An LLP or a Limited Liability Partnership is quite similar to a standard partnership except that the individual members have lower or limited liabilities to any debts that arise from the running of the business. In a nutshell, LLP offers the flexibility of partnership while operating a limited company. USA company formation
Steps in LLP Formation
The first step in LLP Formation is finalizing a ‘Deed of Partnership.’ This is a legally binding agreement between the members as it elaborates the rights and responsibilities of each party.
The deed also details administrative details such as names and addresses of the members, the amount of capital that is contributed by each member in addition to individual roles and responsibilities. The agreement also mentions the changes that need to be made in case a partner intends to leave the business at any point of time.
LLP Formation does not require a Memorandum or Articles of Association. Once formed, the LLP is required to file annual returns and annual accounts with the Companies House.
For these purposes, at least two of the partners of the LLP must be ‘designated members,’ who would have to meet the statutory requirements pertaining to the LLP.