An LLP is a form of separate legal business entity that gives the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership. They are intended for businesses which carry on a trade or profession, and are particularly attractive to larger professional partnerships.
Did you know that if you have no partnership agreement, then the provisions of the Partnership Act of 1890 apply?
If you form a partnership, you must register it separately with HMRC even if the partners have previously been self-employed. If the partners are new to business, they must also register individually. Registration for both partnerships and individual partners is now done online through the HMRC website.
HMRC charge interest on underpayments of tax, and pays interest (repayment supplement) on overpayments.