LLP or Ltd Company

[muskoka]

My wife and I have been trading in a small way as a partnership but we are wondering if we should form a Limited Liability Partnership (LLP) to protect our private assets and keep bank accounts separate. But is there any difference to a ltd company in terms of liability or credibility when trading.

 

[Bob]

Do you have an accountant? There are major tax differences between an LLP and a limited company. Your accountant should be able to point you in the direction of the best entity for your personal situation. Both offer an element of protection

 

[muskoka]

No accountant, we've always done our own books. I'll need to investigate further it seems.

 

[Bob]

No accountant, we've always done our own books. I'll need to investigate further it seems.

You'll probably need an accountant whichever route you take as the accounts for neither of them is really DIY.

 

[1Click2Start]

As the replies above suggest, there are tax implications for both types of company and you would be best to speak with an independent financial advisor before proceeding to incorporate either company.
However, it terms of limited liability both entities are very similar in how they operate legally with creditors, suppliers etc.
If you would like to know more about incorporating either company, may I suggest you check out 1click2startacompany.com; we specialise in the incorporation of companies.

Kindest Regards

David

 

[RapidFormations]

As suggested this is a question which you would be best to seek the advice of an accountant on, there are a lot of different factors which could influence the best option for your business.

This may blog may help to provide a bit more context for the difference though: https://www.rapidformations.co.uk/blog/should-i-go-for-a-limited-company-or-an-llp/