Advantage of an LLP over a Ltd? Or vice versa?

[Talktime]

I want to create a dormant entity to operate as a consultancy business.

What's the advantage over LLP and Ltd?

 

[Scalloway]

Why is it going to be dormant?

 

[Talktime]

Not relevant but…

I live overseas and I run a consultancy for a UK market.

I need to have a UK presence.

 

[Scalloway]

Having a dormant company implies that it will not be trading.

A limited company just needs one shareholder. An LLP is a partnership so needs two shareholders.

A limited company pays taxs on its profits. The partners in an LLP pay tax on company profits based on their personal tax affairs.

 

[HFE Signs]

With LLP tax is treated as a partnership rather than its own entity. LLP doesn’t pay corporation tax