RE: FN-FORUM: llp vs ltd

date posted 15th August 2004 20:41

I'm also part of an LLP. We used that instead of going limited for all
the reasons listed by Lindsay, and for ease of setup and especially
flexibility on working. Not all partners within the organisation can
work all the time. By having an LLP we can draw out money depending on
how much we work, rather than having shares where someone who does no
work can benefit from how well the limited company is doing.

One disadvantage to an LLP is you can't hold profit over to the next
year. At the end of the financial year you have to clear out the bank
account (as far as we can read it.) This isn't a problem for us, as if
we have any money left we can easily spend it on sales & marketing
material, or by divvying it up between partners as a bonus.


Paul


On 15 Aug 2004 14:43:45 -0000, "Lindsay Baugh" said:
>
> Hi Rob
> < Are any of you out there LLP (Limited Liability Partnerships)>
> Yes, we are.
> There's a reasonably comprehensive overview of LLPs in PCG's Guide to
> Freelancing, available free of charge at www.pcg.org.uk. It also includes
> a
> bit about working from home, and there is another new document on the
> site
> called "Doing your homework", which is available for download from
> http://www.pcg.org.uk/resources/, and this explains all the tax
> implications
> etc about working from home and what you should and shouldn't claim.
> As an LLP, we possibly pay more tax, because we are taxed as individuals
> on
> our share of the partnership's profit before drawings and there are no
> "hiding places". It is however very straightforward to administer, and
> you
> don't have to operate a PAYE scheme. Being self-employed, you don't pay
> company car tax either; you just have to deduct a proportion of all your
> motor expenses to reflect private usage, which is not an allowable
> business
> expense, when doing the adjusted computation for tax purposes.
> Hope that helps, and good luck with the project.
> Kind regards
>
> Lindsay
> -----Original Message-----
> From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of Rob
> Garbutt
> Sent: Sunday, August 15, 2004 3:05 PM
> To: FN-FORUM / [EMAIL REMOVED]
> Subject: FN-FORUM: llp vs ltd
>
>
> Hi all,
>
> Are any of you out there LLP (Limited Liability Partnerships)
>
> If so, what are the advantages of it over a ltd company? Do you work from
> home and if so do you claim any rent, lecky, gas phone etc? Do you run a
> car and if so is it a better way to pay for the running if the vehicle
> than
> being a ltd company?
>
> cheers all
>
>
> Rob
>
>
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