Notesale: Turn your study into money

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being liable to pay tax on his share of the income of the LLP
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Expenses when setting up: Low costs, but must pay legal fees for
Partnership Agreement
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Registration fee + Incorporation document
2
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Printing of LLP stationery

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On-going expenses after the business is set up:
2008 Regs Accounts must be prepared by accountants annually
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SBEEA 2015 File a Confirmation Statement min
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Higher costs due to regulation and disclosure rules
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There is therefore nothing about
calling of (or procedure at) meetings
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Methods of financing: LLP can borrow and create floating charges
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Cannot raise finance by issuing shares
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7(1) CA 2006 Min
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, as well as incorporation fees due to Companies House
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High on-going administrative costs
(More than LLPs) because of the greater regulation and disclosure
rules
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Companies can adopt their own tailor made
articles instead of the model articles
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Again, of members give personal guarantees, limited liability is lost
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e
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Liability to third parties: s
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Legislation: CA 2006 + all other relevant legislation and common law
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s86 CA 2006 Registered office
2
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Information on directors (and secretary if the company has
one) and members
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House as an alternative to internal registers
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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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PARTNERSHIPS:
Key characteristics of a partnership:
tax transparent
allows for a high degree of confidentiality
min 2 people
PA 1890 does not distinguish between actual and legal persons,
so a company could be a partner
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Default provisions are
disadvantageous and must set up a Partnership Agreement
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5 PA 1890 Each partner is an agent of the firm, and will bind
the firm and other partners by contracting with third parties
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6 PA 1890 The firm will be bound by the actions of anyone
authorised to act on the firm’s behalf
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30 PA 1890 All partners share a fiduciary relationship and have
a duty not to compete with the firm by carrying out a similar
business without the permission of the other partners
Advantages:
× it costs nothing to create a partnership

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