This is a freeview 'At a glance' guide to business combinations. 

This business combination of running an LLP & company structure is ideal for trading companies and professional practices.

Popular business combinations in use in the UK currently include:

  • A company plus service Limited Liability Partnership (LLP).
  • An LLP plus a service company.
  • An LLP with corporate partners.

If a company is paying, or expecting to pay in future, a combination of tax at marginal rates of Corporation Tax and also incurring Employers National Insurance on salaries and bonuses, it may be time to consider the advantages of setting up an LLP. In more recent times this may not have been as relevant as all companies have been paying corporation tax at the same rate since 2015. Corporation tax rates are due to change in 2023 and marginal rates will return so it may be worth revisiting this option.

Conversely, where partners are paying higher rate tax, a company run alongside an existing LLP is useful as a 'money box' and can shelter partners from top rates of tax.

A further combination is combining a corporate partner(s) with an LLP.

There are numerous advantages of using an LLP/company or company/LLP combination. This makes it extremely flexible but there are also substantial pitfalls. Which structure is right for the client depends on the individual circumstances.

Introducing our Masterclass guide:

Running an LLP in tandem with a company
This summarises the key issues for advisers and shows how to get started. It considers the advantages, pulling together case law to illustrate some of the potential pitfalls for tax: loans, benefits and associated companies, company law and ultra vires transactions.


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