Partnerships & LLPs
Among all the different ways to structure a business, LLPs and partnerships face a particularly unique range of issues that require a very distinct approach.
Structuring a traditional partnership or LLP needs careful planning and water-tight agreements to ensure that members’ rights and duties are clear, as well as understanding of the tax implications and fiduciary responsibilities which are different to those of employees. However, like all businesses, issues such as protecting a firm’s interests when key individuals retire or a team defects, dealing with disputes or grievances, and best managing mergers or joint ventures may all need to be addressed.
Our highly regarded practice advises on all aspects affecting LLPs, partnerships and the individuals who work within them. As well as our well-deserved reputation as the “lawyer’s lawyers”, we are also trusted legal advisers for many leading firms of accountants, surveyors, architects and management consultants, as well as clients utilising a partnership structure in industries such as financial services, marketing communications and healthcare.
Innocent partners may not be liable for losses caused by the fraudulent conduct of rogue partners28 July 2021
In July 2021 the Court of Appeal held that innocent partners in a firm of solicitors are not always liable to former clients of the firm for losses caused by the acts of a fraudulent partner[i].
Any member of an LLP may be subject to a Disqualification Order – not just those on the Management Committee06 April 2021
Pursuant to the Company Directors Disqualification Act 1986 (CDDA) the court may, in certain circumstances, make a ‘Disqualification Order’ preventing an individual from being a company director for a period of up to 15 years.
A Deed of Retirement doesn’t always protect a retiring partner09 June 2020
It’s not unreasonable to think that if a partner retires from a limited liability partnership (“LLP”) under the terms of a Deed of Retirement which contains a waiver and release clause, that partner will not be subjected to claims for any liabilities to the LLP.
Deferring tax to January 2021 – a word of warning to management teams and partners05 May 2020
In seeking to survive the coronavirus lockdown, partners and management teams at many professional services firms will have welcomed the package of support provided by the UK Government, including the proposal that on account tax payments due by 31 July 2020 may be deferred until 31 January 2021.
VAT and income tax deferrals to assist VAT-paying businesses and the self-employed during Covid-19 Outbreak27 March 2020
As part of the sweeping financial package announced by the Government on 20 March 2020, the Government is offering VAT and income tax deferrals to assist with the cash-flow of VAT-paying businesses and the self-employed. These deferrals are expected to provide over £30bn of additional cash-flow to a wide variety of British businesses.
Expansion of HMRC’s “Time to Pay” Arrangements during the Covid-19 Outbreak27 March 2020
Due to the immediate and stark effect that the Covid-19 outbreak is having on a lot of businesses, the Government has reminded everyone that it often reaches arrangements with businesses in financial distress for deferred payment of their tax liabilities. While this facility is not new, the Government expects the demands on the service to increase dramatically and is therefore scaling up its capacity to deal with new enquiries.
Mark Lim writes for Accountancy Age: Insolvency of LLPs – liability and risk for partners07 June 2019
In an article for Accountancy Age, Mark Lim outlines what partners need to know in the event of an LLP’s insolvency.