An LLP, or Limited Liability Partnership, and a Limited Company are two types of legal business structure.

In a limited company the business is a separate legal entity to its owners. As owners, their liability for any debts incurred by the business are limited to the value of their investments in the business.

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What's the difference?

An LLP is a partnership structure but each partner's liability is limited in that they won't be held responsible for another partner's conduct or negligence.

Whereas a limited company can be owned, managed and registered by one person, an LLP requires two members in order to be set up.

Both LLPs and limited companies must file annual accounts, though only limited companies have to pay Corporation Tax and Capital Gains Tax on all taxable profit.

LLPs don’t need to.

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