Limited companies and limited liability partnership (LLPs) offer an alternative structure for running your business. Both can limit your business liability by separating your business and personal finances and assets. Limited companies require a formal structure that is regulated, whereas an LLP allows more flexibility but does not offer the same tax advantages.
Whether you run your practice as a limited company or LLP, you will need to follow various legal requirements, including choosing an appropriate business name, identifying those with significant control in your business, and registering your company or LLP with Companies House.
Incorporation as a limited company or LLP will not suit every practice so you must seek independent legal and financial advice before embarking on such a change.
Key learning points
This advice provides an overview of the implications of running your practice as a limited company or an LLP. It will help you understand:
- The similarities of companies and LLPs and the differences
- How to register a company or LLP with Companies House – the process to follow and the information that you need to gather
- The implications for other aspects of your practice – registration with the CQC, HIW or RQIA, for example
- The implications for your employees
- The effect of incorporation on an NHS contract and pension.