In 2001 the Limited Liability Partnership Act Regulations came into force to allow a profit making business to be run on a similar basis to that of a traditional partnership, with the individual partners have the benefit of limited liability up to the value of the capital introduced.
The owners of the LLP are generally those who introduce capital to the LLP and are the Members of the partnership being governed by a Partnership Agreement or by the Limited Liability Partnership Act Regulations 2001.
Should insolvency be experienced then the same rescue and insolvency options are available to the LLP as those for a Limited Company under the Insolvency Act 1986.
- Voluntary Arrangements
- Voluntary Liquidations
- Compulsory Liquidations
For solvent LLPs wishing to wind up the partnership steps must be taken to ensure that the timing of the solvent winding up provides the best tax advantages and ensure that distributions of assets are maximised for the benefit of the Members.