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Limited liability partnerships

Under the Limited Liability Partnerships Act (LLPA) 2000, it is possible to create a different form of business association, called a limited liability partnership. Under the LLPA, a limited liability partnership becomes a corporate body with a legal personality separate from that of its members (the partners). It follows therefore that the members of a limited liability partnership will not ordinarily become liable for the debts of a limited liability partnership and, although a limited liability partnership is likely to have features similar to an ordinary partnership, the law relating to ordinary partnerships does not apply to limited liability partnerships (s 1 of the LLPA). To be incorporated, a limited liability partnership needs to be registered with the registrar of companies at Companies House. Much of the detailed provisions relating to limited liability partnerships is to be found in secondary legislation, in particular the Limited Liability Partnership Regulations 2001. These regulations apply a number of provisions from the CA 1985 and Insolvency Act 1986 to limited liability partnerships, with some modification to reflect the different nature of a limited liability partnership. Since the LLPA came into force (on 6 April 2001), a number of firms, such as solicitors and accountants, have chosen to register as limited liability partnerships.