Notesale: Turn your study into money

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SETTING UP IN BUSINESS
Must cover the following matters with new clients:
1
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Conflict of interest check
3
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4
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Open a matter

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Legislation:
1
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LLPs Regulations 2001 Default provisions on capital and profit
share between members
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LLPs (Accounts & Audit) (Application of Companies Act 2006)
Regulations 2008 Set out accounting requirements
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LLPs (Application of CA 2006) Regulations 2009 apply the CA 2006
to LLPs, e
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must have a register of charges and file an annual
confirmation statement
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Similar disclosure to companies:
1
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Details of members
LLPs can, for a fee, keep registers of members, directors,
secretaries and charges at Comp
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3
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LLPs need to keep a PSC Register disclosing all persons of
significant control
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Disclosing details of certain invoices and payment practices

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May trade immediately? No, as LLPs must be registered
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1 person but cannot form
sole trader business for more than 1
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Flexibility but pressure if sole trader has no
support
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Expenses when setting up: No formalities so no setting up costs
On-going expenses after the business is set up: None necessary,
although usually accountants will be involved in keeping accounts
Methods of financing: No quick options
...

Profits: All profits go to the owner
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May trade immediately? Yes
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The company
may therefore own property, enter into contracts, sue and be sued in its own
name
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Partnership

s
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– May form a partnership irrespective of contrary intention
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The partnership is unable to own property or enter
into contracts
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If partnership goes insolvent, creditors
can enforce debt against the partners personally
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2 persons
Expenses when setting up: None necessary, although it beneficial to
have a Partnership Agreement drawn up by lawyers (more expensive)
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Methods of financing: Partners can borrow but cannot create floating
charges
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Liability: Not limited - Partners have unlimited personal liability
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No disclosure required
May trade immediately? Yes
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– Common for Law firms
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But for tax purposes, it
is treated as a partnership and the m

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