A limited liability partnership (usually called an LLP for short) is similar to an ordinary partnership - but with a difference.
As you might have guessed, that's the LL bit.
Legally, a limited liability partnership is an entity in itself. It has its own identity separate from the business owners. So if an LLP can't pay its debts, the partners only have to pay out any money they've invested in the LLP, and that's it. Their liability is limited. Unless you've put a personal guarantee on a loan to the LLP, or you've done anything really bad, your own property is safe.
But setting up a business that has its own legal identity involves more formalities. The LLP must register with Companies House and must file accounts each year. Those accounts must be laid out in a certain way. I can help you with that.
And those accounts are on the public record and visible to anyone who cares to pay a few quid to look at them.
Also, the LLP must register at Companies House details of its address and the addresses of the partnership members, and again, those are on the public record.
So you need to consider the trade-off between the protection of limited liability and the increased exposure of your personal info.
What about a company? Next up...
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