An LLP is a relatively new corporate form allowing a partnership
the benefit of limited liability. LLPs are required to make returns
to Companies House. The relevant legislation does not provide a
practical regulatory framework for the operation of an LLP. There
are also ‘default’ rules which apply, eg all members share equally
the capital and profits of the LLP and that all members may
participate in its management. These rules do not generally provide
a practical basis for the operation of a business, and we would
recommend that a members’ agreement be put in place to allow more
flexibility and practicality.
