Establishing an LLC
In the UK an LLC is known as an LLP - similar meaning, with similar rules, but abbreviated from Limited Liability Partnership.
These were introducd from 6 April 2001, and an LLP comprises a corporate entity distinct from companies incorpoared under the Companies Act, but there are many similarities.
Every LLP must have at least two, formally appointed, Designated Members, who carry responsibilities similar to those of a Company Secretary. These designated members have statutory responsibility for certain tasks and are personally liable in the event of a default to any fine or penalty. Responsibilities include:
- Signing accounts
- Delivering accounts to the registrar of companies
- Appointments and removal of auditors (if required)
- Notification of membership changes (and changes to the registered office) to the registrar of companies
- Preparing, signing and delivering the annual return
- Applying for the LLP to be struck off the register
Similarly to a subsidiary in the UK, an LLP must prepare and publish accounts and also file an Annual Return.
We outline the advantages and disadvantages of an LLP here.