Conclusion (LLP)- FS Flashcards
(10 cards)
What form must be completed to incorporate a Limited Liability Partnership (LLP)?
The applicant must complete Form LL-IN01 and submit it to Companies House with the applicable fee.
What document is issued by Companies House to confirm the successful incorporation of an LLP?
A Certificate of Registration is issued by Companies House to confirm that the LLP has been formally registered.
What term is used to refer to the partners in a Limited Liability Partnership?
The partners in an LLP are referred to as members.
What is the purpose of a Limited Liability Partnership Agreement?
The LLP Agreement governs the relationship between members, including terms on profit and capital sharing, decision-making, and exit procedure
What happens if LLP members do not draft their own LLP Agreement?
If members do not create a bespoke agreement, the default rules under the Limited Liability Partnership Regulations 2001 will apply.
What is the minimum number of designated members required for a Limited Liability Partnership?
An LLP must have at least two designated members at all times
What distinguishes designated members from ordinary members in an LLP?
Designated members have additional administrative responsibilities, such as filing with Companies House and maintaining compliance obligations.
What are some administrative tasks that designated members must perform?
- Appoint an auditor (if needed),
- Keep accounting records, and
- Submit filings to Companies House.
Who is responsible for notifying Companies House of changes to the LLP’s details?
Designated members are responsible for notifying Companies House of any changes to the LLP, such as address or membership changes.
What are the typical contents of an LLP Agreement?
An LLP Agreement typically includes terms on:
- Profit and capital distribution,
- Member decision-making procedures, and
- Mechanisms for member exit from the LLP.
