Any group of two or more people who want to set up a profit-making business together can form a limited liability partnership (LLP), unless one of them has a disqualification order (disqualified to act as a company director or LLP member) in place. It is also possible for companies, and other LLPs, to be members of an LLP.
An LLP must have at least two members, and at least two must be 'designated' members. If there are fewer than two designated members then every member is deemed to be a designated member.
The members of an LLP normally share in both the responsibilities of running the business and the profits that it makes. Exactly how their rights and responsibilities are defined and divided depends on the LLP's partnership agreement or 'deed of partnership'. Designated members have some extra responsibilities on top of those of ordinary members.
Designated members have to ensure that the LLP meets its legal obligations by:
Designated members are legally accountable if they fail to carry out their duties properly.
It is important that you notify Companies House whenever any of the members' details change. For more information on what you need to file, see our guide on changes within a partnership.
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