This package of documents includes all the documents you need to set up a LLP in England and Wales or Scotland:
- Limited Liability Partnership Agreement
- statutory form LL IN01 and accompanying notes
Why do I need an LLP agreement?
There is no statutory requirement for an LLP to have a written LLP agreement. You can simply just register your LLP with Companies House using the LL IN01 form. It is, however, widely accepted practice to have a formal agreement in place setting out the rights and responsibilities of the partners. This is what a Limited Liability Partnership Agreement does.
If you don't have an LLP agreement in place then your partnership will be governed by the default provisions of the Limited Liability Partnership Act 2000 and the Limited Liabilities Partnerships Regulation 2001, which may not suit your partnership. In particular, the default provisions make it very difficult to kick out a partner, to decide how to distribute profits or to allocate different levels of responsibility to individual partners. For these reasons (amongst others), many LLPs have a formal LLP Agreement that overrides the default provisions in a way that better suits how they wish to conduct business.
A LLP agreement can be set up between the partners at any stage during the life of the LLP but the usual practice is for the partners to discuss, agree and sign an LLP agreement at around about the same time as registering the LLP at Companies House.
How do I register a new LLP?
All LLPs must be registered with Companies House. You can either submit a paper LL IN01 or file electronically. Filing electronically is cheaper.
The LLP Agreement
Our Limited Liability Partnership Agreement template can be used for 2 to 10 partners who wish to go into business together. It is a formal agreement between the partners setting out their rights and obligations during the existence of the partnership and also upon its dissolution. The template includes clauses covering:
- banking arrangements
- distribution of profits and losses
- members duties
- holiday leave
- decision making
- restrictions on members
- death, retiral or expulsion of members
- winding up.