Converting to an LLP

Our Commercial Team can provide you with the best advice about the implications of converting your business to an LLP and the information on what the process will entail. The Team are able to tailor the documentation required for an LLP to the needs of your business and update it when changes are made to the business.

• There is limited liability (similar to a company) for the members
• Flexibility of organising the internal structure of a business in a similar way to a partnership
• Better prospects of continuity than a partnership as it is a separate entity in its own right
• Even though the LLP will have to file accounts at Companies House there is limited disclosure for small and medium LLPs
• The conversion is normally reasonably straightforward, but the process is unlikely to be completed in less than 9 months and takes a great deal of planning.

• Once the transfer has taken place, what will happen to the existing partnership? Will it be dissolved immediately or will there be an interim period in which the partnership will continue?
• When will the transfer be made? This could be as soon as the certificate of incorporation is received or some months after incorporation, for example, to be in line with the year end.
• Will all the partners become members of the LLP?
• The scope of the LLP Agreement
• Obligations to former partners and obligations of former partners
• Valuation of existing assets
• The treatment of current contracts, for example, will they need to be novated and is consent required?
• Transfer of property, the LLP will upon transfer be the owner of any property transferred.
• The transfer of staff (TUPE will apply)
• Intellectual property