English Limited Liability Partnerships (LLP’s) are generally used by professionals such as solicitors, dentists, corporate service providers and accountants. There can be tax advantages for LLP’s especially for those with foreign partners. We recommend that you consider these structures to house your services, particularly those that are marketed on the internet for global applications, and especially if you have one, or more, partners who are overseas residents. The costs are shown in the table below.
|Prices in GBP – £||Basic||Nominee||Private|
|Name check, application process & govt. fees for COI||Y||Y||Y|
|Registered Office & business address in England||Y||Y||Y|
|Nominee Partner – cost for 2 foreigners (minimum)||Y||Y||Y|
|Prepare Trust Deed, Settlor, temporary Trustee||X||X||Y|
|Locally certified signatures of trust||X||X||Y|
|Recommendation to account provider selected||Y||Y||Y|
|Application for tax exemption||Y||Y|
|Sub Total or Total||£210||£460||£508|
|Power Of Attorney for manager/owner||£100|
|Apostille package of documents or single item||£180|
|Notary certification per signature||£95|
|Registered Agent/Justice of the Peace certified||£25|
|Documents for account opening||at cost|
For overseas citizens who, in brief, do not live in the UK, and do not do business in the UK, or receive other income from the UK, we can apply for relief from UK tax requirements, including reporting. You may find it beneficial when considering this aspect with the use of nominees. Let’s talk about your own situation in more detail! An English LLP may well be the answer for you.
The main differences between a limited company and an LLP
1. A limited company can be registered, owned and managed by just one individual – a sole person can act as both the director and shareholder (or guarantor). A minimum of two members are required to set up an LLP. However, one way around this is to set up a dormant limited company as the second LLP member, which we can provide.
2. The liability of company shareholders or guarantors is limited to the amount paid or unpaid on their shares, or the amount of their guarantees. The liability of LLP members is limited to the amount each member guarantees to pay if the business runs into financial difficulty or is wound up.
3. A limited company can receive loans and capital investment from outside investors. An LLP can only receive loan capital. It cannot offer equity shares in the business to non-LLP members.
4. Limited companies pay corporation tax and Capital Gains Tax on all taxable income. LLP members pay taxes (if any) according to their personal tax residency. The LLP itself has no tax liability.
5. It is easier to change the internal management structure and distribution of profits in an LLP.
6. A limited company can be operated as a non-profit business. An LLP must be set up with the intention of making a profit.