LLP Incorporation – A Complete Guide

The first step in LLP incorporation is selecting a suitable name for your partnership. Keep in mind that your chosen name must end with ‘Limited Liability Partnership’ or ‘LLP.’ It’s crucial to ensure that your selected name is unique and not too similar to existing registered company names. 

You can check the Companies House  register to verify name availability.

Your LLP needs a registered address, which will be publicly available. This address is essential for official correspondence. It must be a physical address located in the same country where your LLP is registered. You can use your home address but be aware that it will be publicly visible.

An LLP must have at least two designated members, but you can have more if needed. Designated members have additional responsibilities, such as keeping LLP accounts. Ordinary members can also be a part of your LLP.

To run your LLP smoothly, it’s recommended to establish an LLP agreement that outlines how the partnership will operate.

This agreement covers profit sharing, decision-making processes, members’ responsibilities, and procedures for adding or removing members. You can draft your own agreement or seek legal assistance.

Once you’ve completed the previous steps, it’s time to register your LLP with Companies House. You have several options for registration:

Register Electronically: Use third-party software for a convenient and quick registration process. It typically takes 24 hours, and if you apply before 3 pm, you can even get same-day registration by paying a higher fee.

Register by Post:   You can download the LLP registration application form and send it by mail. This process may take up to 5 days.

Use a Formation Agent: Consider employing a formation agent to handle the registration process for you. The cost will vary depending on the agent.

All LLP members must fulfil their duties and legal responsibilities as outlined in the LLP agreement. Every member should register for Self-Assessment with HM Revenue and Customs (HMRC).

Designated members have additional responsibilities, including:

• Registering the business for Self-Assessment with HMRC.
• Company type and membership
• SIC Codes to reflect principle business activity
• Registered Office address
• Registering for VAT  if your business expects sales exceeding £85,000 annually.
• Appointing an auditor if required.
• Maintaining accounting records.
• Preparing, signing, and submitting annual accounts to Companies House.
• Submitting a confirmation statement (previously annual return) to Companies House.

It’s crucial to keep Companies House informed about any changes to your LLP. You must report changes related to the registered or alternative address, members’ details (such as name or address), or registered name promptly.

Depending on the type of change, you can use online services, download forms, or employ an agent to handle these updates.