What is a Limited Liability Partnership? #AskAMS

I’ve heard that an LLP is a good solution for me and my business partner - is this so?

A Limited Liability Partnership (LLP) is safer than a typical Partnership, just as a Limited Company is safer than a Sole Trader business.

Safer because:  The advantage an LLP has over a   Partnership is that partners in LLPs are not personally responsible for the LLP’s debts.  The business debts of the individual are ‘limited’ and their personal assets are safeguarded just as in a Limited Company.

Tax savings: Since December 2013 and the Mixed Partnership Rules, neither normal partnerships nor LLP’s are generally as tax efficient as Limited Companies. However there is usually more flexibility in how you pay individual partners though either a partnership or LLP than through a Limited Company.