Could anyone please assure me that it is still Ok before I incorporate the LLP that two already existing Limited Companies can become partners of an LLP. The LLP is to be used for a JV operation and the limited companies will still trade independantly as well as within the LLP.
thanks for your help
Replies (3)
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OK in what sense?
There is nothing to stop limited companies becoming members of an LLP regardless of their previous relationships. If the Limited companies operate trades separately, those trades will also be separate from the LLP.
Whether that is a good idea or not, especially with the recent rules changes on LLP profit splits is another question entirely. It is also a question that will be very dependent on your specific circumstances. Take some paid-for advice now to save yourself grief down the road.
Try a search
Search for LLP tax rule changes, and a whole bunch of results come up. Here is the Law Society guidance on the matter.
http://www.lawsociety.org.uk/advice/practice-notes/llp-tax-changes/
This is really something you should take specific advice on though. Dependent on your goals, there may be a number of ways of achieving them by a different route.