LLP trading company

[pboyles]

Why would a supposed trading company (sort of prop style, company funds) register as an LLP in the UK and not a limited company? Why would your traders be members of the LLP, assuming they didnt put any investment into the company?

There has to be a reason to structure this way.

 

[Nigel-P]

I'm fairly sure an LLP can be more flexible in terms of its ownership than a Ltd company can. You can admit partners, have partners leaving, etc., without too much hassle. This can be a bit trickier with the shareholders of a limited company. This is why law firms are generally run as partnerships.

I think the filing requirements with Companies House are a bit less onerous than they are with a Ltd companies also.

I don't know why traders would be equity partners without making an investment into the partnership. I suppose if they were very good you could admit them as equity partners to incentivise them.

 

[pboyles]

I.

I don't know why traders would be equity partners without making an investment into the partnership. I suppose if they were very good you could admit them as equity partners to incentivise them.

That's the bit I don't understand, especially since all the other similar companies are limited companies.

 

[scose-no-doubt]

It's a tax thing. You can do all sorts of wonderful stuff with corporate partners. It's a lot easier when dealing with multiple partners of varying contribution vs messing with shareholding too. It's legit mate.

less red tape and more accountability in comparison to limited too.