Converting a Partnership to an LLP: Why Convert?

Originally published May 2005

The benefits of converting to a limited liability partnership ("LLP") should outweigh any other considerations. In particular, in an LLP, each partner, or "member" (as they should be called) will in most cases have no personal liability for obligations of the LLP or the other members - unlike in a general partnership, where a partner can be sued personally for the full amount of a claim and could risk losing all his personal assets.

An LLP is a form of legal entity created by the Limited Liability Partnerships Act 2000. The LLP is a body corporate, separate from its members, and can enter into contracts and take on obligations in its own name, usually without the members of the LLP exposing themselves to any personal liability.