helping Others to Embrace the LLP Structure; John Revill Discovers How Dains' Experience Is Helping Firms across the Midlands Embrace the Limited Liability Partnership Structure
Byline: John Revill
Dains is using its own experience of converting from a traditional partnership into a limited liability partnership to advise professional firms across the Midlands. Surveyors, solicitors, doctors and dentists are increasingly embracing the limited liability partnership (LLP) structure.
An LLP is a combination of traditional partnership and a limited company. In traditional partnership, partners have unlimited liability, whereas conversion to LLP offers the benefits of limited liability. Under an LLP, the firm is still able to retain its traditional partnership structure.
But in order to convert they must seek accountancy advice - which is where Dains' professional team comes in.
Ed Hill, Dains Senior Client Manager with clients in the professional services sector, said: "We have been guiding many businesses through the transition from partnership to LLP. Dains itself used to be a partnership but is now an LLP, which protects the individual partners from personal liability, but maintains the tax status of partnership. Under a partnership structure if you make a mistake you can be sued, no matter what your involvement. With LLP, the liability is restricted only to the entity's assets. Converting to LLP status is a catalyst for change and offers the opportunity to be a more corporate oriented business. We offer business advice throughout the transitional phase from partnership to LLP."
The process took Dains six months to complete, but now it is offering the benefit of its experience to other firms in the Midlands.
LLPs are taxed quite differently to companies in that the profits are treated as the personal income of the members as if they had run their business as a partnership. …