You can set up (‘incorporate’) a limited liability partnership (LLP) to run a business with 2 or more members. A member can be a person or a company, known as a ‘corporate member’.
Each member pays tax on their share of the profits, as in an ‘ordinary’ business partnership, but isn’t personally liable for any debts the business can’t pay.
You’ll need to:
- choose a name
- have a registered address - this will be publicly available
- have at least 2 ‘designated members’
- have an LLP agreement that says how the LLP will be run
- register the LLP with Companies House
Check the rules if you’re setting up a limited partnership. The rules are different for setting up an ordinary business partnership or a private limited company.
Choose a name
Your name can’t be the same as, or too similar to, another registered company’s name.
Your name must end in ‘Limited Liability Partnership’ or ‘LLP’. You can use the Welsh equivalents if your LLP is registered in Wales.
Check the Companies House register.
You can’t choose a name that might be considered the ‘same as’ or ‘too like’ an existing name if it’s too similar.
Displaying your name
There are rules you must follow about displaying your company name.
You can trade under your own name, or you can choose another name for your business (known as a ‘business name’). You don’t need to register your business name.
You must include all the partners’ names and business name (if you have one) on official paperwork, for example invoices and letters.
Your registered address is where official communications are sent, for example, letters from Companies House and HM Revenue and Customs (HMRC).
It must be:
- a physical address
- in the same country that your LLP is registered in (for example, an LLP registered in Scotland must have a registered address in Scotland)
You can use a PO Box, but you must also include a physical address and postcode after the PO Box number.
You can use your home address - this will be publicly available.