Kiran Chotai, Senior Manager, has contributed to AAT Comment on the benefits and complexities of converting a practice from a limited (Ltd.) company to a Limited Liability Partnership (LLP).

In the past, accounting practices typically operated as traditional partnerships, with a significant number transitioning to Limited Liability Partnership (LLP) status over the last 23 years. Most of the top 100 practices are structured as partnerships. Limited company setups are often associated with acquisitions by private equity firms.

However, transferring a business from a limited company to an LLP is not straightforward. It usually involves closing one entity and establishing another, which carries its own legal and tax considerations. Despite the complexities, there are substantial advantages to making this transition.

You can read the article in full via AAT Comment here.

Our Partnerships service

Our Partnerships team are on hand to advise on the transitioning of your practice. Contact Kiran to discuss your needs in more detail.