LLP - Limited Liability Partnership

[Snoopy1948]

Having a discussion recently about the use of LLP after a displayed business name and how it look so much like a 'badge of honour' especially when it appears in 12 inch high metal lettering. Usual examples are for firms of solicitors and accountants and how the usage is becoming widespread.

MY simple understanding of this is that if such a firm is sued for negligence, then the liability is limited to the assets of the partnership only and not to any individual practising within that group, a bit like liabilities of a limited company.

But while some prospective punters may well perceive the nomenclature as bearing goodness ( 12 inch metallic letters do hit the spot ) out of ignorance, how exactly should the public view their engagement of such firms bearing LLP? With caution? Or simply with the view 'that's how things operate now'?

[Snoopy1948]

Re: LLP - Limited Liability Partnership

Any thoughts on this one please? :taunt:

[des8]

Re: LLP - Limited Liability Partnership

I understood with LLPs that whilst the individual partners liability was limited to the value of the capital contributed by that individual, professional negligence by that individual could lead to personal liability.
In other words whilst the partnership has limited liability, it does not remove each partners liability for their own actions in the same way as ltd co/ directors.
There is joint, but not several, liability

But I easily misunderstand>>>>>>>>>>>>

[charitynjw]

Re: LLP - Limited Liability Partnership

Hi Snoopy

I asked my mate Google.

https://www.rapidformations.co.uk/bl...ompany-or-llp/

charitynjw (hmmmm......)

[Snoopy1948]

Re: LLP - Limited Liability Partnership

Thanks guys ... my concern here is that the uninitiated might well believe that the term 'LLP' emblazoned on the signage might suggest a professional qualification or standing and I just wondered how many others may have felt the same before actually asking the question on engagement. Cheers ....

[charitynjw]

Re: LLP - Limited Liability Partnership

I did, for some time back in the day, think that LLP was something to do with 'Legal' something or other, especially as it always seemed to be used in conjunction with solicitors.

[R0b]

Re: LLP - Limited Liability Partnership

It can be confusing especially when you see LLP on the end of the business but as you have said, it is limited liability partnership and works in a similar manner as a company i.e. separate legal entity, filing requirements etc. but there are some slight differences that don't require in depth detail.

Companies who are an LLP are legally required to make sure these letters are added in certain places under the trading disclosures legislation. That means, it must be added at their registered office, on their letterhead, on their website and if they fail to do so, they are liable to be prosecuted.