What is a Limited Liability Partnership (LLP)?
A Limited Liability Partnershipis a type of business structure in which each member bears limited personal liability for the partnership’s debts or claims. Partners in an LLP are not held liable for the actions of other partners. An LLP is usually set up by professionals such as accountants, lawyers, consultants and small businesses who want limited liability
Key Features
- Limited Liability Protection: Partners are not personally liable for the debts and obligations of the LLP beyond their contributions.
- Operational Flexibility: The role of management, decision-making processes and responsibilities can be designed by partners in any way which suits them best.
- Separate Legal Entity: An Limited liability partnership is a separate legal entity, different from its partners, which can own assets, enter into contracts, and sue or be sued in its own name.
- Tax Advantages: LLPs often benefit from tax advantages, such as being able to distribute profits among partners and potentially lower tax rates compared to other business organizations.
- Professional Image: In many industries and professions being an LLP increases credibility hence developing professional image in the market place.
How many partners are required to form an LLP?
In most jurisdictions, an LLP can be formed with a minimum of two partners. Some provinces may have specific requirements regarding the number of partners.
What are the ongoing compliance requirements for LLPs?
LLPs are required to file annual returns, maintain proper accounting records, and comply with tax regulations. Our team can assist with ongoing compliance to ensure your LLP remains in good standing.
Requirements
- Who Can Do It: Any eligible individuals or organizations can form an LLP within provincial or federal regulations.
- Documents to Sign: The customer needs to sign the limited liability partnership Agreement, Form 2 – Initial Registered Office Address and First Board of Partners of LLP, and provide other supporting documents as required.
Documents Received by Customer
Upon successful LLP registration, the customer receives:
- Certificate of Registration
- LLP Agreement
- Business Registration Number
Why Is OBR the best choice?
- Our team comprises legal experts well-versed in LLP formation procedures and regulations.
- We expedite the registration process to save your time and effort, so you can focus more on growing your business.
- Our team has over 20 years of experience in this field.
- We provide continuous support for tax matters, and any other needs your LLP may have after registration.
- Our pricing is fair and competitive, with no hidden fees, helping you establish an LLP at a reasonable cost.
