A Limited Liability Partnership (LLP) is an alternative legal structure that was introduced in 2001 by the LLP Act 2000. It is an ideal set-up for the types of professions that normally operate as a traditional partnership, such as solicitors, accountancy firms and dental practices.
An LLP shares the same characteristics as a normal partnership structure in terms of tax liability, internal management and the distribution of profits, but it provides reduced financial liability, or ‘limited liability’, to each partner. Traditional partnerships place the full burden of business debts upon the partners. LLPs place reduced financial liability upon the partners, which is a more desirable option for many people. It is similar to the financial protection offered to limited company owners.