PPP2 - STUDIO BRIEF 3 - LLP RESEARCH

After reviewing my notes taken in the various PPP business sessions with John I realised that we had not collected research into ways to protect our business if it was to ever go bell-up and bankrupt. 

If we did not have any protection in place and the company went bust the three founding members of the company (me, Leo & Jamie) could potentially be held personally accountable for any business depts incurred by the company. The end result of which could be the seizure of our personal assets by bank employed, court ordered bailiffs. 

To overcome this problem I started collecting research into Limited Liability Partnerships, something that John informed us briefly about in session. 



LIMITED LIABILITY PARTNERSHIPS.

• A limited liability partnership reduces personal responsibility for business dept.
• Unlike members of ordinary partnerships the LLP is responsible for any debts that are run up, not the individual partners. 
• For accounting periods starting on or after 06 April 3008 the time allowed for filling accounts at Companies House has been reduced from 10 months to 9. 

• An LLP is an alternative business vehicle that gives the benefits of Limited Liability but allows its members the flexibility of organising their own internal structure.
• The LLP will be responsible for the full extent of its assets so the liability of others is limited. 
• Any new or existing firm of two or more persons can apply for an LLP.
• The LLP legislation does not allow for a conversion process.
• LLp's are required to provide financial information equivalent to that of companies, including the filing of annual accounts.
• LLP's will also need to file an annual return, notify of any changes to LLP membership, notify any changes to members names or residential addresses & notify of any changes to their registered office address.

• Registration electronically of an LLP on its incorporation of the 2000 act is £14.
• Registration on paper of an LLP on its incorporation of the 2000 act is £40.

CONCLUSION

After reviewing the information and relaying it back to members of the group it was decided it is in our best interests as a small company to enter into an LLP to protect us from any prosecution if the company ever goes bust.