Know Your Limits | Features

How do the business structures differ?
	Partnership	LLP	Limited company
Limited liability	No	Yes, unless negligent	Yes, unless negligent
Laws and statutes	Partnership Act 1890 – 50 sections	New legislation based on Companies Act and so on – 76 pages of regulations	Companies Acts 1985 and 1989 – more than 900 sections and schedules
Audit requirement	No	To be decided	Yes
Disclosure of information	None	Likely to be in accordance with Companies Acts	In accordance with Companies Acts
Remuneration	Profits/drawings	Profits/drawings	Salary/dividends
Taxation	Income tax	Income tax	Income tax, National Insurance and corporation tax
Ownership	Partners	Partners	Shareholders
Management	Partners	Partners	Directors
Costs of changing	No additional costs	Legal costs in setting up Possible audit costs	Legal costs of conversion Audit costs Additional tax costs