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The members of an LLP: how many members should an LLP has? The tights and responsibilities of LLP’ members: any group of two or more people (or corporate entities) who want to set up a profit-making business together can form a UK limited liability partnership (LLP), unless one of them has a disqualification order (disqualified to act as a company director or LLP member) in place. It is also possible for UK or any other offshore registered companies, and other limited liability partnerships, to be members of a UK LLP. A limited liability partnership must have at least two members, and at least two must be 'designated' members. If there are fewer than two designated members then every member is deemed a designated member. The members of an LLP normally share in both the responsibilities of running the business and the profits that it makes. Exactly how their rights and responsibilities are defined and divided depends on the LLP's partnership agreement or 'deed of partnership'. Designated members have some extra responsibilities on top of those of ordinary members. Set-up and register a Limited Liability Partnership (LLP) - tax matters of an LLP and record keeping: profits are shared among members of a limited liability partnership (LLP), and individual members - not the LLP - pay income tax on these profits. Unlike limited companies, LLPs do not have to pay corporation tax. In most cases, the members will be self-employed, so they must include details of any profits they get on their individual self-assessment tax returns each year. Self-employed partners are also responsible for paying their own National Insurance contributions (NICs). It is important that each UK-resident private individual member of the UK limited liability partnership registers as self-employed with HM Revenue & Customs (HMRC). The nominated partner must also file a Partnership Return - showing each partner's share of the profits or losses. In the case if your LLP member is a private individual who is a resident outside of the UK, he cannot be registered as a self-employed with HM Revenue & Customs, he needs to register himself as a self-employed in the country of his residents. It is also possible for LLP members to be companies or other LLPs rather than individuals. If so, UK companies that are limited liability partnership' members will have to pay corporation tax on their profits from the LLP and should include the relevant details on their self-assessment return for corporation tax. In the case if, a company is not resident of the United Kingdom, and has no UK place of management; such company does not need to pay corporate tax in the UK. You must keep business records for a partnership for at least five years and ten months following the end of the tax year that the records relate to. The records that you will need to keep will depend on the types of income and gains that the partnership has. Establish, create or incorporate an LLP in the UK, offshore tax haven or USA online or visiting our office in London: the UK, USA and offshore-registered LLP can be used for a varied of business activities on behalf of both the UK and non-UK owners, and we are pleased to advise you on the unique environments of your case. At the time of your LLP registration or at any time thereafter, Coddan can be appointed as your nominee member (partner), we can also provide a full range of professional services from provision of a registered office address (we offer a prestigious address in three different locations in London, Cardiff, Bristol, Liverpool, Manchester, Sussex, Edinburgh and in Glasgow), UK local and toll-free telephone numbers, general mail-forwarding, mail scanning, telephone answering and phone calls forwarding, domain names registration; bookkeeping and preparation of management accounts for the UK and offshore registered limited liability partnerships; preparation and filing of statutory accounts, preparation and filling the LLP's annual return; advice and assistance to businesses in relation to the opening of bank accounts in England, Ireland, Scotland, and in tax-free jurisdictions. We can also arrange a help with the notaries' legalisation, consular and apostille certification. If you will see something unclear in packages' description, please do not hesitate to contact us for more information.