Limited Liability Partnership Is the New Way to Do Business
Byline: STEPHEN HORRIGAN
Business Daily columnist STEPHEN HORRIGAN, of chartered accountants Dowle Horrigan, looks at a new way of structuring your business which could bring many benefits.
AN important but rather unheralded event occurred at the start of the tax year on April 6. I am referring to the launch of a new business structure which really amounts to one of the most significant changes for many years in the way we conduct business in this country.
The Limited Liability Partnership is a hybrid creature. It brings together the main features of two business structures - the partnership and limited company - and I believe it is an important step forward to helping businesses become more flexible and reflect today's changing and competitive environment. I need hardly say that the move to create LLPs follows the American model, where a similar arrangement has been available for some time.
It reminds me of the Push-mePull-you in Doctor Dolittle - a two headed beast which can take you in a totally new direction. For the LLP will mean that entrepreneurs now won't have to make the choice between partnership and incorporation. A new middle path beckons with the arrival of the new entity.
The main attractions of the LLP are twofold. In the first place it offers the security of limitation of liability, which is of course the principal feature of the Limited Company. In some quarters, there is a view that limited liability is often abused by unscrupulous directors who set up companies, intending from the outset to defraud their creditors. …