There are numerous ways in which you can set up a business, partnership, limited company or sole trader. Amongst these options are hybrids, including limited liability partnerships (LLPs), which incorporate elements of different setups. As ever, when it comes to taxation, nothing is straightforward. Consequently, it is essential to appreciate the pros and cons of LLPs and limited companies when setting up a business.
As the term suggests, an LLP is a type of partnership where the liability of each member is limited. In this case, to the investment/obligations made by each member.